MUNICH According to a recent study conducted by the auditing and consultancy firm Rödl&Partner, Bavaria is the most attractive location in Germany for capital investments in small and medium-sized companies. "I am pleased that Bavaria is defending its leading position in terms of private-equity investments. In the light of the global competition for financial investors and the impact of the crisis in the financial market, this cannot be taken be granted. Bavaria has succeeded in creating attractive framework conditions for rapidly expanding small and medium-sized enterprises. It therefore comes as no surprise that financial investors are particularly active here", commented Bavaria’s Minister of Economic Affairs, Emilia Müller.
The Minister continued to say that Bavaria was promoting a number of initiatives of its own to firmly establish venture capital financing in Bavaria. The new cluster fund concept with a volume of € 70 million was a strong incentive inducing private venture-capital funds to engage in Bavaria. "What is more, with our partners BayBG and S-Refit we have only recently launched two new ERDF risk-capital funds with a volume of € 30 million. I am therefore confident that in Bavaria we will be able to not only maintain our leading position in Germany, but even enhance it", Müller added.
So far, the German investment companies have by their own account been little affected by the financial crisis. According to the German Private Equity Barometer of KfW and the Bundesverband deutscher Kapitalbeteiligungsgesellschaften (German Private Equity and Venture Capital Association), however, the business climate has deteriorated for financial investors specializing in young enterprises. And the ‘Business Angels’, most of which inject amounts of less than € 200,000 in very young companies, are also proving more reluctant to invest. "For the future, I will continue to rely on Bavaria’s locational advantages such as its excellent scientific environment, the Bavarian innovation culture and its start-up climate", Müller underlined.
Source: Invest in Bavaria
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