Germany-based financial services provider Berliner Volksbank launched a venture capital unit today named Berliner Volksbank Ventures that will be initially equipped with €20m ($22.5m) in capital, acccording to Gruenderszene.
The new subsidiary will focus on startups developing technologies for small and medium-sized enterprises and the financial sector. It will primarily invest in businesses operating in the city of Berlin, as well as the rest of Europe.
Volksbank Ventures will initially commit between €250,000 and €1m to startups, and may in addition provide follow-on funding. Berliner Volksbank has also inked a partnership agreement with venture capital firm Redstone Digital to help identify startups.
The institution previously supported equity crowdfunding platform Bergfürst in 2013, but plans to use its new investment vehicle to invest directly in startups as both lead and co-investor. The unit will be managed by Andreas Laule and Timo Fleig.