Brussels, 01/03/2001 (Agence Europe) - On 28 February, the European Commission authorised German to maintain its risk capital schemes in favour of small technology companies. This scheme offered private investors a guarantee for part of the funds that they place in research and investment projects in young companies that have a potential for rapid growth and job creation. Implemented by two State banks, the Kreditanstalt fur Wiederaufbau (KfW) and the Deutsche Ausgleichsbank (TBG), this scheme should free EUR 192.5 million to achieve a total participation volume of EUR 2.7 billion by the end of 2002.. The risk capital for the small technology companies - Beteiligungskapital fur klein Technologieternehmen (BTU)" should contribute towards stabilising and developing the German risk capital market for the start-up financing of these kinds of companies.
Though the German market for start-up risk capital has extensively developed over the last years, the Commission feels that it is fragile. The present aid scheme constitutes the continuation of efforts deployed by the German authorities to ensure the expansion and stabilisation of this market, but it has been adapted to the stage of development it has reached. It is thus that "Germany limited in particular the target group to small technology companies up to five years and decreased the aid intensity to these small technology companies for investments and research and development projects', added the Commission.