For several legislative periods, there have been discussions about allowing the state holding company ÖBAG to invest in start-ups or provide venture capital for young companies. But when it comes to start-ups, board member Edith Hlawati is holding back, according to an interview with profil. ÖBAG could potentially act as a later-stage anchor investor. According to KSV1870 expert Karl-Heinz Götze, securing follow-up financing for young companies is particularly crucial in Austria, as he told APA on Tuesday.
“The problem is that typically eight or nine out of ten start-ups fail in the first phase,” Hlawati noted in the magazine. “If a private investor loses that money, it’s their business. But if I lose money, it’s always taxpayer money.” She added that start-ups in Austria are already “well supported.” It’s the growth phase — the second phase of a company — that could be targeted for support.
In profil, Hlawati proposed the idea of a fund-of-funds model with ÖBAG as an anchor investor. As previously suggested, the fund would be equipped with €500 million and take 25 percent stakes in companies. “That creates a risk buffer and builds trust for private investors,” said Hlawati. “We would define which sectors or future technologies this fund should invest in.”
Expert: “Follow-up financing is a major gap in Austria”
KSV expert Götze told APA that “follow-up financing is the big problem — a vast desert — in Austria. That’s where action is needed.” Initial financing often works, and Götze also pointed to the existing grant landscape. A fund staffed with specialists — whether via ÖBAG or another entity — would be a good solution. ÖBAG is one of several options.
Götze believes that public funds lost through failed start-up investments could likely be recovered through successful ones. In Austria, however, the mindset tends to focus on failures rather than successes, he lamented. “Yes, there’s risk, but it can make sense economically.”
What an anchor investor does
An anchor investor acquires a significant stake in a company. This often happens through an initial public offering (IPO), but it can also occur via capital increases. The goal is to secure the company’s growth financing and boost confidence among additional investors.
