Treibstoff Venture Capital (Fuel Venture Capital): Fueling innovation and economic growth
There is a lack of venture capital (VC) in Germany, especially in the growth phase of newly founded companies. As a result, the necessary capital to establish successful companies from innovative business models is lacking. In view of the international competition between technology locations, this lack weakens the innovative power of the European economy and hinders sustainable growth. The new study "Fuel Venture Capital: How we fuel innovation and growth" by Roland Berger, the Internet Economy Foundation (IE.F) and the Bundesverband Deutscher Kapitalbeteiligungsgesellschaften e.V. (Association of German Private Equity Firms). (BVK) analyses existing investment barriers to venture capital and explains how these can be overcome.
There is a lack of venture capital (VC) in Germany, especially in the growth phase of newly founded companies. As a result, the necessary capital to establish successful companies from innovative business models is lacking. In view of the international competition between technology locations, this lack weakens the innovative power of the European economy and hinders sustainable growth. The new study "Fuel Venture Capital: How we fuel innovation and growth" by Roland Berger, the Internet Economy Foundation (IE.F) and the Bundesverband Deutscher Kapitalbeteiligungsgesellschaften e.V. (Association of German Private Equity Firms). (BVK) analyses existing investment barriers to venture capital and explains how these can be overcome.
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5<br />
What needs to be<br />
done now<br />
The initiative should work toward putting in place<br />
everything that academics <strong>and</strong> students need to turn<br />
their <strong>innovation</strong>s into business models <strong>and</strong> get their<br />
startups ready for market. They need suitable spaces<br />
<strong>and</strong> buildings to work in, they need support with finding<br />
the right people for their projects <strong>and</strong> they need<br />
help structuring their company <strong>and</strong> writing business<br />
plans, etc.<br />
The education system must be supported as well.<br />
Schools need to teach basic business principles to all<br />
young people. Universities must offer entrepreneurship<br />
as a compulsory subject for all students on business<br />
degrees <strong>and</strong> on courses of study in STEM subjects<br />
at the very least, <strong>and</strong> it should be available to students<br />
of other faculties as an elective, too. Successful entrepreneurs<br />
<strong>and</strong> venture capital investors need to be<br />
brought on board as lecturers to inspire the students.<br />
Graduates should never come out of a course of study<br />
asking, “Why do a startup,“ but rather, „Why not?“<br />
The tools are ready <strong>and</strong> waiting,<br />
they just need to be used. All of<br />
them at once. Then it will be<br />
possible to mobilize more venture<br />
capital than before. And the mobilization<br />
will be permanent. Because<br />
in applying all of the levers at our<br />
disposal, not only will we be able<br />
to break the vicious cycles of insufficient<br />
venture capital in Germany,<br />
we will actually be able to turn them<br />
around into virtuous cycles that<br />
enable more capital formation <strong>and</strong><br />
help businesses to scale. →I<br />
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