Supporting local startups as a priority for Germany
The German government has presented a fund whose main purpose is to support local startups. Its volume amounts to 30 billion euros. According to the authorities, the fund will help make the country more attractive for new innovative projects.
The government is actively cooperating with private investors to create the fund. 10 billion euros for the project was allocated by the state bank KfW. The fund is aimed primarily at startups that develop modern solutions in the field of artificial intelligence, and sustainable mobility technologies. Particular attention will also be paid to companies that provide climate solutions and specialize in the application and production of hydrogen. The government hopes that this initiative will improve the country’s climate for innovation and increase investment in future technologies.
German authorities are concerned that the local economy still lags behind other nations in terms of venture capital investment. Most of these investments in the global market come from companies in the United States. This factor influences the fact that many startups move to the United States for further business development. This situation does not suit the German government, because a lot of talented specialists leave the country. As a result, there is not only an outflow of important personnel but also a slowdown in the development of local technology and innovation.
The authorities plan to change this course of things and make Germany more attractive to startups in terms of implementing their ideas and scaling their businesses. The initiative is aimed at the long-term perspective and will be extended in the future not only to the German market but also to the EU as a whole.
The German government is also trying to attract as many foreign specialists as possible to contribute to the development of the technology sector. As part of this, the amount of tax-free employee stock options will soon be increased. In addition, more opportunities for remote work are being considered. For example, the authorities are working on amendments to labor laws and the tax system so that companies can hire foreign employees without having to relocate them.
Despite such ambitious plans of the German government, some experts are skeptical about the statements of the authorities. They believe that many of these items may remain only on paper, or their implementation will take too long. Experts believe that urgent measures must be taken today, otherwise Germany will continue to lag behind other developed countries, and the outflow of talent will increase. So far, the state cannot boast of favorable conditions for the development of new projects.