For the first time, a broad coalition of 24 venture and growth investors is approaching insurance companies, pension funds, welfare schemes, and foundations with a unified message. The goal is to mobilize more institutional capital for innovative technology companies in Germany and thus close one of the largest financing gaps in the domestic startup ecosystem.
The participating funds include HV Capital, Earlybird, Lakestar, Project A, UVC Partners, Speedinvest, Cherry Ventures, Headline, HTGF, and Vsquared Ventures. The forum serves as a platform for dialogue between institutional investors, venture capital managers, and policymakers.
15 billion euros in additional growth capital as target
At the center of the initiative is the “German Venture & Growth Playbook”. The document is designed to introduce institutional investors to the venture capital asset class. It also uses data to explain return-risk profiles and possible entry strategies. The initiators argue that with stronger participation from institutional investors, approximately 15 billion euros of existing private capital could be mobilized annually for German growth companies.
The initiative was presented at the “Future at the Table” event during the SuperReturn conference in Berlin. Guests included Federal Minister for Economics Katherina Reiche and KfW CEO Stefan Wintels.
Why institutional capital is crucial for the startup ecosystem
While German startups increasingly have access to capital in their early stages, financing larger growth rounds remains a challenge. Many companies rely on international investors in later stages or shift their growth activities abroad. At the same time, German insurance companies and pension funds have traditionally invested relatively little in venture capital.
This is precisely where the GVGF comes in. The forum aims to address potential reservations about this asset class and establish venture capital as a long-term portfolio component. The accompanying playbook is aimed at institutional investors and explains how venture and growth capital can be strategically integrated into existing portfolios. It also addresses questions of portfolio construction and diversification, highlights the unique features of long-term investment horizons of up to twelve years, and contextualizes current market conditions. This is complemented by analyses of return potential and risks, which are intended to serve institutional investors as guidance for entering the asset class.
Munich investors shaping the initiative
The initiative is particularly relevant for the Munich startup ecosystem. Several of the most important capital providers for Bavarian technology startups are involved, including HV Capital, UVC Partners, Lakestar, Speedinvest, Vsquared Ventures, and High-Tech Gründerfonds. Munich has been one of Europe’s leading venture capital hubs for years and could particularly benefit from stronger mobilization of institutional capital.
Deeptech, AI, climate tech, and industrial tech startups in particular often require large capital amounts over long development cycles. Additional funding from insurance companies, pension funds, or foundations could help finance more of these companies through to international scaling while remaining in Germany.
