The German government wants to provide more support for startups that work in the sectors of artificial intelligence, climate-, quantum- or biotechnology, for example, and increase the exit opportunities for German and European startups. In addition, existing collaborations with institutional investors are to be intensified and young startups are to be supported with impact investing. The federal government has earmarked 1.6 billion euros from the Future Fund, which was previously held as a strategic reserve, and 150 million euros from the ERP Special Fund for this purpose.
According to Economics Minister Robert Habeck, at least the same amount of private funds will be added to the 1.75 billion euros in public funds invested by the federal government. This results in a total volume of public and private funds of at least 3.5 billion euros, which are additionally available for investment in the German venture capital market.
The capital is to be invested as follows:
850 million euros are to be used by KfW Capital together with private venture capital funds for direct investments in young startups in innovative technology sectors. The companies are to be supported on their capital-intensive growth path in such a way that they can assert themselves on the global market and make Germany fit for the future.
Up to 500 million euros are earmarked as a German contribution to strengthening the exit financing of European tech champions. Together with European partners, the establishment of a European exit initiative is planned. This is intended to lay the foundation for ensuring that successful German and European startups do not have to switch to non-European markets for exits.
200 million euros are to be made available to KfW Capital for a continuation of the successful Growth Fund Germany. The aim is to consolidate the growth fund's successful model and mobilize further capital from institutional investors.
200 million euros are earmarked 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. This is intended to provide targeted support for the new market segment of impact investing.
The design and development of the individual products will now begin. The gradual introduction of the products is expected to begin at the end of 2024.