Investment Focus of KfW Capital / ERP VC Funds Investments
KfW Capital invests in venture capital and venture debt funds, which in turn invest in young, innovative technology-oriented growth companies in Germany, thereby strengthening the capital base of these companies.
KfW Capital is an institutional investor, whose investments are made pari passu with private investors. KfW Capital invests up to a maximum of EUR 25 million and a maximum of 19.99% of the fund’s capital and voting rights.
KfW Capital invests as early as the first closing or later at the second or final closing.
KfW Capital invests in funds with proven track record, but also in first-time funds, and is happy to participate at first closings.
KfW Capital is committed to the sustainability guidelines that govern KfW’s domestic promotion programs.
The target funds should generally have a volume of at least EUR 50 million and mainly private investors.
The target funds invest at last the amount of our commitments into young, innovative technology-oriented growth companies based in Germany.
The target funds must have clear investment and exit strategies.
KfW Capital: Structure and products
1) The Federal Government uses parts of the ERP Special Fund to promote start-ups and SMEs, for example using debt or equity capital.
KfW Capital complies with the “Public Corporate Governance Code” (PCGC) adopted by the German Federal Government on 1 July 2009. The code is specifically directed at companies in which the Federal Republic holds a stake and formulates good corporate governance standards in the form of recommendations designed to make the governance and supervision of these enterprises more transparent and verifiable.
Link (in German): Verhaltenskodex der Geschäftsführung von KfW Capital