The German government will provide business angels with an investment subsidy in a bid to support the country’s innovative young startups. Chancellor Angela Merkel announced the new measures following a meeting this week of senior government officials and representatives from business and research.
The meeting at the Chancellory in Berlin on Monday, dubbed the Innovationsdialog (Innovation Dialogue), resulted in an agreement to strengthen the international orientation of Germany’s policy on innovation.
Merkel said: “We want to mobilise more venture capital for German companies in order to further strengthen our position in international innovation competition.”
The new is the latest effort from the German government to help the country’s booming startup industry following the announcement of its High Tech Startup Fund II last October. There are also plans to consider introducing tax breaks for venture capital firms before the government’s summer recess.
Also on the agenda at the Innovationsdialog was how technology and service innovation can play an important role in encouraging economic growth and tackling unemployment.
The announcement comes as many within Germany’s startup scene are starting to ask why the authorities are not doing more to encourage entrepreneurs. Last week, 6Wunderkinder founder and CEO Christian Reber revealed how the Mayor of Berlin, Klaus Wowereit, brushed him off after he requested a meeting between officials and high-profile figures form the startup scene to seek more support for innovation. Reber argued that startups have created more than 10,000 new jobs and have attracted millions in international investments.