The German government has earmarked an additional €1.6bn for an equity fund for technologies
of the future (Zukunftsfonds or Future Fund) and €150m for the European Recovery Programme
(ERP) fund, to finance young companies, looking at impact investments, according to a joint
statement by the Ministry of Economy and Climate Action and the Ministry of Finance.
The move comes after the final closing of the Growth Fund (Wachtumsfonds) for venture capital
investments, a central pillar of the Zukunftsfonds, that raised €1bn from Allianz, BlackRock,
Generali Deutschland and pension schemes for professionals (Versorgungswerke), among others.
In total over 20 institutional investors allocated capital to the fund, with the government and KfW
Capital, the subsidiary of state-owned investment and development bank KfW, acting as anchor
investors.
The cabinet intends now to further facilitate equity capital for young and innovative companies
operating in the technology sector, the ministries added in the statement.
“In addition to the €1.75bn in public funds that we invest, there is at least the same amount coming
from private funds. We are therefore talking about a total volume of public and private funding of at
least €3.5bn available for investments in the German venture capital market,” said Robert Habeck,
minister for economic affairs and climate action.
The capital is intended to support German and European start-ups investing in artificial
intelligence, climate, quantum or biotechnology, in the growth phase and looking at exit
opportunities, the ministries added.
Source: https://www.ipe.com/news/german-government-earmarks-further-16bn-for-start-up-
investments/10071509.article
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