More venture capital for Bavarian startupsThis Space News was published on Wed, 07.07.2021 – 20:17 CEST, covering OroraTech
Bavarian companies play a decisive role in the commercialization of space travel. Numerous startups in European NewSpace have their headquarters in Bavaria. Not without reason: Bavaria promotes innovative developments - also in space technology.
Now, the European Investment Bank (EIB) has increased the Bavaria 2 Growth Fund (WFB 2), previously endowed with 115 million euros, by a further 50 million euros. This means that more venture capital is available to technology-driven, innovative startups in their growth phase. The EIB's commitment was already decided in March 2021, and the signing ceremony took place on July 5, 2021. EIB Vice President Ambroise Fayolle and Bavaria's State Secretary for Economic Affairs Roland Weigert were joined by the founders and chief executives of German Bionic Systems (robotics), Wealthpilot (fintech) and OroraTech. These companies are the first three to rely on venture capital from WFB 2 in their growth phase.
"It is a core concern of our economic policy to offer courageous founders with promising ideas optimal framework conditions for growth and success. After all, they are the drivers of innovation and thus decisively strengthen our competitiveness. With the additional 50 million euros from the EIB for the Bavaria 2 Growth Fund, we are providing targeted support for even more Bavarian start-ups with highly innovative business models. The EIB's entry is also a clear commitment to Bavaria as a business location. The personal visit of EIB Vice President Ambroise Fayolle and his delegation to Munich underlines this commitment and makes us very happy."Roland Weigert, State Secretary in the Bavarian Ministry of Economic Affairs, Regional Development and Energy
As recently as June 2021, OroraTech was able to secure 5.8 million euros in a Series A financing round (Astrodrom reported). Now, growth fund WFB 2 has also taken a stake in the Munich-based company, enabling satellite-based detection of forest fires. With its own nanosatellites, OroraTech's "Wildfire System" is expected to become even more powerful in the future. The platform is already being used by government agencies, insurance companies and commercial forestry operations around the globe.
Further WFB 2 investments in German Bionic Systems and Wealthpilot
German Bionic Systems is a European market and technology leader in the field of robotic exoskeletons with headquarters in Augsburg. The intelligent, backpack-like power suits help employees in physically demanding jobs, such as in warehouses, to reduce the risk of musculoskeletal disorders.
The fintech Wealthpilot is aimed at wealth advisors of all kinds, banks and insurance companies. With Wealthpilot, they can analyze and plan the total assets of their end customers "at the touch of a button" and then make them available to the end customer transparently and comprehensibly on all end devices using their own access.
EFSI guarantee secures EIB participation in WFB 2
The EIB's participation in WFB 2 is backed by a guarantee from the European Fund for Strategic Investments (EFSI). The EFSI is the main pillar of the Investment Plan for Europe, with which the EIB and the EU Commission aim to stimulate investment activities in Europe. According to the criteria of the EFSI and the EIB, start-ups primarily in the fields of life sciences, medical technology and diagnostics as well as IT and robotics can be financed. The commitment in Bavaria is intended to strengthen companies in the growth phase, for which there are too few private investors in Germany.