Nearly two years after its final closing, the Growth Fund Germany has invested around EUR 825 million of its total EUR 1 billion fund volume in 41 venture capital (VC) target funds as of November 26, 2025. These investments have supported more than 360 technology companies across various sectors.
The Growth Fund Germany, structured and managed by KfW Capital on behalf of the Federal Government, is one of Europe’s largest VC funds of funds. It was created under the Future Fund facility and is managed operationally by Universal Investment Gruppe. More than 70% of the capital raised for the fund came from private investors, including new groups entering the VC asset class.
The portfolio shows broad diversification: 39% of commitments are in information and communication technologies (ICT), 35% in life sciences, and 26% in areas such as deep tech, industrial tech, climate tech, or food tech. Regarding investment stages, the fund allocates 54% to growth funds, 35% to early-stage funds, and 11% to generalist strategies.
Dr Jörg Goschin, Chief Executive Officer of KfW Capital, commented: “The Growth Fund has established itself as a strong instrument for growth capital in Europe. Its innovative structure has made it possible to achieve a smart interplay of public and private capital. What is particularly pleasing is that we were able to attract new investors from the private sector to the venture capital asset class. The investment focus of the Growth Fund Germany is on the important growth phase, during which the scaling and financing of the growth of technology firms takes place. We see further attractive opportunities for rounding off the portfolio for the remaining one fifth of the investment sum, both at VC fund level and for direct co-investments. Following the correction in valuations seen in the boom years of 2020 and 2021, now is a very good time for VC investments, and some very promising VC funds are in the fundraising phase.”
Dr Goschin also noted international interest: “The Growth Fund Germany as an export hit – this, too, is a strong signal for the market and for more private capital for the VC ecosystem.”
KfW Capital is preparing a second generation fund—Growth Fund II—with fundraising expected to start in 2026. This follow-on product will again seek participation from professional domestic and international investors such as insurers, foundations, family offices, superannuation funds and pension funds.
Further information about selected portfolio VC funds can be found on their website.