• Both sides have signed a memorandum of understanding on EUR 400 million for German and French VC fund investments
• Capital leverage of up to EUR 1.6 billion is possible
• Deal consolidates close cooperation in venture capital

Nicolas Dufourcq, CEO of the French national investment bank Bpifrance, and Dr Jörg Goschin, CEO of KfW Capital, the 100% subsidiary of KfW, signed a memorandum of understanding (MoU), a “Protocol of Cooperation”, in the presence of Dr. Karsten Wildberger, German Federal Minister for Digital Transformation and Government Modernisation, and Anne Le Hénanff, French Federal Minister for Artificial Intelligence and Digital Affairs, at the VivaTech innovation show in Paris. The MoU continues and expands the existing cooperation in the field of “joint investments in venture capital funds in Germany and France”. Both promotional institutions have agreed to invest a total of EUR 400 million in German and French venture capital (VC) funds with a cross-border investment focus over a period of six years. The two institutions will invest the capital they bring in start-ups and innovative tech-firms from the respective country of origin, thereby promoting innovative and strategically important technologies of the future that strengthen Europe’s economic relevance. Given the leverage effect, a total of around EUR 1.6 billion in capital for start-ups could be mobilised. KfW Capital’s exposure in France and Bpifrance’s exposure in Germany already amount together to more than EUR 500 million in 27 VC funds.

Dr. Karsten Wildberger, German Federal Minister for Digital Transformation and Government Modernisation:

“I am delighted to see that today yet another layer has been added to our outstanding cooperation between France and Germany. Bpifrance and KfW Capital have proven their mutual interest and trust for cross-border investments in our technological future. Their support for the venture capital ecosystem in France, Germany and Europe clearly shows what is ahead: We will provide for the financial momentum to scale promising technologies at home, serving our digital sovereignty, our economic wealth and our European values. This is a promising partnership.”

Dr Jörg Goschin, CEO of KfW Capital:

“With the new Protocol of Cooperation, KfW Capital and Bpifrance are sending out a strong signal for the Franco-German friendship and the continuation of the very good cooperation in the VC ecosystem. It is driven by the conviction that a strong VC ecosystem must be viewed as transcending national boundaries in order to strengthen Europe and, thus, Germany as an innovation hub. Building on the long tradition of cooperation between our two countries, we are creating enhanced financing opportunities for innovative high-growth enterprises in Germany and France. They will promote the exchange, financial strength and venture culture in both countries.”

Nicolas Dufourcq, CEO of Bpifrance:

“This memorandum of understanding with KfW Capital marks a decisive step forward in Franco-German collaboration within the venture capital ecosystem. By committing together EUR 400 million to support the most innovative start-ups across our two countries, Bpifrance and KfW Capital are reaffirming their shared conviction: Europe's technological sovereignty will be built through strong cross-border partnerships. This agreement is a concrete expression of that ambition, and a powerful signal to entrepreneurs on both sides of the Rhine.”

On 25 October 2019, Bpifrance and KfW Capital had signed a first “Protocol of Cooperation – Joint Investment in Private Equity Funds in France and Germany” in order to coordinate their activities and promote the cross-border scaling of enterprises. As this Protocol expired in 2025, it is now being superseded by the new arrangement.

The cooperation between KfW Capital and Bpifrance continues a long tradition of the Franco-German partnership, the foundation stone of which was laid with the Elysée Treaty of 1963. For years, an institutionally anchored partnership has also existed in the field of promotional banking.

About KfW Capital

As a wholly-owned venture capital subsidiary of KfW Group, KfW Capital invests in European VC funds with support from the ERP Special Fund and the Germany Fund/Future Fund. It also enters into co-investments. Its aim is to sustainably bolster the VC fund landscape to give innovative technology companies in Germany better access to growth capital. The VC funds for their part commit to investing at least the amount of capital brought in by KfW Capital into German high-growth enterprises. KfW Capital applies the Sustainability Policy and Exclusion List of KfW Capital in its investments. Further information on KfW Capital, the programmes and KfW Capital’s VC fund portfolio is available at www.kfw-capital.de.

About Bpifrance

Bpifrance is the French national investment bank: it finances businesses – at every stage of their development – through loans, guarantees, equity investments and export insurances. Bpifrance also provides extra financial services (training, consultancy) to help entrepreneurs meet their challenges (innovation, export…).
For more information: www.Bpifrance.com - https://presse.bpifrance.fr - Follow us on X: @Bpifrance - @BpifrancePresse and LinkedIn

Press contact Bpifrance:
Pierre Cejka: pierre.cejka@bpifrance.fr, Tel: +33663786421
Juliette Fontanillas: juliette.fontanillas@bpifrance.fr, Tel: +33672760806