Germany is putting another €1.6 billion into startup financing. The German Federal Ministry for Economic Affairs and Energy and the European Investment Fund (EIF) are expanding their partnership to help tech companies access venture capital and growth funds, the EIF announced. The new EIF German Equity program will support startups working on artificial intelligence, fintech, digitalization, energy tech, manufacturing, and life sciences—aiming to turn German innovation into global tech leaders.
The program builds on a partnership that started in 2004. Combined with existing growth and scaleup initiatives, including Germany’s contribution to the European Tech Champions Initiative, the total portfolio is now worth over €10 billion. That covers all stages of company development, giving founders more reliable access to private capital while bringing in institutional investors who want a strong public anchor.
“We are investing where the future is happening: in young tech companies,” said Germany’s Minister for Economic Affairs and Energy. “This money will make a real difference, because we are investing shoulder to shoulder with private investors, helping to mobilise additional private capital.”
The goal is to close financing gaps, give founders planning certainty, and keep good ideas in Europe instead of watching them move abroad.
EIB Vice-President Nicola Beer called the program proof that European partnerships work. “Together with Germany, we are expanding one of Europe’s most successful equity programmes,” she said. The support runs from first venture capital tickets through growth financing, which matters for Europe’s strategic autonomy. Access to equity capital helps European companies compete without depending on outside funding sources.
Since 2004, the collaboration has made around 290 fund investments worth roughly €49 billion, financing over 6,000 companies and mobilizing more than €49 billion in total. Successfully backed companies include DeepL, GetYourGuide, N26, Personio, Trade Republic, Flix, and Home24. EIF German Equity works as a fund-of-funds, investing in venture capital and growth funds focused on Germany and European funds with clear value for the German market. EIF participation typically multiplies public funds by about five, drawing in private investors who see it as a seal of approval.
