Meet the Person in Charge of Germany’s €10 bn Startup Program

07/28/21 • 29 min

📰 Startup & Tech News from Germany, Austria, and Switzerland

We are not only spending 10 bn € on startups, but we also have 5-6 bn € from older programs. ... in total 15 – 16 bn Euros

Thomas Jarzombek, MdB, Commissioner for Digital and Startups

The Commissioner for Digital and Startups

In this interview we talk to Thomas Jarzombek (https://www.linkedin.com/in/thomas-jarzombek-a4227183/) a member of the German Parliament Bundestag, also the Commissioner for Digital and Startups of Germany and in charge of the newly started 10 bn startup program. Thomas is a member of the CDU, Christian Democratic Union, the party of chancellor Merkel. (https://en.wikipedia.org/wiki/Christian_Democratic_Union_of_Germany). Thomas has also been an entrepreneur before he was an elected official. He started out with implementing Windows 95.

Note: In the name tag in the YouTube video, we shorted this to “Digital commissioner”, due to the available space.

How the money will be invested Note: There is a general election coming up in Germany on September 26th, 2021. This will lead to a new government since chancellor Merkel will retire. Therefore, another government may change this allocation.

We also invest in rocket technology. We have been looking at what Elon Musk does with SpaceX and adapted some of his strategies.

Thomas Jarzombek, MdB, Commissioner for Digital and Startups

Investing Indirectly (as LP)

The new investment program is looking to invest 50% together with private investors, who also chip in the other half.

The program will invest in European VCs, focusing on Germany. They are looking for VCs, investing in Germany approx. the money they receive from the program.

The largest single investment will be as LP of the European Investment Fund, which will get 3 bn Euros (https://www.eif.org/).

HTGF will start a 4th fund with money from the program. Look in our show notes below for the interview with the CEO of HTGF. They raise funds with half of the money coming from the Government and half from private investors, which include already household names like Bosch, BASF, B. Braun, Boehringer, Deutsche Bank, Deutsche Post DHL, Lanxess, RWE, SAP and many others.

We have patient money and I expect the money to be spent over the next 10 years.

Thomas Jarzombek, MdB, Commissioner for Digital and Startups

Investing Directly: Deep Tech Future Fund

The Deep Tech Future Fund (https://deeptech-future-fonds.de/) is aiming to commercialize innovations from Germany. They are even investing in startups directly, who do not have a business model yet, for example working in quantum computing.

2 bn Euros will be managed by KfW in discretionary accounts to set up specific investment vehicles and their subsidiary Coparion (https://www.coparion.vc/). Part of the money will be managed in discretionary accounts. These vehicles can invest directly in startups.

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We are not only spending 10 bn € on startups, but we also have 5-6 bn € from older programs. ... in total 15 – 16 bn Euros

Thomas Jarzombek, MdB, Commissioner for Digital and Startups

The Commissioner for Digital and Startups

Note: In the name tag in the YouTube video, we shorted this to “Digital commissioner”, due to the available space.

We also invest in rocket technology. We have been looking at what Elon Musk does with SpaceX and adapted some of his strategies.

Thomas Jarzombek, MdB, Commissioner for Digital and Startups

Investing Indirectly (as LP)

The new investment program is looking to invest 50% together with private investors, who also chip in the other half.

The program will invest in European VCs, focusing on Germany. They are looking for VCs, investing in Germany approx. the money they receive from the program.

The largest single investment will be as LP of the European Investment Fund, which will get 3 bn Euros (https://www.eif.org/).

We have patient money and I expect the money to be spent over the next 10 years.

Thomas Jarzombek, MdB, Commissioner for Digital and Startups

Investing Directly: Deep Tech Future Fund

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Support this podcast: https://anchor.fm/germanstartupnews/support

Previous Episode

(BONUS) German Institutional Funds Will Not Invest Big Bugs in Cryptocurrencies

This is another bonus episode, where we cover interesting – behind the scenes – development in the larger German-speaking tech space. Recently there was a wave of excitement sweeping across the crypto blogs, due to an update in the German Investment Law (https://www.gesetze-im-internet.de/kagb/). The reason: Investments of German institutional funds, since they could – theoretically – invest up to 20% in cryptocurrencies, starting on August 2nd, 2021. Joe gets together with Marco; a specialist lawyer and they talk about what is realistic. Instead of a large wave (theoretical max of ~400 bn €), as many blogs forecast, there may be only a small trickle (likely only millions over time).

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The Specialist

Marco Zingler (https://www.linkedin.com/in/marco-zingler-14b2a390/) is a seasoned lawyer, with almost 10 years of experience in capital markets legislation. He also holds a degree in Finance. He, therefore, spent most of his career as a specialist for regulatory and investment law, covering for example the changes to the new German investment Law.

Is your Startup in Need of A bank Account? - Affiliate Links

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The Interviewer

This interview was conducted by Jörn “Joe” Menninger, startup scout, founder, and host of Startuprad.io. Reach out to him: LinkedIn Twitter Email

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Find all the links and show notes here: https://www.startuprad.io/blog/bonus-the-german-institutional-funds-will-not-invest-big-bugs-in-cryptocurrencies/

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Next Episode

This Month in German Startups - Summer Wrap-Up (July, August, September) 2021

Welcome to This Month in German Startups in September 2021 by Startuprad.io - in a news recording with Chris (Back Home in New York) and me Joe, from Frankfurt am Main. We recorded this new episode on September 28th. Note that there is also another episode of our unicorn tracker, getting published along with this episode. Have a look. This will be a bit longer recording. Best get a snack and a drink right now. The summer was hot here in Germany in terms of startups, but not so much in terms of temperature. Since we have the weather out of the way. Let's talk startups:

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Find all links and show notes here: https://www.startuprad.io/blog/this-month-in-german-startups-summer-wrap-up-july-august-september-2021/

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