KfW Capital, a subsidiary of KfW, reported commitments of EUR 1.6 billion last year, following a high volume of around EUR 2.1 billion in 2023. The previous year's figures were influenced by special effects from the European Investment Fund under the "German Future Fund (GFF)-EIF Growth Facility."
Dr. Jörg Goschin, Chief Executive Officer of KfW Capital, stated: “In the past year, KfW Capital successfully invested the planned target volume of around EUR 425 million in 27 German and European VC funds under its own programmes. This year we will continue to be a reliable partner for the VC ecosystem and will be improving the funding conditions for start-ups and innovative tech firms. Besides our own investments, we will also be providing strong impetus by coordinating the Future Fund and providing investment advice in the context of the Growth Fund Germany.”
Since its establishment six years ago, KfW Capital has developed an attractive portfolio through a selective investment approach. Alexander Thees, Managing Director of KfW Capital, noted: “In the six years since we were established, we have succeeded in building up an attractive portfolio thanks to our selective and consistent investment approach. It is highly diversified in terms of sectors and vintages. We have invested in both promising first-time funds and established follow-on funds.”
The company committed approximately EUR 425 million to 27 European VC funds through programs supported by the ERP Special Fund and Future Fund. A notable achievement was fully investing the "Green Transition Facility" (GTF) within one and a half years instead of two.
KfW Capital's portfolio includes investments totaling around EUR 2.5 billion across 132 VC funds with diverse sector focuses including ICT, life sciences, industrial tech, and green tech.
The Federal Government's Future Fund has allocated over EUR 13 billion for investments in VC funds and start-ups until 2030. Currently, eleven building blocks are active within this initiative.
As an investment adviser for "Growth Fund Germany," KfW Capital facilitated raising about 70% private capital from institutional investors and large family offices.
Looking ahead to 2025, KfW Capital plans to maintain its investment volume while further developing the VC ecosystem through initiatives like ESG training and venture capital training programs with ESMT Berlin and Frankfurt School of Finance & Management.