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It has been quite a challenge for the northern German state of Schleswig-Holstein to attract investment and sell locations to large multinational corporations. Instead, financial institutions such as Investitionsbank Schleswig-Holstein (IB) have focused their attention on smaller startups and mid-sized multinationals, persuading them to open and operate in the state with an emphasis on advanced technology.
The regular meetings have been an overwhelming success, to the surprise of the management board of IB. "At the first event, we expected about 150-200 people to turn up, and we got over 600," he said. "There are young people with fresh ideas, and others are there to try and pick a winner." IB's strategy, with the cooperation of other state banks, has widened the equity base to cover such ambitious projects and events. It plays an important role in Schleswig-Holstein and the rest of Germany as well. "The German 'mittelstand' (small to medium-sized company base) has less equity than its global counterparts," explained Dr. Rave. "They are far more reliant on borrowing and long-term lending. This will change dramatically, so that is the reason we need to be there -- not as a lender of last resort but as a partner from the beginning. We want to join at an early growth stage, not only when the business is declining. However, being there in hard times is our job too," he said. The bank is already gearing up for the Baltic region's expanding role in the European Union. Along with its home financing and development business and its growing role in mittelstand finance, IB is starting a new role as the only bank in Europe that approves loans for the EU's northern zone. Fully financed by the EU, IB has just started Interact 3B, which will fund infrastructure development for northern Germany, Scandinavia, and future EU members in the Baltic region.
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Investitionsbank SH Managing Director Dr. Klaus Rave (right) and Speaker of the Board Lutz Koopmann (left)