KfW invests for the third time in the High-Tech Start-up Fund (HTGF)

• Planned fund volume of up to EUR 300 million to provide technology-focused start-ups with capital
• KfW is the second largest investor after the German Federal Government
• Further increase in percentage of private investors

KfW continues to dedicate itself to providing finance for technology-focused start-ups by participating in the High-Tech Start-up Fund (High-Tech Gründerfonds, HTGF) and investing in the HTGF's third funding round. The new High-Tech Start-up Fund III (HTGF III) offers entrepreneurs and start-ups shares in capital. The aim of the fund is to provide promising start-up projects, who have a strong focus on research and development, with a successful launch. This enables start-ups to begin growing as soon as possible from their own turnover and thus helps them to acquire private investment for follow-up financing.

HTGF III has a planned volume of up to EUR 300 million. The Federal Government constitutes the main investor with an investment of up to EUR 170 million, followed by KfW with up to EUR 40 million. Moreover, prestigious investors from the industrial and economic sectors are also participating. HTGF III is the third round of the funding that the German Federal Ministry for Economic Affairs and Energy set up together with KfW and industry partners in 2005. Compared to the first two funding rounds, the share of private investors has increased to now around 30 per cent.

Dr Ingrid Hengster, Member of KfW's Executive Board, commented that "young, innovative technology companies are of key importance for Germany's competitive edge. In the seed and start-up phases, these companies require a sustainable provision of private equity. The High-Tech Start-up Fund has established itself as a successful key partner in venture capital. The increased contribution from private investors, compared to the first two funding rounds, is confirmation of this. At the same time, it supports us in our goal to mobilise private capital in larger amounts for the financing of high-tech start-ups."

Today, the High-Tech Start-up Fund is considered a well-established source of financing for start-up projects that are based in Germany and have a technology focus.