The billion-euro rescue package for German start-ups is in place!
In recent weeks the Federal Ministry of Economics and the Federal Ministry of Finance have worked
out the details of the package of measures together with KfW.
The aim of the package of measures is to provide German start-ups and small and medium-sized
enterprises with a sustainable business model with liquidity as quickly and efficiently as possible
in order to bridge the liquidity problems that arose during the Corona crisis.
The package of measures is based on two pillars:
Pillar 1: Corona Matching Facility ("CMF")
The Corona Matching Facility for start-ups can now be applied for from KfW by existing accredited
venture capital funds or newly created special purpose vehicles so that highly innovative and
promising start-ups remain attractive to investors even during the corona crisis. To achieve this,
venture capital funds will be additionally provided with public funds via the Corona Matching Facility
to ensure that start-ups can continue on their growth path even in the current situation. This
involves "matching" financing rounds of accredited private venture capital fund managers (GPs) with
public money. The GPs can decide between existing matching portfolio companies or between
portfolio companies and new investments. Under a co-investment and trust agreement, the
accredited GP is the trustee of the federal funds.
The public funds are provided through KfW Capital and the European Investment Fund (EIF).
Pillar 2: For start-ups and small and medium-sized enterprises
The second pillar is intended to provide financing for start-ups and small and medium-sized
enterprises that do not have access to the Corona Matching Facility (pillar 1). Here, venture capital
is to be made available in close cooperation with the countries via the regional development banks.