Public investors
Public investors receive their capital, which they can invest in startups, from (regional) state financing sources. On a government level, the Reconstruction Loan Corporation (KfW) is a key investor for both the funds of the High-Tech Gründerfonds as well as for Coparion GmbH & Co. KG.
As co-investor, Coparion can provide financial resources to the same amount as a lead investor who invests private capital. The economic as well as contractual terms and conditions are oriented to those of the lead investor. Coparion can invest up to 10 million euros in a company, usually 0.5 to 3 million euros in one financing round. As a prerequisite, the financed company must not be older than 10 years, and must have the status of a small or medium-sized enterprise based in Germany. The overall financing of the company must also be secured.
Many federal states in Germany have Mittelständische Beteiligungsgesellschaften (Regional public investment companies), which – similar to the HTGF and Coparion – can invest in startups with the federal state’s own financial resources. Often there are even cooperation discussions between these state affiliated companies and the HTGF aimed at providing initial financing jointly in early company phases.