The first state programme from RegioInnoGrowth is launching with “InnoGrowth BW” from L-Bank

Since 15 August 2023, the German Federal Government and KfW have been offering “RegioInnoGrowth”, a new component of the Future Fund. The intent is primarily to use equity and equity-like funds to finance stronger growth for start-ups and small, innovative SMEs, which are generally not the focus of venture capital funds. Cooperation with the promotional institutions of the states creates tailor-made financing solutions for the region. Companies can receive up to EUR 5 million each, which is granted in the form of mezzanine capital or subordinated loans, for example.

KfW has now been able to enter into the first concrete cooperation at state level with L-Bank in Baden-Wuerttemberg. On 10 October 2023, both sides signed a global loan agreement for EUR 8 million to finance the “InnoGrowth BW” state programme. The programme is primarily intended to support start-ups in the early phase and innovative medium-sized enterprises. The Federal Government assumes up to 70% of the risks via KfW; the remaining shares are held by the State of Baden-Wuerttemberg, associated intermediaries and private investors. A total of EUR 75 million is thus available for the companies.

The new programme offers individually tailored support for innovative companies and start-ups that are denied access to regular banks or traditional VC companies and therefore significantly expands the promotional offer for the target group in Baden-Wuerttemberg.

With the global loan agreement now concluded, only the funding requirements for the federal share in the starting year 2023 are reported. A total of EUR 45 million is to be made available by the end of “RegioInnoGrowth”, which is currently planned on 14 August 2026.

InnoGrowth BW