17/11/2020
How did Germany "rescue and support" startups in Covid-19? Part 1According to Startup Blink 2020, Germany has the 5th largest startup ecosystem in the world, an increase of 4 places compared to 2019. This shows the potential of startups, innovation and the German Government’s support to promote entrepreneurship and innovation to become one of the main drivers of economic and society development.According to Startup Blink 2020, Germany has the 5th largest startup ecosystem in the world, an increase of 4 places compared to 2019. This shows the potential of startups, innovation and the German Government’s support to promote entrepreneurship and innovation to become one of the main drivers of economic and society development.
COVID-19 happened, which led to the decline of the world economy in general as well as innovative startups in particular, but Germany still stands out in supporting startups in the epidemic. One of the prominent policies of the German Government to help startups overcome the pandemic is the EUR 2 billion assistance package for startups operating in Germany. Practically many investment deals cannot continue despite agreements before the outbreak of COVID-19, as well as investors and investment funds hesitate to invest in these challenging times due to the high risk and volatility of the current market. Therefore, German policymakers have designed an assistance package that focuses on maintaining a stable investment cash flow for startups. The EUR 2 billion assistance package will play an important role as a replacement for the investment deals that have been agreed but canceled because of COVID-19. Simultaneously, it invests alongside many investors and venture capital funds to share risks and to promote that financial resources for startups remain "available" even in this difficult time, therefore startup can continue growing at their own pace.
Under usual circumstances, accessing "traditional" sources of investment has been very difficult for startups, and during the outbreak of COVID-19 around the world, raising capital again becomes more and more difficult. This has prompted the German Government to come up with an innovative startups-specific assistance package to help these businesses get through tough times in the best state possibility. With the important role of startups and innovative ideas in promoting economic growth, solving social problems, the German Government has provided the best support for startups to avoid disruptions and continue to grow.
In addition to financial support, German startups also receive support from a supportive program up to EUR 50 billion for SMEs and self-employed individuals, business owners that are affected heavily by COVID-19. The support program is designed in the form of tax exemption for businesses and self-employed individuals with a maximum number of 10 employees, divided into 2 levels of support:
- Support tax reduction up to 9,000 Euro for 3 months for businesses with a maximum of 5 full-time employees;
- Support tax reduction up to 15,000 Euro for 3 months for businesses with a maximum of 10 full-time employees.
If the allowance is not used up in 3 months because beneficiaries receive other support, for example, a minimum 20% reduction in rent fee, the allowance may be extended for 2 months.
Here is the 2nd part of this article: http://startup.gov.vn/Pages/chi-tiet-tin-tuc.aspx?l=Tintucsukien&ItemID=301
According to Startup Blink 2020, Germany has the 5th largest startup ecosystem in the world, an increase of 4 places compared to 2019. This shows the potential of startups, innovation and the German Government’s support to promote entrepreneurship and innovation to become one of the main drivers of economic and society development.
According to Startup Blink 2020, Germany has the 5th largest startup ecosystem in the world, an increase of 4 places compared to 2019. This shows the potential of startups, innovation and the German Government’s support to promote entrepreneurship and innovation to become one of the main drivers of economic and society development.
COVID-19 happened, which led to the decline of the world economy in general as well as innovative startups in particular, but Germany still stands out in supporting startups in the epidemic. One of the prominent policies of the German Government to help startups overcome the pandemic is the EUR 2 billion assistance package for startups operating in Germany. Practically many investment deals cannot continue despite agreements before the outbreak of COVID-19, as well as investors and investment funds hesitate to invest in these challenging times due to the high risk and volatility of the current market. Therefore, German policymakers have designed an assistance package that focuses on maintaining a stable investment cash flow for startups. The EUR 2 billion assistance package will play an important role as a replacement for the investment deals that have been agreed but canceled because of COVID-19. Simultaneously, it invests alongside many investors and venture capital funds to share risks and to promote that financial resources for startups remain "available" even in this difficult time, therefore startup can continue growing at their own pace.
Under usual circumstances, accessing "traditional" sources of investment has been very difficult for startups, and during the outbreak of COVID-19 around the world, raising capital again becomes more and more difficult. This has prompted the German Government to come up with an innovative startups-specific assistance package to help these businesses get through tough times in the best state possibility. With the important role of startups and innovative ideas in promoting economic growth, solving social problems, the German Government has provided the best support for startups to avoid disruptions and continue to grow.
In addition to financial support, German startups also receive support from a supportive program up to EUR 50 billion for SMEs and self-employed individuals, business owners that are affected heavily by COVID-19. The support program is designed in the form of tax exemption for businesses and self-employed individuals with a maximum number of 10 employees, divided into 2 levels of support:
- Support tax reduction up to 9,000 Euro for 3 months for businesses with a maximum of 5 full-time employees;
- Support tax reduction up to 15,000 Euro for 3 months for businesses with a maximum of 10 full-time employees.
If the allowance is not used up in 3 months because beneficiaries receive other support, for example, a minimum 20% reduction in rent fee, the allowance may be extended for 2 months.
Here is the 2nd part of this article:
http://startup.gov.vn/Pages/chi-tiet-tin-tuc.aspx?l=Tintucsukien&ItemID=301