Good news for Berlin’s startup scene. IBB, the Berlin state investment bank has announced its funds for Berlin’s startup investment have been upped to €100 million.
The funds are to be directed towards both tech and life-science innovation, as well as towards Berlin’s creative industry. The bank has previously invested in several prominent Berlin startups such as Outfittery, Ableton and Babbel.
Berlin’s senator for economy, technology and research, Cornelia Yzer said the release of 100 million in funds was an investment in “Berlin’s future”.
“It’s the tech and creative companies in particular that deliver innovation, growth and thereby jobs.”
Where are the funds coming from?
Half of the €100 million will come from EU funding, while the other half is sponsored by the state of Berlin. The IBB bank’s previous funding round was capped at €82 million.
The IBB bank currently has an investment portfolio of 75 companies, up from 69 in the previous year. These companies employ over 2,000 employees, and make a total annual turnover of 200 million. The 17 year-old fund has already invested in 25 companies this year.
IBB investment bank director Marco Zeller told the press that Berlin’s investment scene has “witnessed a pleasant development in 2013 with countless new investment companies, and we’re happy to support this with follow-up investments.”
A new boom
Co-director at IBB, Roger Bendisch recently told WebMagazin that Berlin’s current startup boom was different to any other boom he has witnessed in his past 17 years investing in Berlin.
I think what’s interesting is that we’re seeing huge international venture funds approaching to Berlin-based startups. Outfittery received money from Highland Capital. ResearchGate received money from Bill Gates. Berlin-based companies are getting a huge amount of money from abroad. That’s completely new and it’s exciting.
Berlin’s startup scene witnessed another interesting development this week with the launch of ‘The Factory’ startup campus, which houses international tech firms like Twitter, SoundCloud and Mozilla.
Feature image: top of the berlin tv tower seen through a construction site. via Shutterstock / copyright: Armin Staudt