As one of Germany’s most active early-stage investors, HTGF has invested in over 750 startups since its inception. It covers areas such as digital tech and industrial tech as well as life sciences, chemicals, and more. This makes it one of the most successful investors in the German venture capital market today. For these investments, HTGF has access to four early-stage funds in total.
With the new Opportunity Fund, HTGF now aims to increase the volume of later-stage financing rounds according to actual needs. Growth financing in Germany lags considerably behind other nations such as the USA. This is evident from the fact that in these rounds, a large portion of the money often comes from American and European sources. With the new fund, the High-Tech Gründerfonds can typically invest up to €30 million, and in exceptional cases up to €50 million, in selected portfolio companies. It always finances jointly with one or more private investors. The Opportunity Fund is fully integrated into HTGF’s existing structure. Ulrich Schmitt, partner at HTGF, and Anke Caßing, principal at HTGF, serve as chief investment officers.
The German federal government is thus strengthening its commitment to growth financing and implementing another measure of its startup strategy. It is providing funds from the Future Fund and the ERP special assets for this purpose. The private fund investors of HTGF’s four early-stage funds will have the opportunity to participate in this initiative through a separate fund. The Opportunity Fund is launching with a fund volume of €660 million.
“Another important boost for Germany’s entire startup location”
Robert Habeck, federal minister for economic affairs and climate protection, explains:
“Since its initiation by the BMWK in 2005, the High-Tech Gründerfonds has financed over 750 founding teams and made a significant contribution to revitalizing the German startup scene. Now, with the help of the Future Fund, it is being enabled to support the best companies in later financing rounds through HTGF Opportunity with additional millions of euros in a targeted manner. This is a central pillar of our startup strategy and another important boost for Germany’s entire startup location.”
Christian Lindner, federal minister of finance, adds:
“Germany’s founders are the engine for future growth. They shape our innovative strength and create new jobs. That’s why I’m all the more pleased that with the HTGF Opportunity Fund, we’re able to support selected companies in later growth phases with large financing amounts. Only if we succeed in mobilizing more private capital will the financing conditions for startups in Germany improve sustainably. It is up to us to create the right framework conditions to achieve economic transformation and ensure that growing and emerging companies establish themselves long-term in Germany.”
And Alex von Frankenberg, managing director of HTGF, says:
“With the HTGF Opportunity Fund, we will be able to provide the very best HTGF portfolio companies with the resources to grow significantly larger and achieve market-leading positions. Ideally, they will then reach a size that enables them to continue growing as new independent companies through initial public offerings. More international champions must and will emerge from the highly successful HTGF portfolio and German startup ecosystem. We thank our fund investors for their trust.”
