The German states of Saxony and Lower Saxony have launched new regional programmes aimed at boosting innovation among start-ups and small to medium-sized enterprises (SMEs). The initiatives, named "Innovation Capital Saxony" and "InnoGrowth Lower Saxony," are collaborations between KfW, a government-owned development bank, and regional banks Sächsische Aufbaubank and NBank.
These programmes are part of the broader federal initiative "RegioInnoGrowth," which provides risk and equity capital as part of the Future Fund established by the German Federal Government and KfW. Funding for these programmes is sourced from Sächsische Aufbaubank, NBank, private investors, the Future Fund, and the ERP Special Fund.
The regional programmes offer equity financing ranging from one to five million euros. They target young companies and growth-oriented SMEs with innovative digital, environmental, or social business models based in Saxony or Lower Saxony.
"RegioInnoGrowth strengthens the partnerships between KfW and the German federal states: Together with the states and their promotional institutions, KfW supports the regional presence and innovative strength of local companies," according to a statement on behalf of KfW. The goal is to attract private investment to enhance regional business activities and improve the competitiveness of German SMEs.
With these additions, KfW now collaborates with eleven federal states under the RegioInnoGrowth component of the Future Fund.
KfW continues to support SMEs through various promotional programmes on behalf of the German Federal Government.