An additional 115 million Euro for Bavaria’s start-ups: The successful growth fund ‘Wachstumsfonds Bayern’ is reissued
Landshut / Munich, Germany. June 30, 2020. The successful growth fund ‘Wachstumsfonds Bayern’, initiated by the Bavarian Ministry of Economic Affairs, Regional Development and Energy, will be reissued with a financially strong successor fund. Equipped with 115 million Euro, the ‘Wachstumsfonds Bayern 2’ will once more be managed by Bayern Kapital, the venture capital organisation of the Free State of Bavaria and a wholly-owned subsidiary of the Bavarian LfA Förderbank, Bavaria’s development bank. Capital from the reissued growth fund will be used to support innovative, technology-oriented start-ups in Bavaria in successfully completing large-volume financing rounds in cooperation with private investors.
“We have already supported many innovative companies with the ‘Wachstumsfonds Bayern’. Now, with the ‘Wachstumsfonds Bayern 2’, we are continuing this success story together with Bayern Kapital: Through growth financing we help young businesses to successfully place their own products in the market and, over the long term, develop into successful, internationally competitive players”, says Hubert Aiwanger, Bavarian State Minister of Economic Affairs, Regional Development and Energy.
The track record of the first growth fund speaks for itself: Over the past five years, Bayern Kapital has invested a total of 70 million Euro of the fund’s available capital in 23 start-ups and – through cooperation with other domestic as well as foreign investors, for example venture capitalists or family offices – mobilized another 300 million Euro of private capital for Bavaria’s founders.
“Particularly in the technology sector, companies need for their long-term success not only time to develop, but most importantly financial support. Internationalization strategies and the entry into new markets, but also clinical trials and the development and diversification of their own product range require capital, which often proves immensely challenging for young businesses. Which is why we are happy about being able to continue to support Bavaria’s innovation leaders during large-volume financing rounds through the ‘Wachtumsfonds Bayern 2’”, says Roman Huber, Managing Director of Bayern Kapital.
“Whether Robotise’s service robots, Blickfeld’s high-resolution LiDAR sensors, ProGlove’s smart glove for production process optimization, GNA Biosolutions, which is currently making great strides in developing a coronavirus quick test, or Numares AG, which offers diagnostic tests based on NMR technology: With our first growth fund, we have in recent years been able to support a broad range of future-oriented companies in completing larger financing rounds together with both domestic and international investors”, says Dr. Georg Ried, also Managing Director of Bayern Kapital.
The reissued growth fund of 115 million Euro – 15 million Euro more than the first issue – can provide Bavaria’s innovation leaders with investment volumes of between two and, in certain cases, up to ten million Euro per investor, depending on the individual situation. The general prerequisite for an investment by the ‘Wachstumsfonds Bayern 2’ is that one or more private investors commit themselves to the investment on the same terms. Not only does this present start-ups with the prospect of larger capital volumes, but also with beneficial specialist expertise and with access to the regional and international network of the investment partners.
“Throughout Bavaria, its founders are creating exciting and innovative business models – in Nuremberg and Munich as well as in Augsburg, Würzburg, Regensburg and beyond. While mid-sized companies are often able to finance themselves through the support of banks, young businesses are frequently also dependent on state-funded financing instruments, not only during times of economic stagnation, but especially during growth phases. Of course, not every start-up is ultimately successful, but without targeted support, many great ideas would fall by the wayside at crucial moments. Therefore, the ‘Wachstumsfonds Bayern 2’ is an important tool for driving the long-term economic success of Bavaria’s technology leaders”, says Dr. Otto Beierl, Chairman of the Board of LfA Förderbank Bayern.
Growth financing for high-tech companies ultimately benefits the whole of Bavaria: Some 1,700 high-skill new jobs as well as many innovative business models ‘Made in Bavaria’ in various future-oriented industries have been created throughout Bavaria thanks to just the first growth fund.
Hubert Aiwanger, Bavarian State Minister of Economic Affairs, Regional Development and Energy: “The ‘Wachstumsfonds Bayern 2’ is an important component of our economic policy strategy. In the long term, our goal is to create many strong clusters for economic growth in all Bavarian regions, while at the same time providing targeted support to future-oriented industries. With this approach, we secure the jobs of today and also create the career prospects of tomorrow.”
About Bayern Kapital:
Bayern Kapital GmbH, based in Landshut, was founded on the initiative of the Bavarian government in 1995. It is a wholly-owned subsidiary of the Bavarian LfA Förderbank . As the venture capital organisation of the Free State of Bavaria, Bayern Kapital provides equity capital financing for young, innovative technology businesses and its founders in Bavaria. Currently, Bayern Kapital manages 13 investment funds with a total volume of around 500 million Euro. So far, it has invested roughly 320 million Euro in more than 275 innovative, technology-oriented companies in various sectors including life science, software & IT, materials and new materials, nanotechnology and environmental technology. In this way, more than 7,500 long-term jobs in sustainable companies have been created in Bavaria. www.bayernkapital.de
Press Contact Bayern Kapital:
IWK Communication Partner
Andreas Klein / Dominik Neumüller
+49. 89. 2000 30-30