BMWE: 1.6 billion euros for innovation – Federal Ministry of Economics and EIF expand start-up financing with EIF German Equity

Under the new “EIF German Equity” program line, the partnership that has existed since 2004 is being expanded. The mandate is open to all sectors and therefore covers future technologies such as artificial intelligence, data-driven applications, FinTech, digitalization and industrial innovation through to energy, production and life science technologies. The aim is to put Germany in a stronger position to create scalable business models and international technology leaders from excellent innovations.

Supplemented by existing joint growth and scale-up programs of the German government with the EIF, a program portfolio with a total volume of over ten billion euros (including the German contribution to the European Tech Champions Initiative) is being created that covers all company phases. Founders will gain more reliable access to private capital, while institutional investors will find a strong public anchor that sets governance and ESG standards and mobilizes private growth capital.

Gitta Connemann, Parliamentary State Secretary to the Federal Minister for Economic Affairs and Energy: “We are investing where the future is being created: in young technology companies. Together with the European Investment Fund, we are providing 1.6 billion euros for this purpose. The money is working. Because we are investing side by side with private investors and thus mobilizing additional private capital. We are strengthening the equity base. We are opening up better access to professional venture capital and growth funds. And we also give new fund managers a chance. This is how viable business models are created. This is how innovations grow into companies. And this is how we create the technology leaders of tomorrow – here in Europe. Together with our existing growth and scale-up initiatives, this creates an integrated financing concept. It closes gaps. It gives founders planning security. And it ensures that good ideas do not migrate abroad, but grow here.”

Nicola Beer, Vice-President of the European Investment Bank (EIB): “EIF German Equity shows how European partnership works: Together with Germany, we are further expanding one of the most successful equity programs in Europe. Together with instruments such as the European Tech Champions Initiative, we are creating a coordinated funding architecture from the first VC ticket to growth financing. Access to equity is crucial for Europe’s strategic sovereignty – this is exactly where this mandate comes in.”

Merete Clausen, Member of the Executive Board of the European Investment Fund (EIF): “Since 2004, the cooperation with the BMWE has shown how effective risk-taking capital is. It has created new management teams, attracted high-quality VC funds to Germany and reached thousands of technology-oriented companies. The expansion of the program builds on this and strengthens deep tech, life sciences, energy and industrial technologies in particular – areas that are particularly dependent on efficient fund structures and European scaling opportunities.”

Continuation of a successful model

EIF German Equity is renewing and expanding its proven cooperation on the basis of the ERP Special Fund and EIF’s own funds. The measure is a central component of German innovation policy, which focuses on spin-offs, high-tech start-ups and future SMEs in a technology-open, market-based and growth-oriented manner.

Since 2004, around 290 fund investments with a total volume of around 49 billion euros have been made, enabling more than 6,000 corporate financings to date. Successfully supported companies include DeepL, GetYourGuide, N26, Personio, Trade Republic, Flix and Home24 – examples of the impact of German and European fund programs.

Focus on innovation

As a fund of funds, EIF German Equity invests in venture capital and growth funds with a focus on Germany, supplemented by European funds that offer clear added value for the location. In line with market developments, the focus of past and future investments is on ICT, life sciences, energy-related innovations, deep tech and other converging future technologies.

One key objective is to mobilize private capital: EIF investments act as a quality signal and regularly activate a multiple of public funds – often around five times as much.

Effect for start-ups, scale-ups and the venture capital ecosystem

Innovative companies benefit from improved access to capital, a larger number of active fund managers and better scaling prospects. As a long-term anchor investor, the EIF sets high standards for governance, transparency and ESG, thereby strengthening the quality and stability of the market.

The entire start-up and venture capital ecosystem gains from a reliable public partner that mobilizes private capital, attracts international investors and supports the development of a powerful, diversified fund manager spectrum. EIF German Equity thus makes a decisive contribution to positioning Germany as a leading and competitive venture capital location in Europe.

TechEU: National strength with European leverage

EIF German Equity contributes to TechEU, the pan-European innovation strategy of the EIF and EIB. By promoting early-stage innovation in Germany and dovetailing with European platforms such as the European Tech Champions Initiative (ETCI), a clear European added value is created:

National programs create the innovation pipeline, EU initiatives provide the growth capital for Europe’s future tech champions. This two-tiered approach closes funding gaps, strengthens Europe’s technological sovereignty and combines national innovation goals with the European ambition to advance deep tech and future technologies on a large scale.

Background information

EIB Group: The EIB Group consists of the European Investment Bank (EIB) and the European Investment Fund (EIF). It is the European Union’s financing institution and supports projects that contribute to Europe’s competitiveness, sustainable growth and the financing of innovation. Along eight key strategic priorities, it finances investments that contribute to the EU’s policy objectives – including climate action and environment, digitalization and technological innovation, security and defence, economic and social cohesion, agriculture and bioeconomy, social infrastructure, the Capital Markets Union and a stronger Europe in a more peaceful and prosperous world.

The EIB is the long-term financing institution of the European Union and is owned by its Member States.

The EIF is part of the EIB Group and specializes in venture capital, growth financing and guarantees. It strengthens the European innovation and SME ecosystem by supporting financial intermediaries such as venture capital funds and promotional banks. Its investment programs include numerous European and national initiatives, including German innovation and growth programs.

Together, the EIB Group signed almost EUR 89 billion in new financing for over 900 high-impact projects in 2024, strengthening Europe’s competitiveness and security.

Germany is one of the EIB Group’s most important partners. In Germany, the EIB supports in particular investments in energy and infrastructure projects, innovation, digitalization and sustainable growth. In recent years, the EIF has played a central role in building and developing the German venture capital ecosystem: since 2004, it has invested over EUR 14 billion in Germany, supporting more than 3,000 companies with equity and over 126,000 other companies with guarantees. EIF-backed funds have contributed significantly to the rise of leading German VC managers and enabled the emergence of numerous technology success stories in Germany.

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Further links

👉 www.bundeswirtschaftsministerium.de  

Photo: BMWE / Andreas Mertens