Germany has created a $ 12 billion fund to accelerate the growth of tech startups. The country sees these companies as the key to creating jobs for the future. The money will be used to solve the difficulties that startups face when trying to raise venture capital, Bloomberg reported.
“Startups are engines of structural change,” Economy Minister Peter Altmaier told reporters in Berlin on Tuesday (June 22). âThey create jobs and provide the basis for future prosperity and growth in Germany and Europe. “
German Finance Minister Olaf Scholz said female founders are under-represented in tech startups, an issue that should be addressed quickly. Scholz is a candidate for the Social Democratic Party to succeed Christian Democrat Chancellor Angela Merkel.
German startups like FinTech N26, air taxi manufacturer Lilium and travel platform Omio raised about $ 4.5 billion last year. However, the biggest rounds were led by foreign investors, according to consultancy firm EY.
Investor interest in European technology companies has increased this year. Startups on the continent have raised more venture capital in the first six months of 2021 than in all of last year, CNBC reported Friday (June 18). Data provided by Dealroom showed that startups in Europe raised $ 60.9 billion in the first six months of this year, surpassing the total recorded in 2020. In fact, the number of venture capital deals announced so far ‘Now is about half of the number recorded in 2020. Dealroom figures show that around 2,700 funding rounds have been inked so far in 2021, up from 5,200 last year.
Among the biggest rounds of funding are Swedish company Buy Now, Pay Later (BNPL) Klarna ($ 1.6 billion over two rounds), German stock trading app Trade Republic ($ 900 million in May) and Checkout.com, a UK payments provider that launched off 2021 with a funding round of $ 450 million.