The German federal government plans to significantly accelerate its strategy supporting start-ups and scale-ups. According to a report by the “Handelsblatt”, citing a 38-page document that outlines 120 measures, key components include the implementation of faster application processes and enhanced employee equity participation.
The current draft legislation advises continuing the existing “Invest” federal funding program beyond 2026. Furthermore, the application processing time for the “Exist” program, which supports early-stage companies, is set to be reduced to six weeks. Regarding financial incentives, the tax-exempt allowance for employee stock options (ESOP) is slated to increase from the current €2,000 to €5,000.
In a related development, the government is exploring ways to expand the operational scope of the Federal Agency for Breakthrough Innovations (Sprind) into the defense sector. Officials are reportedly examining the use of current “Sprind” funding tools to accelerate technological development within the broader security and defense fields.
Currently, the draft strategy is undergoing inter-departmental coordination. According to a spokesperson for the Ministry of Economic Affairs, the Federal Cabinet plans to approve the strategy this summer. However, the paper is not yet finalized, and further meetings are scheduled for the coming days; therefore, the ministry declined to provide specific details.