Startups need rapid help in the Corona crisis

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Berg: “A major startup death must be prevented at all costs”
Bitkom publishes position paper “Holistic
support package for startups in times of the corona crisis"
In the Corona crisis, the digital association Bitkom has called for decisive political measures that are specifically tailored to young, innovative technology companies.

"Everything must be done now to prevent a large number of startups from dying out. Startups generally have no reserves, many live from hand to mouth and do not have the staying power to get through this crisis without support," says Bitkom President Achim Berg.

"We welcome the fact that the Federal Ministry of Economics has already announced a rescue package for startups. It is important that the package is decided and implemented quickly - and that it remains open for improvements."



Bitkom urges that particular attention be given to the following topics:
Closing short-term liquidity gaps: The measures announced to secure liquidity are australia gambling data not yet usable for innovative, young growth companies. The KfW must assume full risk. In order for startups to be able to obtain affordable loans, intangible company assets such as data should be given greater consideration in the credit rating. The scope of the application review should be adjusted so that the funds can be paid out within a few days.
Simplified state co-investments: The availability of venture capital for startups will deteriorate as a result of the corona crisis. In order to prevent promising and innovative business models from failing through no fault of their own, financing rounds should be completed with state funds if at least 25 percent of the volume is raised by private investors.
Accelerate the introduction of the Future Fund: The Corona crisis in particular threatens the withdrawal of foreign venture capital from Germany. This is lacking for large financing rounds for German startups. It is therefore essential to stick to the plans to introduce the Future Fund and accelerate its implementation.
Simplifying short-time work benefits: Short-time work can also be a good way for startups to react to a short-term drop in sales. However, the 40-page set of rules on short-time work represents a hurdle, especially for small startups, as they often do not have legal in-house expertise. Added to this is the bureaucratic effort involved in applying. In order to relieve the burden on both companies and employment agencies in view of the current challenges, applications should no longer be made monthly, but also quarterly for three months at a time. In addition, it should also be possible for working students to apply for short-time work benefits temporarily.
Subsidize personnel and fixed costs: In order to ensure the liquidity of startups, relief in the area of ​​fixed costs must also be possible.
In addition, in the paper “Holistic support package for startups in times of the corona crisis”, Bitkom proposes clarifying the situation for foreign skilled workers, on whom many startups depend, extending funding periods and expanding tax deferrals.

In addition, the state should set a good example and, especially now – for example in the case of urgent procurement – ​​award contracts more frequently and unbureaucratically to start-ups and innovative small and medium-sized enterprises.