Start-ups as well as small or medium-sized enterprises (SMEs) often have problems raising the necessary capital for larger or high-risk projects. Credit negotiations with the principal bank often fail due to a lack of collateral. Particularly in the case of start-ups, it is often difficult for banks to assess the company's chances of success, especially when introducing new products or processes. This is where investment companies or private financiers step in. They offer equity capital without the usual bank collateral, i.e. equity capital in the form of contributions as share or nominal capital, but also, for example, as a silent partnership. To provide an additional incentive for venture capital companies to invest in small and medium-sized enterprises, the Bayerische Garantiegesellschaft (BGG) offers counter-guarantees from the federal government and the state of Bavaria.
Equity or venture capital is often associated with technology-oriented ventures. However, other medium-sized companies and founders also have a corresponding need, e.g. for financing start-ups, larger investments in the course of expansion, financing company succession, MBOs and MBIs, innovation projects or restructuring.
There are now a large number of private equity companies in Germany. To find out which company is suitable for which project, please refer to the information provided by the Bundesverband Deutscher Kapitalbeteiligungsgesellschaften (German Private Equity and Venture Capital Association) in Berlin:
Federal Association of German Private Equity and Venture Capital Companies
German Private Equity and Venture Capital Association e.V.
Residenz am Deutschen Theater
Members of this federal association are also the two capital investment companies in which LfA Förderbank Bayern holds shares:
Bayerische Beteiligungsgesellschaft mbH
Bayern Kapital GmbH