Growth Fund Germany: Four fifths already successfully invested

• Around EUR 825 million out of EUR 1 billion committed to 41 target funds
• Broad diversification across sectors and phases: ICT (39 %), life sciences (35 %), generalists (26 %)
• More than 360 portfolio companies already funded via VC fund investments
• Dr Jörg Goschin: “Its innovative structure has enabled a smart interplay of public and private capital.”
• Second fund generation in preparation; fundraising starts in 2026

Just two years after the final closing, the Growth Fund Germany as a fund of funds has committed nearly EUR 825 million of its fund volume of approx. EUR 1 billion to 41 venture capital (VC) target funds (as at 26 November 2025). More than 360 innovative technology firms have already been funded across all sectors through the target funds. The portfolio of the Growth Fund has shown a pleasing performance development already in the first phase. This is also evidence that the portfolio companies are addressing decisive challenges of the future with their solutions and possess high-quality business models. Thus, the Growth Fund Germany, which was established under the Future Fund facility, is already contributing to strengthening the German and European VC ecosystem. KfW Capital designed and structured this innovative VC fund of funds on behalf of the Federal Government and was responsible for raising the funds. The KfW venture capital subsidiary also acts as an investment adviser for the Growth Fund Germany. The fund is managed by the fund service platform Universal Investment Gruppe. Substantial private capital was successfully raised (more than 70%) – including from new groups of investors – for the Growth Fund Germany, which has a volume of EUR 1 billion, making it one of the largest VC funds of funds in Europe. Thus, the fund is a textbook example that shows how an attractive structure is able to mobilise capital from the private sector and generate growth. As things stand, the fund will presumably be fully invested in the first half of 2026.

The portfolio formation of the Growth Fund is broadly diversified: 39 % of the commitments went to the information and communication technologies (ICT) sector, 35 % to life sciences and 26 % to other innovative fields such as deep tech, industrial tech, climate tech or food tech. In terms of phases, the fund invests 54 % in growth funds, 35 % in early-stage funds and 11 % in generalists.

“The Growth Fund has established itself as a strong instrument for growth capital in Europe. Its innovative structure has made it possible to achieve a smart interplay of public and private capital. What is particularly pleasing is that we were able to attract new investors from the private sector to the venture capital asset class. The investment focus of the Growth Fund Germany is on the important growth phase, during which the scaling and financing of the growth of technology firms takes place. We see further attractive opportunities for rounding off the portfolio for the remaining one fifth of the investment sum, both at VC fund level and for direct co-investments. Following the correction in valuations seen in the boom years of 2020 and 2021, now is a very good time for VC investments, and some very promising VC funds are in the fundraising phase,”

said Dr Jörg Goschin, Chief Executive Officer of KfW Capital. The design of the Growth Fund Germany has also attracted much attention at international level. Multiple countries, including Austria, have taken a very close look at the structure in order to bring similar products to market.

“The Growth Fund Germany as an export hit – this, too, is a strong signal for the market and for more private capital for the VC ecosystem,”

said Dr Goschin, Chief Executive Officer of KfW Capital.

KfW Capital is already working on the design of the Growth Fund II as a follow-on product in order to further consolidate the positive effects. The fundraising is to begin in 2026. The fund will again target professional domestic and international investors, particularly insurers, foundations, family offices, superannuation funds and pension funds.

Note:

You can find a selection of VC funds from the portfolio of the ‘Growth Fund Germany’ at: Portfolio Growth Fund Germany. You can also read more about the Growth Fund investors on the website.