KfW Capital in 2019
As a wholly-owned subsidiary of KfW, KfW Capital aims to sustainably improve the provision of venture and growth capital to innovative technology companies in Germany. Over the next ten years and with the support of the ERP Special Fund, KfW Capital will invest around EUR 2 billion in German and European venture capital funds to give innovative technology companies better access to growth capital by strengthening the funds’ capital base. The aim is also to attract more private capital to the venture capital asset class. Through its fund investments, KfW Capital is providing a long-term boost to Germany as an innovation hub.
- KfW Capital always invests in VC funds on equal terms with other private equity providers.
- At least the capital provided by KfW Capital must be used to finance innovative technology companies in Germany.
- KfW Capital invests across sectors and irrespective of economic cycles, attaching importance to consideration of environmental, social and governance criteria in selecting the target funds.
Successful first full financial year
KfW Capital committed to investments of EUR 156 million in 2019, making it a successful first financial year. As planned, KfW Capital increased commitments in the ERP VC Fund Investments programme with support from the ERP Special Fund by around a quarter to EUR 155 million (EUR 124 million in 2018). The difference is due to the investments in the High-Tech Start-Up Funds I and II. KfW Capital participated in a total of ten funds in the ERP VC Fund Investments programme in 2019. Therefore, as of 31 December 2019, KfW Capital’s VC fund portfolio comprised a total of 34 VC fund commitments with a volume of EUR 600 million. The portfolio is broadly diversified in sectoral terms. Around three quarters of the funds have their investment focus on ICT, life sciences or industrial technology with one quarter investing across sectors. Total fund volume amounts to around EUR 7 billion, and has funded more than 800 companies to date.
The information contained in this online Annual Report 2019 is based on KfW’s Financial Report 2019, which you can download Should this online Annual Report 2019, despite the great care taken in preparation of its content, contain any contradictions or errors compared to the Financial Report, the KfW Financial Report 2019 takes priority.