The City of Hamburg announced Wednesday (September 27, 2023) a scheme totalling EUR 69 million for start-ups and SMEs from January 1, 2024 through mid-2026. The funds will be combined with German government funding and made available as venture capital.
Risk capital for novel business ideas
“Hamburg has a wealth of innovative companies that can add new momentum to our economy. We offer ambitious entrepreneurs the chance to advance their business ideas to make Hamburg even stronger and more resilient as a business centre,” said Dr Melanie Leonhard, Senator for Economics and Innovation. The “Venture Capital Co-Investment Fund” will give innovative start-ups venture capital in larger financing rounds. Funds between EUR 1 million and EUR 7 million per company are available provided that private investors play a major role in the respective funding round. SMEs can avail of EUR 250,000 and EUR 2.5 million per company, if larger silent partnerships are forged via BTG Beteiligungsgesellschaft Hamburg mbH (BTG Hamburg), who will managed the schemes.
More impetus for Hamburg as a business centre
“The two new funding instruments close funding gaps and add momentum to Hamburg as a financial centre at exactly the right time,” said Dr Andreas Dressel, Senator for Finance. “We are expanding funding by a combined EUR 70 million in state and federal funds. Unlike other federal growth initiatives, Hamburg can afford the 70/30 funding rate,” he added. The funds stem from the “Regio Inno Growth” scheme to boost start-ups and SMEs that do not qualify for venture capital. The City of Hamburg will provide around EUR 20.7 million (30 per cent) while the German government will pay EUR 48.3 million (70 per cent).
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