WIN initiative presented
Yesterday evening, Federal Chancellor Olaf Scholz, Economics Minister Robert Habeck and Finance Minister Christian Lindner announced at the German government’s Startup Summit that 12 billion euros in institutional capital (including from Deutsche Bank, Allianz, Deutsche Telekom and many more) had been mobilized for Germany as a location for innovation as part of the WIN initiative. These funds are now being invested in venture capital under the leadership of KfW and its CEO Stefan B. Wintels, and are intended to take the growth financing of start-ups and especially deep-tech start-ups in this country to a new level.Overcoming risk aversion: Habeck’s vision for mobilizing private capital for startups
In his opening speech, Economics Minister Robert Habeck emphasized the need to overcome “risk aversion” in Germany. The involvement of public and private donors emphasizes this claim. The approach is clear: more private venture capital should be mobilized in order to unleash the creative and economic potential of our start-ups. The Minister emphasized that 80 percent of the planned measures have already been implemented, including initiatives to improve venture capital financing for start-ups. The newly introduced WIN initiative is intended to further improve financing conditions. Nevertheless, Habeck, like Mario Draghi and the BDI, still sees a need for massive investment, comprehensive reforms and a strengthening of resilience. He emphasizes the need for good framework conditions, less bureaucracy, increased networking, matchmaking and internationalization in order to promote growth and position Germany internationally as a startup location.Funding gap: Verena Pausder warns and sees potential
Verena Pausder, CEO of the Startup Association, emphasized that capital is indispensable as fuel for startups and scaleups. Despite many efforts in recent years, there is still a financing gap in Germany, especially in the growth phase. In order to close this gap, it is necessary to mobilize more private capital, especially from institutional investors. The newly introduced WIN initiative is aimed precisely at this problem and represents an important step in the right direction. Pausder emphasized that this initiative has the potential to become a real game changer, similar to the French Tibi initiative. Only through such measures could Germany strengthen its innovative power and secure its future prosperity. In her opinion, the WIN initiative should be the prelude to a comprehensive financing offensive. Growth and innovation capital are important keys to economic dynamism. The annual deal volume on the German market has more than quadrupled in the past 10 years, from EUR 1.5 billion in 2013 with an interim record high of EUR 18.6 billion in 2021 to EUR 7.1 billion in 2023. This development is due to a variety of measures taken by the federal government, associations and companies, such as the “Future Fund“. The Future Financing Act also came into force in 2023.The success of the German startup strategy
The federal government’s start-up strategy contains 130 measures that will significantly improve the framework conditions for young and innovative companies in Germany. This includes measures in areas such as talent acquisition, financing, access to data and public contracts. As the Minister of Economic Affairs emphasized at the outset, over 80 percent of the measures have already been implemented according to the Federal Government’s second progress report. Progress was made above all in the important area of financing: With a target volume of one billion euros, which was already reached in fall 2023, the German Growth Fund is one of the largest venture capital funds of funds in Europe. In addition, the new high-tech start-up fund Opportunity has been providing additional growth capital since June. Germany has made a name for itself with 31 companies worth billions, the so-called unicorns. Over 1,384 start-ups were founded in the first half of 2024 alone, and employment figures in this sector are growing steadily. In addition, the Startup Factories lighthouse competition has picked up speed: To make it easier for ideas from universities to become business ideas, the BMWK is currently supporting selected projects in the development of detailed concepts.Ten new de:hubs strengthen collaboration between start-ups and the established economy
Cooperation between start-ups and the established economy is of great importance. The BMWK initiative “de:hub”, which is now being further expanded, creates important spaces for encounters and cooperation. The new hubs will be presented at the summit. The de:hub initiative will be expanded by ten locations, meaning that there will now be a total of 25 hubs in all federal states. New subject areas are being added, such as security and defense. The hubs give start-ups the opportunity to find suitable partners. This enables them to win new customers and offer established companies tailor-made innovations. Further information about the de:hub can be found here.Sustainability as a driver of innovation
Another focus of the summit was on the sustainable orientation of many German start-ups. Almost a third of all new companies in 2023 fell into the green economy category, with innovative approaches in areas such as renewable energies and sustainable technologies. For example, for rental solar systems, collection services for used glass with sustainable disposal or satellite-supported irrigation in agriculture. In 2023, the German government provided 1.5 billion euros in funding for sustainable start-ups in the climate, green and clean tech sector.Conclusion
The Startup Summit 2024 in Berlin marked a key moment for the German startup scene. With the WIN initiative and other strategic measures, Germany is positioning itself as a leading center for innovation and entrepreneurial growth in Europe. The combination of capital, creativity and political will shows that Germany is ready to take its startup landscape to the next level and establish itself globally as a leading innovative force. Our Startup Port network plays its part in the Hamburg metropolitan region.The most important facts in brief:
- The WIN initiative is really good news for our start-ups and for Germany as a business location. It is intended to mobilize private investment in venture capital (money invested in newly founded companies), start-ups and innovation technologies.
- Growth financing is of crucial importance for Germany’s and Europe’s innovative strength. Especially in times of shifting geopolitical power relations, strengthening our competitiveness and technological sovereignty is of central importance. In particular, young and dynamic companies are seen as drivers of innovation.
- The federal government has continuously improved the framework conditions for startups in Germany in recent years, including through the rapidly developed startup strategywhich was adopted in the summer of 2022. Around 80 percent of the 130 measures have now been implemented and are already helping start-ups in a very concrete way, from new funding programs and advice to practical laws, talent recruitment, diversity and the strengthening of founders to spin-offs from science and real laboratories.
