KfW Mittelstandsbank invests in young technology-based businesses and established small and medium-sized companies.The ERP Start fund is invested in early-stage innovative businesses, generally in syndication with a third-party investment firm, a corporate strategic investor, the German Federal Ministry for Economics and Labor (BMWA) and private investors. The firm co-invests with a lead investor who provides consulting support to the investee. They avoid getting involved in the management of the companies in which they invest. The firm may participate in subsequent financing rounds. The ERP Start fund is focused on technology-based startups developing new products or services based on their own research and development effort.The ERP Participation program makes one-time only investments in direct equity participations, targeting established middle-market companies with an annual turnover of up to 50 million Euros. ERP Participation focuses on expansion financing, operational restructuring, corporate successions, shareholder restructuring and innovative or cooperative projects. The targeted investment horizon varies from 10 years in the western part of Germany to 15 years in the eastern regions.The KfW Unternehmerkapital program specializes in mezzanine financing, offering long-term subordinated loans to startups, expansion-phase businesses and established companies.