Federal Economics Ministry and European Investment Fund launch new Business Angels Fund
The Federal Ministry of Economics and Technology (BMWi) joined with the European Investment Fund (EIF) at today's German Business Angels Day in Frankfurt to present what is to be known as the "European Angels Fund" (EAF). The new fund is part of the Federal Government's package to support the financing of venture capital for young, innovative companies. The fund is designed to increase the involvement of business angels and other non-institutional investors in the financing of young, innovative companies.
Hans-Joachim Otto, Parliamentary State Secretary in the Federal Ministry of Economics and Technology, said: "Improved venture capital financing helps to foster innovative and young companies and provides an additional stimulus for growth and employment in Germany. Innovative companies play a decisive role in ensuring that German business remains competitive. I am delighted that the European Investment Fund has decided to launch the European Angels Fund as a pilot project in Germany. The Fund will play an important part in bridging the shortfall in financing for high-tech companies."
Richard Pelly, Chief Executive of the European Investment Fund, said: "We want to use the European Angels Fund to stimulate this market segment in a targeted and sustainable way by co-financing business angels and family offices. In today's tough economic situation in Europe, Business Angels represent an important source of finance for new and innovative small and medium-sized enterprises."
The new fund is one of several measures aimed at boosting venture capital. Chancellor Merkel had announced an investment allowance for Business Angels as early as 27 February. The Federal Government shall assess before the summer break how the tax conditions for venture capital can be improved during the current legislative term.
The European Angels Fund was developed in close co-operation with the Business Angels Network Germany (BAND) and is financed equally by the European Investment Fund (EIF) and the ERP Special Fund administered by the Federal Ministry of Economics and Technology (BMWi) with a total of 60 million euros.