Investment & Fund Management

The LfA Förderbank Bayern and the European Investment Fund (EIF) have expanded their partnership to enhance venture capital availability for start-ups in Bavaria. The LfA-EIF Facility, a fund of funds established to improve financing conditions for innovative companies, received an additional €25 million from both LfA and EIF, increasing its total to €250 million. This initiative aims to broaden access to venture capital for small and medium-sized technology companies in the region.

Since its inception in 2009, the facility has committed to over 40 funds based in Bavaria, resulting in investments in more than 100 Bavarian companies. The EIF's Chief Executive, Alain Godard, emphasized the importance of this commitment in facilitating access to finance for businesses, particularly in light of the ongoing COVID-19 pandemic, which has intensified the need for robust venture capital support.

Bavarian Minister of the Economy, Hubert Aiwanger, noted that the LfA-EIF Facility has been instrumental in supporting many start-ups, addressing their initial financial challenges. The partnership has proven effective, with every €1 invested by the EIF generating €13 in additional capital for Bavarian companies, significantly enhancing the equity capital available to high-tech entrepreneurs in the region. This expansion of the fund is seen as a crucial step in sustaining the economy and supporting entrepreneurs during challenging times.