EUR 1.75 billion for the VC ecosystem

The German government wants to further strengthen the German VC ecosystem: A total of EUR 1.75 billion is planned from the Zukunftsfonds (EUR 1.6 billion) and the ERP Special Fund (EUR 150 million). KfW Capital will implement projects with a total volume of EUR 1.25 billion - a gradual introduction of the subsequent building blocks is expected to begin at the end of 2024:

EUR 850 million is to be invested by KfW Capital together with private venture capital funds in outstanding technology start-ups from the key innovation and transformation areas, in particular artificial intelligence, climate, quantum, and biotechnology.
A further EUR 200 million is intended for investments by KfW Capital in so-called impact venture capital funds, which aim to achieve a measurable, positive social or ecological impact in addition to a financial return.
EUR 200 million is to be invested in the successor fund to Wachstumsfonds II, which has yet to be designed and is intended to consolidate the successful model of the Wachstumsfonds and mobilize further capital from institutional investors.

In addition,

Up to EUR 500 million is intended as a German contribution to strengthening the European exit markets - together with the contribution of the other European Tech Champions Initiative (ETCI) member states, work is being carried out here within the framework of the European Investment Fund to specifically strengthen the European exit markets.

The design and development of the individual products / programs will now begin. The responsible ministries at BMWK and BMF are in close contact with KfW Capital, the coordinator of the Zukunftsfonds. Program details will be published shortly after the program launches.

Published: February, 2024