France has led the pack in the continent, launching a 4 billion euro ($4.4 billion) liquidity plan to support its start-ups’ cash flows. The package includes short-term refinancing, investment into already-planned funding rounds and early payment of some tax credits.
On Wednesday, the German government said it would provide 2 billion euros in financial assistance to help keep its young tech businesses afloat. It’s also considering a longer-term fund of 10 billion euros for bigger
Together, Germany and France are the leaders within the EU when it comes to hosting the best-funded tech sectors. Last year saw both countries attract $7 billion and $5.2 billion in venture capital respectively, according to figures from Dealroom.
Across the continent, though, they are second and third
Though the British government has put an emergency loan scheme
In the U.K., seven industry lobby groups have written a letter to Finance Minister Rishi Sunak calling for the creation of a £300 million ($373 million) fund to help them continue operating, according to Sky News.
The proposed “runway fund,” which was previously reported by CNBC, would allocate loans that then convert into equity stakes at a company’s next financing round. The idea has been backed by well-known industry groups as well as noted venture capitalist Brent Hoberman.
“We’ve seen numerous financial ‘Bazookas’ being unloaded across Europe,” said Benedikt Blomeyer, director of EU policy at Allied for Startups. “Fundamentally we think a start-up shouldn’t be at a disadvantage because it is in Spain and not in France.”
Mark Tluszcz, CEO of Luxembourg-based Mangrove Capital Partners, said he expects