Investment & Fund Management
The European Investment
Full Credential Description
The European Investment Fund (EIF) and KfW Bankengruppe entered into a significant agreement under the COSME programme, aimed at enhancing support for start-ups in Germany. The specific challenge faced was the limited access to finance for start-ups and young small enterprises, which often struggle to secure necessary funding to grow and create jobs.
To address this issue, the EIF provided a guarantee that enabled KfW to offer EUR 1 billion in loans over two and a half years, specifically targeting over 15,000 start-ups through KfWs StartGeld programme. This tailored solution was designed to facilitate additional financing at favorable conditions, thereby directly addressing the financing gap that many new businesses encounter.
The quantifiable results of this initiative are substantial. The agreement is expected to significantly boost the growth of start-ups in Germany, contributing to job creation and economic development. European Commission Vice-President Jyrki Katainen highlighted that this initiative would empower individuals looking to expand their businesses, thereby enhancing local employment opportunities. The collaboration between EIF and KfW not only exemplifies a successful model for financing start-ups but also reflects a broader commitment to fostering innovation and entrepreneurship within the European Union.