Germany fast-tracks start-up funding with bold new strategy
The German government is pushing ahead with plans to boost support for start-ups and growing businesses. A new strategy aims to speed up funding and expand employee ownership schemes. Officials expect cabinet approval by this summer. A draft of the strategy is currently under review by multiple ministries. Further talks between departments will take place in the coming days to finalise details.
Under the plan, processing times for the Exist programme will be slashed to just six weeks. The state-backed Invest funding scheme will also continue beyond its original 2026 end date.
The government is also looking to broaden the role of the Federal Agency for Disruptive Innovation (Sprind). Its funding tools could soon back projects in security and defence, marking a shift in the agency’s focus.
To encourage employee investment, the tax-free allowance for stock ownership plans (ESOPs) will increase. The current €2,000 limit will rise to €5,000, making it easier for workers to hold shares in their companies. If approved, the strategy will cut red tape for start-ups seeking public funds. Faster decisions and higher tax incentives for employee shares are set to take effect. The changes will also extend support for innovation in new sectors, including defence.
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