With an investment from the European Investment Bank (EIB), additional venture capital from Wachstumsfonds Bayern 2 will be available for innovative, technology-driven startups in Bavaria, Germany, during their growth stage. The fund’s resources will increase to €165 million thanks to the EIB’s €50 million commitment, guaranteed by the European Fund for Strategic Investments (EFSI), which was already agreed on back in March.
Wachstumsfonds Bayern 2 provides financial support to Bavaria’s innovative start-ups, for example in robotics, digitisation, industrial manufacturing processes, artificial intelligence or life sciences, enabling them to maintain their early-mover advantage, scale up their business and continue their expansion. The Bavarian fund has for instance invested into OroraTech, a company developing a nanosatellite-based early warning system for wildfires, and German Bionic Systems, developing robotic exoskeletons to help reduce the risk of musculoskeletal disorders for employees in physically demanding roles, such as those working in warehouses.
Executive Vice-President for An Economy that Works for People, Valdis Dombrovskis, said: “I am glad that the Investment Plan for Europe is supporting Bavaria’s Wachstumsfonds Bayern 2. This will offer venture capital to start-ups in areas like life science and medical technologies so they can grow and consolidate their operations. We need to support innovative ideas that are a key source of jobs and sustainable growth in Europe. This is forward-looking financing in action.”
The European Fund for Strategic Investments (EFSI) is the main pillar of the Investment Plan for Europe, which has so far mobilised €546.5 billion of investment, supporting over 1.4 million SMEs and start-ups across the EU. The press release is available online.