• First annual report of KfW in cooperation with the Federal Government: A good start in implementing the WIN initiative for growth and innovation capital
• EUR 2.64 billion of WIN commitments were invested, of which 61 percent in Germany – primarily in companies in advanced growth phases
• Start-up and scale-up location Germany also strengthened by targeted WIN measures

The WIN initiative – “Growth and Innovation Capital for Germany” has got off to a good start in its implementation. This is shown in the first annual report of the initiative, which KfW has produced in cooperation with the Federal Government. Since the initiative was founded by the Federal Ministry of Finance and the Federal Ministry for Economic Affairs, the Federal Chancellery, KfW, companies and associations in September 2024, EUR 2.64 billion had been invested in the market by the end of the previous year.

This includes investments in young companies – as direct investments, through venture capital funds or funds of funds. Further investments include, for example, debt capital for these companies. The goal is to achieve investments of twelve billion euros by 2030. KfW coordinates the WIN initiative on behalf of the Federal Government.

According to the available data, the distribution of the committed investments shows a clear focus on the German and European markets (61 and 37 percent). Around 67 percent of the amounts invested went to scale-up companies in advanced growth phases, whereas ten percent went to start-ups, i.e. younger companies, and 18 percent were provided as seed capital to the group of youngest companies.

According to the information provided, most of the funds go to classic venture capital funds (51 percent). Direct investment in companies accounts for eight percent and venture capital funds of funds for six percent. For other instruments, debt capital (venture debt) plays a major role (36 percent in total). According to KfW Research’s Venture Capital Dashboard, investments in young innovative companies focus on artificial intelligence, and on climate, security and defence technologies.

The WIN initiative aims to improve the tax, legal and financial framework conditions in Germany in such a way that young and innovative companies can access private capital more easily. As part of the WIN initiative, the participants have pledged to strengthen the start-up landscape in Germany and Europe by means of ten measures in collaboration with the political sphere. Six of these measures have already been implemented. Two are currently being implemented as planned, and two are currently under review.

Building on its successes to date, the initiative is currently working intensively on a continuation. The main objective of the coalition agreement is to more than double the capital mobilised with the WIN initiative to more than 25 billion euros.

Vice-Chancellor and Federal Minister of Finance Lars Klingbeil said:

"We are continuing to work to strengthen the competitiveness of Germany as a business and innovation hub. We want to achieve technological leadership in key areas. The WIN initiative is an important building block for innovation in Germany. It is very good news that EUR 2.6 billion of this has already been invested in companies. In addition, the Federal Government has significantly improved the framework conditions for young and innovative companies with the Location Promotion Act. This will create the jobs of tomorrow and strengthen our sovereignty."

Federal Minister for Economic Affairs and Energy Katherina Reiche:

"We need more private venture capital in Germany to ensure that our start-ups and scale-ups can successfully implement their ideas. With the WIN initiative, we have already mobilised around EUR 2.6 billion for young, innovative companies. This is a strong signal for the German start-up ecosystem. But we want and can do even more. That is why we are now launching the next generation of programmes – for more investment in future technologies and a competitive location in Germany."

Stefan Wintels, CEO of KfW, said:

"In view of the accelerated technological and economic change, a strong venture capital ecosystem is now more than ever a prerequisite for sustainable innovation and international competitiveness. The alliance between companies, associations and political actors under the WIN initiative marks a milestone for the development of the venture capital ecosystem. The report shows that the WIN initiative effectively and sustainably strengthens the venture capital ecosystem in Germany. Thanks to joint efforts and targeted reforms, we are creating more growth and innovation, bringing fresh capital to the market and promoting sustainable technologies. The result: better financing conditions for young companies, more opportunities for investors and a strong boost for Germany as a business location."

More information on the WIN initiative: www.kfw.de/win (in German).