Venture capitalist Klaus Hommels on state aid for corporations and start-ups

“Just look at who is really supposed to get billions in state aid: the listed corporations Adidas and TUI. But there are hardly any German shareholders left behind them. The state promotes this with a loan, although they could simply make a capital increase, in which the mostly foreign existing investors would have to co-invest. So with the listed corporations we are protecting the foreign investors. Money comes in here without old investors reinvesting. We, on the other hand, want to protect the start-ups, not the venture capitalists. Therefore, a funding measure makes sense in which the venture capitalists have to put in their own money, which is then topped up by the state..”

– Venture capitalist Klaus Hommels in “Some investors behave impossibly”, Handelsblatt, April 23, 2020, No. 79

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