Germany Launches New EUR 660-Million Fund for Start-Ups

The new money will also come in part from the European Recovery Fund and is aimed at giving the best start-ups in the HTGF access to later-round financing. In exceptional cases, the companies could receive up to EUR 50 million.

The HGTF focuses on innovative, technology start-ups working in key areas for the future. It currently manages some EUR 1.4 billion in capital. It has attracted more than 45 private investors and led to 180-plus exits and initial public offerings.

“Since it was initiated by the economics ministry in 2005, the High-Tech Gründerfonds has financed over 750 company-founding teams and made a significant contribution to the German start-up scene,” said Minister for Economic Affairs and Climate Action Robert Habeck in a statement. “Now thanks to Future Fund assets, it will have the chance with HGTF Opportunity to target the best young companies for millions of euros in later financing rounds.”

“With HTGF Opportunity, we’ll be able to grant assets to the very best HTGF portfolio companies so that they can significantly grow and assume leading market positions,” added HTGF head Alex von Frankenberg. “More international champions need to emerge from the very successful HTGF portfolio and the German start-up ecosystem, and that is what will happen.”