DCC Mentor city Hamburg will give financial backing to innovative start-ups and help them grow with the launch of the Hamburg Innovation Growth Fund.
The fund which will be managed by the Hamburg investment company Neuhaus Partners will focus on digitisation in all sectors relevant to Hamburg, investing in existing start-ups with promising growth prospects.
Up to EUR 100 million in venture capital is expected to be raised for the fund with the Hamburg Investment and Development Bank (IFB Hamburg) as anchor investor, contributing public funds of up to EUR 10 million on behalf of Hamburg. At the same time, funds will be secured from more institutional and private investors.
As well as expanding the financing possibilities for start-ups in a crucial phase, the funds will allow them to gain a stronger foothold on the market by developing their innovation or setting up production, sales and marketing. The investments are to be resold after three to eight years.
Frank Horch, Senator for Economics, Transport and Innovation, noted: “The establishment of the Hamburg Innovation Growth Fund is intended to close a financing gap for promising innovative companies in their growth phase and strengthen Hamburg’s venture capital and start-up ecosystem. We are delighted to have found in Neuhaus Partners an experienced Hamburg fund manager who has proven his expertise several times in the past.”