German minister calls for new stock market tier for start-ups

The minister wants to improve financing prospects for German start-ups by encouraging early IPOs. This could be done either through the establishment of an entirely new stock market subsidary or by improving Entry Standard, the present tier with the lowest entry requirements for businesses.

A ministry spokesman said the German economy needs to offer more possibilities to young companies - something a new stock market tier would enable.

In June, Rösler met with members of the German stock market Deutsche Börse and the national union of start-ups to discuss the possibility of reviving a stock market segment for young technology firms. Rösler also met with Deutsche Börse CEO Reto Francioni earlier this month.

According to Rösler, boosting IPO prospects for young companies will make venture capital more attractive to investors.The German ministry believes this will help build up a stronger internet economy in the country.

Companies listed on the new stock market segment would have a revenue of €30-50m and employ 100-500 staff, said Florian Nöll, CEO of the national union of German start-ups, according to local media. The investors targeted would be institutional and not private to avoid a repetition of the 2003 stock exchange crash.

IPO activity in Germany has remained low in recent years as German investors still shy away from listing businesses due to the Neuer Markt crash ten years ago.

The article by the Handelsblatt publicising Rösler's plans started a public debate about the risk of another potential dotcom bubble.

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• DACH
• Technology
• IPO