“By launching the ‘Wachstumsfonds Deutschland’ we have succeeded in setting up a marketable structure for mobilising private capital. This fund is a great example showing how the public sector and private investors can jointly bolster the VC ecosystem in Germany and Europe.” – Stefan Wintels, Chief Executive Officer of KfW Group and Chair of the Supervisory Board of KfW Capital

The “Wachstumsfonds Deutschland” (Growth Fund Germany), a venture capital (VC) fund of funds, has successfully achieved its target raise of EUR 1 billion. This accomplishment positions it as one of the largest VC funds ever established in Europe. Funded primarily by private resources, it serves as a key component of the Future Fund of the German Federal Government. Notable anchor investors include the Federal Government, KfW Capital, and over 20 major institutional investors such as Allianz, BlackRock, Debeka, and Generali Deutschland AG.

Distinguished by its unique structure, the Wachstumsfonds Deutschland comprises two parallel investment vehicles to cater to different risk preferences among investor groups. It collaborates with various investors to support German and international VC funds, focusing on Europe and Germany. This strategic investment aims to enhance access to crucial growth capital for start-ups and innovative technology firms, ultimately bolstering Europe and Germany as prominent innovation hubs. (KfW Capital)

Managed by the Universal Investment Group, with KfW Capital acting as both investment intermediary and advisor, the fund has already made significant investments in 16 VC funds, totaling more than EUR 260 million by mid-November 2023.

The involvement of private institutional investors showcases Germany’s strength as a business location. The success of Wachstumsfonds Deutschland aligns with the country’s commitment to fostering innovation and strengthening its position in the global business landscape.

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Image by Nikolaus Bader from Pixabay