Wachstumsfonds Deutschland, a venture capital (VC) fund of funds and key building block of the German Federal Government’s Future Fund, held the final closing at EUR 1 billion.
The fund, which aims to strengthen the European and German venture capital ecosystem received support from the Future Fund, KfW Capital, and more than 20 investors including insurers, superannuation funds, foundations, asset managers and large family offices such as Allianz, BlackRock, Debeka, Generali Deutschland AG, Gothaer Versicherung, HUK-Coburg, the RAG-Stiftung, SIGNAL IDUNA, Stuttgarter Lebensversicherung a.G., Tecta, and Württembergische Lebensversicherung AG.
Together with other investors, the Wachstumsfonds invests in German and international VC funds with a focus on Europe and Germany. This will improve access to needed growth capital for startups and innovative technology firms while strengthening Europe and Germany as an innovation location.
The fund invests primarily in German and European VC funds with a focus on the later stage segment. The sectoral focus is on information and communication technology (ICT), life sciences as well as climate and food tech. As is customary, the Growth Fund Germany began its investment activity already after the first closing, which was in mid-December 2022. By mid-November 2023, it had already invested in 16 VC funds with a volume of more than EUR 260 million.
KfW Capital is the coordinator of the “Future Fund” (“Investment Fund for Technologies of the Future”). Under this fund, EUR 10 billion will be available for the quantitative expansion and qualitative enhancement of existing financing offers and the development of new instruments until 2030. In addition, the ERP Special Fund is participating financially in multiple instruments of the Future Fund. KfW Capital acts as both an investment intermediary and an investment advisor for the Wachstumsfonds Deutschland.
The fund will be managed by the fund service platform Universal Investment Group.