M&A COVID-19 Wire - Part 4

April 9, 2020: Please find another M&A update due to the COVID-19 pandemic

1. State Aid

a) State Aid for Start-Ups

• The German government plans to launch a special package of measures for start-ups with a volume of EUR 2 billion. Venture capital financing is to be expanded so that, despite COVID-19, there will still be sufficient financing rounds for promising innovative start-ups from Germany. The Federal Government is thus supplementing the existing support programs with a package of measures that is specially tailored to the needs of start-ups.
• The package of measures should include the following elements in particular:
• • Public venture capital investors at fund of funds and fund level (e.g. KfW Capital, European Investment Fund, High-Tech Gründerfonds, coparion) will be provided with additional public resources in the short term to be used for co-investment together with private investors for financing rounds of start-ups.