Federal government plans reorganization of startup financing

The German government has announced a strategic realignment of public venture capital funding. The DeepTech & Climate Fund (DTCF) is to be continued in future under the umbrella of the High-Tech Gründerfonds (HTGF). The aim is to create a bundled, high-performance investment platform that supports technology-oriented start-ups and scale-ups from the foundation to the growth phase.

Consistent financing architecture for key technologies

The planned integration will create a structure that bundles public and private funds and thus creates a more robust capital base. Both funds bring in complementary teams of experts and address key future fields such as energy and quantum technologies, semiconductors, biotechnology, industrial transformation, AI, software and new materials. HTGF is to take over the management of DTCF from February 1, 2026. The details of the integration are currently being coordinated.

New HTGF seed fund from mid-2027

At the same time, the German government has commissioned the HTGF to prepare the fifth generation of the HTGF seed fund. This is set to be launched in mid-2027 and will directly follow on from the current HTGF IV fund. The aim is to strategically continue the successful approach of public-private early-stage financing.

Voices from the funds: complementary strengths of both platforms

HTGF Managing Director Dr. Achim Plum emphasizes that a joint platform enables end-to-end innovation financing, from the initial idea to scaling up to market leader. Examples such as FMC or Proxima Fusion show how well the approaches of both funds complement each other.

With the vision of a joint investment platform, we are creating the public-private VC platform that Germany and Europe need now...

Dr. Achim Plum, Managing Director of HTGF

DTCF Managing Director Dr. Elisabeth Schrey refers to a portfolio of 19 companies built up in just three years. Large syndicates, such as The Exploration Company or Cylib, have provided start-ups in early growth phases with additional time for development and scaling. Managing Director Tobias Faupel adds that the close cooperation with HTGF has existed since the beginning and will continue seamlessly with the integration.

The new structure is intended to further strengthen the deep tech segment. This is an area that requires particularly intensive and reliable financing due to long development and capital cycles. The DTCF remains a central module of the Future Fund and continues to focus on disruptive technologies.

Classification of theFederal Government

One of the central questions of our time is: Where will our prosperity of tomorrow come from? One key lies in innovative strength.

Dr. Janina Jänsch, Head of Department at the Federal Ministry for Economic Affairs and Energy (BMWE)

According to Dr. Janina Jänsch (BMWi), the DTCF shows how targeted growth financing can drive innovation in Germany. A VC platform under the established name HTGF would be a logical next step to pool public and private forces more efficiently and ensure the competitiveness of the technology ecosystem.

Key players in innovation financing

The HTGF is regarded as Germany's most active early-stage investor and has supported over 800 start-ups since 2005. The DTCF invests up to EUR 50 million per company and focuses on DeepTech and ClimateTech solutions. Both funds are supported by resources from the Future Fund and private investors. Launched in 2021, the Future Fund has a volume of 10 billion euros and strengthens the growth financing of innovative start-ups in Germany as an overarching umbrella instrument.