EUR 5 million for small technology-oriented companies
Potsdam. BFB Frühphasenfonds Brandenburg, the fund set up by Investitionsbank des Landes Brandenburg (ILB) on behalf of the Ministry for Economics and European Affairs in spring 2010, has received an injection of capital that increases its resources by EUR 5 million to a total of EUR 25 million. The BFB Wachstumsfonds Brandenburg fund that was also set up by MWE and ILB had previously received additional capital of EUR 7.5 million at the start of this year.
75 percent of the investment company’s funding is provided by the European Regional Development Fund (ERDF). This capital injection will provide additional seed and start-up companies in the North-East region with the opportunity to each receive up to EUR 1 million in capital through open-ended equity investments in conjunction with subordinated loans. A contractual commitment for the resources themselves must be in place by the end of 2014.
The original EUR 20 million fund volume of the Frühphasenfonds has already been used to provide financing to 18 companies. The manager of the Frühphasenfonds is bmp Beteiligungsmanagement AG, which is providing the required national co-financing of the additional resources in the amount of EUR 1.25 million for the first time.
Ralf Christoffers, Minister for Economic and European Affairs of the State of Brandenburg, said: “With the resources of the Frühphasenfonds having been largely exhausted, we have succeeded in adding a further EUR 5 million so that young and innovative companies from North-East Brandenburg can have the opportunity to obtain financing from the fund. This also closes the gap to the start of the successor programme next year. 2015 will see the launch of the new Beteiligungsfonds, which will again receive funding from the European Regional Development Fund to be distributed to technology-oriented companies in the seed, start-up or growth phase throughout the State of Brandenburg.”
Gabriela Pantring, member of the Management Board of the ILB development bank, commented on the successful increase in the fund volume: “The positive response and the promising development of the companies already financed by our equity funds have strengthened the resolve of the Ministry of Economics and ILB to expand the offer for small companies in the form of additional resources. The increase in the Frühphasenfonds fund to EUR 25 million will allow us to continue to support young companies in developing innovative projects and products through to market maturity and initial commercial success. At the same time, we are also seeking to secure the financial basis for the successful settlement of further companies and the creation of sustainable jobs in the State of Brandenburg.”
“Over the past four years, we have provided financing and intensive content-oriented support for 18 companies that have since become prominent names in the start-up scene, including iversity.org, komoot and flightright. Thanks to our more than 17 years of experience in early phase financing, our strong deal flow and our regional expertise, we are confident that we will be able to attract further innovative, promising companies with considerable growth potential to the Frühphasenfonds even within the relatively short timeframe,” commented Oliver Borrmann, CEO of bmp Beteiligungsmanagement AG.
Further information on ILB can be found at www.ilb.de Further information on bmp Beteiligungsmanagement AG can be found at www.bmp.com Further information on Frühphasenfonds Brandenburg can be found at www.fruehphasenfonds-brandenburg.de
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