KfW Capital in 2024

Start-ups and young technology companies across all sectors – from life sciences to food tech and climate tech – are developing innovative solutions to the major challenges of our time. In order for these companies to grow and develop their innovative strengths, quick and sufficient access to venture capital (VC) is essential. As a VC fund investor and a 100% subsidiary of KfW, KfW Capital is the specialist institute for venture capital in Germany and pursues the objective of strengthening the capital base of VC funds through investments and further developing the VC ecosystem. This leverages a significant amount of private capital and attracts new investor groups to the VC asset class. As a result, start-ups and growth companies in Germany have better access to capital. KfW Capital invests both sector- and phase-agnostically as well as in a targeted manner in selected technology areas. Young technology companies in Germany are financed with at least the capital contributed to the VC funds by KfW Capital.

• VC fund investments: KfW Capital is one of Europe’s largest VC fund investors. As of 31 December 2024, KfW Capital has invested an amount of EUR 2.5 billion in 132 European VC funds with the support of the ERP Special Fund and the Future Fund, reaching more than 2,400 start-ups and innovative technology companies on a growth trajectory. KfW Capital’s VC fund portfolio is broadly diversified and comprises the following areas: ICT (information and communications technology): 45%, life sciences 22%, industrial tech 9%, generalist 24%. On average, the VC funds invest close to four times the capital contributed by KfW Capital in companies in Germany. Through various programmes, such as the “ERP VC Fund Investments”, KfW Capital invests around EUR 400 million per year (EUR 381 million in 2024) in VC funds, thereby making a significant contribution to strengthening the VC ecosystem.
• Future funds: KfW Capital is the coordinator of the federal future fund ("Participation Fund for Technologies of the Future"), which aims to strengthen companies in the capital-intensive growth phase. A total of ten different building blocks with a volume of EUR 13.6 billion are already active, with around EUR 6.2 billion pledged for VC funds and companies. KfW Capital itself is also the implementer of four building blocks, one of which, the Green Transition Facility (see below), has already been successfully invested.
• Growth Fund Germany (Wachstumsfonds Deutschland): As an investment adviser, KfW Capital acts in an advisory capacity for one of the largest umbrella funds in Europe, which invests in VC funds and which has a volume of EUR 1 billion. One year after the final closing (Nov. 2023), it has already committed more than half of its volume (EUR 599.3 million) in 31 VC funds.
• Climate tech: In 2024, KfW Capital was able to invest the Green Transition Facility Future Fund component: the aim was to invest around EUR 100 million in European VC funds in the climate tech segment and adjacent climate-relevant topic areas in two years, but in fact this target was met in just one and a half years. The funds have already called up 25% of the commitments. Start-ups in the climate tech segment in Germany are financed at least with the capital contributed by KfW Capital. KfW Capital has invested a total of EUR 286.6 million in 20 VC climate funds since 2018.
• Green tech: Climate technologies are a crucial growth market and, among other factors, contribute to strengthening Germany’s competitiveness. Participation in the financing of green tech is hugely important for KfW Capital: currently, one fifth of the VC funds supported by KfW Capital are invested specifically in this sector. So far, close to 300 green tech start-ups have already been reached.
• Through the Emerging Manager Facility, which is also a component of the Future Fund, KfW Capital invests in young, smaller VC funds managed by female or diverse teams. Emerging managers often have technological specialisms that can make important contributions to the transformation. KfW Capital made its first commitment in July 2024 to the Berlin climate technology fund Nucleus Capital, which was also the winner of the KfW Capital Award 2024 in the “Best Emerging Manager” category. The winners are chosen by an independent VC expert jury.

Legal notice:
The information contained in this online Annual Report 2024 is based on KfW’s Financial Report 2024, which you can download here. Should this online Annual Report 2024, despite the great care taken in preparation of its content, contain any contradictions or errors compared to the Financial Report, the KfW Financial Report 2024 takes priority.