Handelsblatt Exclusive Government to Invest Billions in Startups through Growth Fund

A tech growth fund, set up in cooperation with the state KfW Bank, would provide promising German startups with financing in their key growth phase.

Germany’s coalition government plans to invest billions more in tech startups through a new growth fund, the deputy finance and economic ministers wrote in a guest piece for Handelsblatt.

The government will cooperate with the state KfW Bank to set up a so-called tech growth fund, which would support startups in their key growth phase. Startups often struggle to raise venture capital in Germany’s risk-averse investment culture.

“The goal is mobilize billions in additional startup financing over several years,” wrote Deputy Finance Minister Jens Spahn and Deputy Economic Minister Matthias Machnig in their guest piece.