Startup and scaleup strategy: IPO of central importance

The German government plans to strengthen the environment and conditions for growth companies in a startup and scaleup strategy. In this position paper on the planned strategy, Deutsches Aktieninstitut draws attention to the great importance of IPOs for a functioning startup and scaleup ecosystem. An IPO offers the opportunity to raise large amounts of new equity capital and also allows investors who focus on earlier stages of company development to exit. 

Small changes are not enough to strengthen startup and scaleup financing. An ambitious package of measures to strengthen the capital markets as a whole is necessary, especially on the financing side. This consists of:

• Strengthening equity investment in all pillars of the pension system and regarding wealth building of people as a prerequisite for strengthening the financial center and improving innovation financing
• Make the framework for raising capital in the German Stock Corporation Act significantly more flexible
• Simplify capital market regulation at German and European level in a consistent approach