Bundestag Debates Standortfördergesetz to Address Germany's Start-up Financing Gap

The German Bundestag is currently debating the Standortfördergesetz, a legislative proposal aimed at improving the start-up ecosystem by reducing bureaucracy and increasing investment incentives. According to Tagesschau, this law targets a significant financing gap in the start-up sector, estimated at around 30 billion euros annually. Gregor Demmer, founder of the start-up Vereinsticket, underlines the difficulty for start-ups to secure intermediary financing between initial seed funding and later-stage breakthrough capital, emphasizing the need for improved financial support to sustain growth.

The Standortfördergesetz proposes allowing investment funds to participate in venture capital funds and introduces tax incentives to stimulate investments in infrastructure and technology projects, which are vital for start-up scalability. Despite Germany's strong talent pool and research infrastructure, experts like Christoph Stresing voice concerns over the country's comparatively lower success in translating innovation into thriving businesses, especially when contrasted with the United States.

Demmer calls for more private investors willing to assume higher risks amid challenges posed by emerging technologies such as artificial intelligence. He remains optimistic that the legislative changes will foster a more favorable environment for start-ups by mid-2026. The law’s focus on easing bureaucracy and boosting financial flow aims to position Germany more competitively on the global start-up stage.