CODE Capital Launches with 10 Million Euros

Berlin’s CODE University of Applied Sciences has long been regarded as one of Europe’s most successful universities for entrepreneurship. With CODE Capital, the university’s startup ecosystem now has its own early-stage fund, specifically designed to bridge the funding gap in the very earliest stages of startup development. The new fund is launching with a target volume of ten million euros and is aimed at technology-driven founders associated with the university.

CODE Capital was initiated by serial entrepreneurs and investors Stephan Schambach and Younes Ouaqasse. Prof. Dr. Julia Köhn, professor of entrepreneurship at CODE and herself a serial entrepreneur and investor, will serve as the fund’s chief operating officer.

Funding Where Others Have Not Yet Invested

With the new fund, CODE Capital is deliberately positioning itself as a so-called “first-check investor.” Investments will be made at a stage when traditional venture capital funds, business angels, banks, or public funding programs are often still hesitant to invest.

The initial investments are expected to range between 50,000 and 100,000 euros. The goal is to support founding teams as early as the initial development phases and, if their development is successful, to accompany them over the long term through later financing rounds or a potential exit.

An independent investment committee makes decisions regarding the investments. A specialized German asset management company handles the regulatory administration of the fund.

One of Europe’s Most Successful Startup Universities

The fund’s track record is remarkable. According to the university, students and alumni of CODE University have raised more than 250 million euros in venture capital over the past eight years. Nine startup teams have already been accepted into the renowned U.S. accelerator program Y Combinator. The total value of the companies that have emerged from the university’s ecosystem now exceeds one billion euros.

In the latest ranking by the venture capital firm Redstone, the Berlin-based university is considered Europe’s leading startup university. At the same time, it ranks among the top institutions in German university rankings for computer science, data science, and cybersecurity.

Entrepreneurial Network as a Competitive Advantage

A key component of the fund’s model is direct access to experienced entrepreneurs. The fund’s founders rely on the university’s proximity and early contact with promising startup teams.

It is precisely this information advantage that is intended to enable the early identification of exceptional talent and technologies—long before they appear on the radar of traditional investors. Selected teams will also benefit from personal coaching and close interaction with experienced founders and investors.

Focus on Technical Founders and Deep-Tech Topics

CODE Capital aims to invest across Europe and is open to all technologies—though with a clear focus on so-called “builder-founders,” that is, founders who develop the technological foundation of their companies themselves.

Preferred areas of focus include, in particular, specialized AI applications for sectors such as manufacturing and healthcare, technological infrastructure for more powerful computing processes, and solutions in the field of quantum-secure encryption.

To ensure the often-critical speed advantage in early-stage companies, the fund also promises an investment decision within 14 days under standardized terms.

A New Model for Early-Stage Financing?

CODE Capital represents not only the launch of another early-stage fund but also an interesting model for integrating universities, entrepreneurship, and venture capital. While universities traditionally impart knowledge and support incubators, CODE University is now also positioning itself as an institutional early-stage investor for its own founders.

If the model proves successful, it could serve as a role model for other European university ecosystems.