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.