Bavarian Government flips the switch on €200 million ScaleUp fund

dan@tech.eu
In a strong show of support for the local ecosystem, the Bavarian State Government has announced a new €200 million scale-up fund to be managed by Bayern Kapital, a wholly owned subsidiary of the LfA Foerderbank Bayern (Bavaria's development bank). The fund is targeted at Bavarian-based growth stage startups focusing on life sciences, software and IT, medical technology, mobility, and new materials and environmental technology, and will have an average ticket size between €10 and €25 million per investment. The ScaleUp-Fonds Bayern has been put in place specifically to help realise larger funding rounds for local startups, particularly during the critical, and often capital-intensive, scale up phase. Bavarian Minister of Economic Affairs Hubert Aiwanger comments, “To scale internationally, Bavarian high-tech companies require large-volume financing rounds to boost their growth. With the ‘ScaleUp-Fonds Bayern’, there is now an effective financing instrument for that.” By throwing down a relatively large number, the new fund is aiming to attract co-investors of the same magnitude, making €20 to €50 million and more rounds a possibility for fledgling Bavarian companies. “The fund will only act as a co-investment partner, which ensures that private investors will also provide capital for each investment in addition to state-provided capital. Our engagement here will strengthen not only the individual businesses, but also Bavaria as a technology hub,” commented Dr. Otto Beierl, Chairman of the Board of the LfA Förderbank Bayern. In addition to the €200 million scale-up fund, the Bavarian government has also released a €50 million to be utilised as a fund of funds. This initiative will see  up to €10 million per investment in venture capital and venture debt funds.
Share this:
Share on linkedin
Share on facebook
Share on twitter

Get exclusive access to news, data and actionable insights on the European Tech innovation ecosystem(s)

By subscribing to Tech.eu, you gain instant access to curated European technology news, market intelligence and interviews with leading startup founders, investors and more. Sign up now in under a minute to deepen your knowledge on the European Tech innovation ecosystems on a daily basis.