KfW Capital begins fundraising for ‘Wachstumsfonds II’

This is a joint press release from the Federal Ministry for Economic Affairs and Energy, the Federal Ministry of Finance, KfW and KfW Capital

• Fund of funds for institutional investors with broadly diversified access to the European venture asset class
• Profit-oriented strategy with balanced risk profile
• Second VC fund generation of the successful ‘Wachstumsfonds Deutschland’, again with a target volume of one billion euros
• KfW Capital, one of the most active investors with profound market expertise, is again acting as investment adviser and intermediary
• Strengthening the German and European VC ecosystem and mobilising private capital

On 1 April 2026 KfW Capital will start fundraising for the ‘Wachstumsfonds II’ fund of funds. It is the second fund generation of the ‘Wachstumsfonds Deutschland’, which had a volume of one billion euros and was almost fully invested within three years. Like its successor, the ‘Wachstumsfonds II’ targets institutional investors in Germany and abroad, including insurers, superannuation funds, pension funds, foundations, asset managers and family offices.

On behalf of the Federal Government and KfW, KfW Capital is designing and structuring the new fund of funds and again taking the role of investment intermediary and adviser. Both the Federal Government and KfW Capital as anchor investors will be contributing significant own investments of 200 million euros and 120 million euros. The target volume of the fund is again around one billion euros in total.

The ‘Wachstumsfonds II’ gives investors broadly diversified access to the European Venture asset class through a balanced portfolio of VC funds and direct co-investments – with indirect participation in around 1,000 innovative technology firms from a range of sectors. Using a 'pick-the-best' approach, it centres on investing in established VC fund managers with a proven track record. Besides, the investment strategy of the VC funds has a regional focus on Germany and Europe.

The ‘Wachstumsfonds II’ invests in line with the market and pursues a profit-oriented strategy with a reasonable risk level. The fund of funds can additionally invest in venture debt funds, co-investments and secondaries. Later-stage investments are its main focus. As a traditional VC fund of funds, the ‘Wachstumsfonds II’ provides tailored access vehicles for diverse groups of investors, thereby ensuring efficient access to the asset class.

Katherina Reiche, Federal Minister for Economic Affairs and Energy:

“Start-ups and scale-ups develop the ideas, technologies and products of tomorrow. They create jobs and safeguard our prosperity. Our task is to create the best enabling conditions for them. That is precisely where the ‘Wachstumsfonds II’ comes in. The fund enables us to attract new investors for the German venture capital market and mobilise private capital. This gives our start-ups and scale-ups the necessary financial backing to make Germany a strong and competitive business location.”

Lars Klingbeil, Deputy Federal Chancellor and Federal Minister of Finance:

"We want to make Germany more competitive as an investment location and safeguard jobs. In order to achieve this, we need to be technological leaders in key domains, and we need to have a competitive environment for investment, a modern industrial basis and functioning capital markets. The best ideas should originate in Germany and be scaled up really big here. The ‘Wachstumsfonds Deutschland’ was a great success. It shows how effectively private investment can be unleveraged with public funds. So I am all the more pleased that we are able to build on the success of the 'Wachstumsfonds' I and start the fundraising for the ‘Wachstumsfonds II’. After all, we now need to get things moving and ensure that young enterprises get the capital they need to become tomorrow's major players here in Germany."

Stefan Wintels, Chief Executive Officer of KfW and Supervisory Board Chair of KfW Capital:

"The continuation of the 'Wachstumsfonds' with a second fund generation provides major impetus for the European VC ecosystem. Start-ups and scale-ups will benefit from it. Like its predecessor, the ‘Wachstumsfonds II’ is designed to be an example of the successful interplay of private and public capital."

Dr Jörg Goschin, Chief Executive Officer of KfW Capital:

“In the past the European Venture asset class has developed very positively and surpassed not just other asset classes but other regions such as the US market in terms of profitability. This is already evident from the positive development of the portfolio of the ‘Wachstumsfonds Deutschland’. Investors are benefiting from KfW Capital's market expertise and experience. Our aim is to again achieve a benchmark volume that matches the level of the first fund. Based on talks I have had in Germany and abroad I can confirm that there is a strong interest in the asset class and the start of fundraising for the ‘Wachstumsfonds II’."

Background on the ‘Wachstumsfonds Deutschland’: The ‘Wachstumsfonds Deutschland’ is a building block of the German Federal Government's Future Fund. With a fund volume of EUR 1 billion, it is one of the largest VC funds of funds ever to be set up in Europe, and it is funded primarily from private resources. The fund has been almost fully invested since the end of March 2026 and has committed approx. EUR 870 million to 43 target funds (see also: ‘Wachstumsfonds Deutschland’ - KfW Capital).