BERLIN, Sept. 17 (Xinhua) -- The German government and its partners have pledged to invest around 12 billion euros (13.3 billion U.S. dollars) in venture capital by 2030 to support young startups for their innovations, according to a joint declaration made at a startup summit here on Tuesday.
The declaration of intent, signed by the government, the state development bank KfW and other companies, is part of an initiative aimed at promoting startups and increasing private venture and innovation capital in Germany.
German startups have long faced difficulties in securing capital during their growth phase. The Federal Ministry of Finance stated that these companies, as an innovation driver of the German economy, require sufficient financing and sustainable structures to grow into competitive companies and to contribute to employment, prosperity and long-term innovation in the country.
Germany's venture capital market is significantly smaller in international comparison, said Finance Minister Christian Lindner. He noted that many German investors are cautious, which is why the new initiative is so important.
"The initiative is intended to mobilize private investments in venture capital, startups and innovative technologies," said German Chancellor Olaf Scholz, emphasizing that it would work to strengthen Germany as a business location.
In the first six months of the year, 1,384 new startups were founded in Germany, a 15-percent increase compared to the second half of last year. Currently, more than 520,000 people are employed by such companies. (1 euro = 1.11 U.S. dollar)
