KfW Capital participates in fourth generation of High-Tech Start-up Fund

• Already at the first closing, the HTGF IV received commitments totalling more than EUR 400 million
• KfW Capital is second largest investor after the Federal Republic
• Strong interest from SME investors

KfW Capital continues its activities in financing technology-oriented entrepreneurs and start-ups under the High-Tech Start-up Fund, contributing up to EUR 40 million to its fourth generation. With an essentially unchanged investment strategy, the High-Tech Start-up Fund IV (HTGF IV) helps to provide capital for Germany-based start-ups across all sectors.

The HTGF IV is the fourth issue of the High-Tech Start-up Fund which the Federal Ministry of Economics launched together with KfW and partners from industry for the first time in 2005. The share of private investors has grown continuously since the first generation of the fund. Already at the first closing, the HTGF IV received commitments totalling more than EUR 400 million, which will presumably make it substantially larger than its predecessor fund (HTGF III: EUR 319.5 million). The Federal Republic is the main investor; KfW Capital will be the second largest investor, as it was in the predecessor funds. Other participants in the fund are investors from industry and the business community, most notably the SME sector.

“In the past years the HTGF continued to establish itself as a strong and reliable partner for the financing of start-ups in the seed capital and start-up phase, including through successful exits. Furthermore, the large interest of private sector investors, especially SMEs, illustrates that the HTGF plays an important role in linking up innovative start-ups with industry”, said Alexander Thees, Co-managing Director of KfW Capital.