Germany and four other EU countries want to close the financing gap between young and innovative high-tech companies and large foreign funds such as those from the United States.
To this end, the German government alone is providing €1 billion ($1.07 billion), the Finance and Economy Ministries and the state development bank KfW announced.
Together with four other EU states, an agreement on a European Tech Champions Initiative was signed in Brussels.
Promising European companies are to be provided with growth capital for late financing rounds, it said. This should reduce the dependence on foreign investment.
A gap is to be closed, according to German Finance Minister Christian Lindner. The goal is for European "tech champions of tomorrow" to play on the international stage and secure Europe's competitiveness.
German Economy Minister Robert Habeck stressed that start-up companies play a decisive role in the transformation of an economy towards climate neutrality.
In addition to Germany, France, Spain, Italy and Belgium as well as the European Investment Bank Group are participating in the initiative. They plan provide a total of up €3.75 billion, including the €1 billion from Germany.
A total of €10 billion has been earmarked in the federal government's "future fund" covering the period up to 2030.
Sources in the Ministry of Finance said that up to now, the largest and most promising European companies have mostly only received foreign growth capital for very late financing rounds.
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