Study on the Financing and Funding Needs of Green Start-ups

Publication date: 22 December 2023 | Report language: DE

In cooperation with the Leibniz Centre for European Economic Research (ZEW), Technopolis Germany has conducted a study for the KfW on the financing and funding requirements of green start-ups in Germany. With green offers, start-ups are encountering a steadily growing demand and at the same time can actively shape the transition to a sustainable, climate-friendly economy. However, green start-ups also face specific challenges such as longer development and market development periods, rapidly changing regulatory frameworks and strong competition with established companies. State subsidies attempt to strengthen the contribution of green start-ups to achieving sustainability goals. In the context of an increasing potential for start-up projects, the question arises as to where state intervention is necessary and how public funds can be used most efficiently to support such start-ups in the identified fields. Against this background, the study analysed the financing and funding requirements for green start-ups in Germany and options for the design of possible funding activities by the KfW. The starting points were a quantitative analysis of start-up activity and potential in this segment, interviews with experts and start-ups and a review of existing approaches to promoting green start-ups in Germany and internationally.