IBB Ventures complements venture capital offerings with impact VC funds

  • 30 million EUR for ecological, sustainable and social startups
  • Measurable social impact and financial return
  • The funds come from ERDF– Other people’s funds and returns IBB-fund

IBB Ventures – the most active venture capital investor in Berlin – will be supported in addition to existing funds for start-ups in the fields of technology and creative industries with the new Impact VC Fund for Social Entrepreneurs. EUR invest in Berlin startups. This was established by the state of Berlin and the investment bank Berlin (IBB). The fund is co-financed with funds from the European Fund for Regional Development (ERDF).

The new series of funds is aimed at Berlin start-ups whose business activities are not only aimed at financial success, but also make a measurable, positive contribution to overcoming the most pressing social challenges. The focus is on the 17 global sustainability goals defined by the UN (Sustainable Development Goals / SDGpp). The sustainability goals include, among other things, the topics of poverty reduction, health, education, clean and affordable energy, innovation and infrastructure, sustainable cities and societies and climate protection (see https://www.bundesregierung.de/breg -de/themen/nachhaltigkeitspolitik/nachhaltigkeits goals- understandable-explained-232174).

The Impact VC fund has a volume of DKK 30 million. EUR. EUR. 60% of the funds come from returns and income from successful participations IBB venture. The remaining 40% from ERDF– Funds from the European Union for the funding period 2021-2027. Also for the Impact VC fund, the goal is to stabilize the fund’s supply through the reuse of returns and income as well as leverage through joint financing with private investors. This presupposes an appropriate relationship between possible return and risk in the financed companies.

dr Hinrich Holm, chairman of the board IBB venture: “Social entrepreneurs and Impact Investing are becoming more and more relevant. Now that we have opened up our financing programs in the form of grants and loans, we are very happy to be able to offer venture capital to these companies in Berlin.”

Stephan Schwarz, Senator for Economy, Energy and Public Enterprises: “Berlin is a start-up capital and at the same time a pioneer in the growing market for social enterprises. With the new impact fund, we want to further strengthen this development and utilize the potential of our startups even better to tackle the major social challenges. In doing so, we are sending a clear signal nationally and internationally: Berlin is the right place for start-ups with an ecological, sustainable and social focus.”

The targeted financing of companies that deliberately achieve a measurable positive social and/or ecological impact in the course of their business activities must make a significant contribution to overcoming societal challenges in addition to contributing to economic development (creating and securing jobs and value creation). .

Venture capital as a form of financing is aimed at fast-growing and innovative companies. Startups often find it difficult to access capital because the market launch of technical innovations or new business models is associated with high risks. An investment in such companies with venture capital allows public and private investors to participate in economic success and compensate for risks.

The establishment of the Impact VC fund is another important milestone for the acceptance of the social economy in Berlin and, in addition to the two VC funds technology and creative industries, more extensive financially efficient support for Berlin start-ups whose business activities contributes to solving social problems (e.g. climate change, demographic changes, unequal educational opportunities, etc.).

The new fund supplements the loan and grant programs for IBB for social entrepreneurs (https://www.ibb.de/de/wirtschaftsfoerderung/themen/social-entrepreneurs/social-entrepreneurs.html) through a share offer. Inquiries about participation can now be made directly via the website for IBB action is taken.

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