"How innovation drives the German economy“

Mr. Federal Minister, KfW Capital was launched in the market five years ago. One of the goals of establishing a German institution specialising in venture capital was to significantly expand public venture capital in order to improve funding conditions for start-ups. Why are start-ups so important for future competitiveness and the transformation of the economy?

ROBERT HABECK: Germany is a strong business location. In order to continue developing this location and rise up to the challenge of the transformation, many technologies have yet to be developed. Start-ups provide the impetus for this. That is why they and their technologies are so enormously important, and I am delighted that KfW Capital has been contributing very decisively to strengthening their funding for five years now!

The start-up strategy of the Federal Republic just had its first anniversary. What has been achieved so far, and where do you see the greatest additional needs?

HABECK: In the area of start-up finance we have achieved a great deal to strengthen start-ups and funds. We have also taken important steps and made good progress in recruiting talent, for example with the Skilled Immigration Act. What we need now is to further simplify visa issuance procedures. Important next steps include a comprehensive package for reforming public procurement legislation, which should make it more innovative and better geared to the needs of start-ups. In order to increase the diversity of start-ups, we will soon launch a new module under the Future Fund that will be specifically available for diverse venture capital funds. We will improve the conditions for start-ups and venture capital investors with these and other measures of the start-up strategy to make Germany an attractive start-up nation in the heart of Europe.

Published on KfW Stories on 12 October 2023.