This new funding programme is part of the German Federal Government’s EUR 2 billion assistance package for start-ups and small enterprises, and managed together with the European Investment Fund (EIF).
Main purpose: This new funding programme forms part of the German Federal Government’s EUR 2 billion assistance package for start-ups and small enterprises, announced by the Federal Ministry for Economic Affairs and Energy and the Federal Ministry of Finance.
It is deployed in two pillars and focuses in particular on ensuring access to finance for businesses in response to the coronavirus crisis:
- The first pillar – the Corona Matching Facility – the EIF and KfW Capital in cooperation with KfW support VC funds targeting start-ups and young growth enterprises located in Germany and having a sustainable business model. The aim is to enable such companies to continue their growth despite the current period of hardship. The EIF leverages its existing partnerships in the market to ensure a rapid pace of delivery, as detailed in the initiative’s terms.
- The second pillar makes available further options for securing financing for start-ups and small businesses that have no access to the CMF. This pillar is deployed by KfW in further cooperation with the federal states, including their promotional institutions (Landesförderinstitute). Hence, the EIF only participates in the first pillar, CMF as described above.
Programme:German Corona Matching Facility (CMF) - German Federal Government’s assistance package for start-ups and small enterprises.
Institution: EIF – European Investment Fund and German Federal Government.
Who is eligible: Consortium of individual - private VC fund managers with a German portfolio to whom the following applies are eligible to apply (Independent German or European VC fund manager):
- European VC fund managers
- Independent VC fund managers (no corporate VCs, family offices)
- Successful due diligence by KfW Capital or the EIF
- Successful KYC & governance check
- Fund terms in line with market standard
- Closed-end funds and fund currency according to KfW Capital / EIF guidelines
- Private investors >50% of fund volume in funds to be supported by CMF
- No single majority shareholder
- Newly established SPVs:
- No other GPs / VC funds as investors
- State aid conformity