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€1.6 billion for innovation: German Ministry for Economic Affairs and EIF expand startup financing through EIF German Equity

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13 Jan 2026# min read

Berlin, 12 January 2026

With an additional €1.6billion, the German Federal Ministry for Economic Affairs and Energy and the European Investment Fund (EIF) are joining forces to support technology‑driven startups. The goal is to strengthen the equity base of young tech companies and significantly improve access to professional venture capital and growth funds.

The new EIF German Equity programme line builds on the partnership established in 2004. The mandate is open to all sectors and therefore covers future-focused technologies such as artificial intelligence, data-driven applications, fintech, digitalisation and industrial innovation, as well as energy, manufacturing and life science technologies. This will place Germany in a stronger position to turn world-class innovation into scalable business models and global technology leaders.

Together with existing growth and scaleup programmes run jointly by the German government and the EIF, the programme portfolio will be worth more than €10 billion (including Germany’s contribution to the European Tech Champions Initiative), covering all stages of company development. Founders will gain more reliable access to private capital, while institutional investors will benefit from a strong public anchor investor that sets the bar on environmental, social and governance standards and mobilises private growth capital.

Energy, said: “We are investing where the future is happening: in young tech companies. Together with the European Investment Fund, we are providing €1.6 billion precisely for this purpose. This money will make a real difference, because we are investing shoulder to shoulder with private investors, helping to mobilise additional private capital. We are strengthening equity bases. We are creating better access to professional venture capital and growth funds. And we are giving new fund managers a chance. This is how viable business models emerge. This is how innovations grow into businesses. And this is how tomorrow’s tech champions will come to life – right here in Europe. Combined with our existing growth and scaleup initiatives, the result is a comprehensive financing framework. It will close gaps. It will give founders planning certainty. And it will ensure that good ideas stay with us and grow here instead of moving abroad.”

EIB Vice-President Nicola Beer said: “EIF German Equity is proof that European partnerships deliver results: together with Germany, we are expanding one of Europe’s most successful equity programmes. Alongside instruments such as the European Tech Champions Initiative, we are creating a coordinated support architecture – from the first venture capital ticket through to growth financing. Access to equity capital is vital for Europe’s strategic autonomy – and that is exactly where this mandate comes in.”

Since 2004, our collaboration with the German Ministry for Economic Affairs has shown how effective venture capital can be. ”

- EIF Deputy Chief Executive, Merete Clausen

"It has produced new management teams, attracted high‑quality venture capital funds to Germany and supported thousands of tech‑oriented businesses. Expanding the programme will build on this success, with a strong focus on deep tech, life sciences, and energy and industrial technologies – areas that are especially reliant on robust fund structures and opportunities to scale across Europe."

Continuing a proven success model

EIF German Equity will renew and expand the successful collaboration based on the ERP special fund and the EIF’s own funds. It is a key element of Germany’s innovation policy – technology‑open, market‑driven and focused on growth, supporting spin‑offs, high‑tech startups and the small and medium businesses of tomorrow.

Since 2004, around 290 fund investments worth a total of approximately €49 billion have been made, financing more than 6 000 companies and mobilising over €49 billion. Successfully supported companies include DeepL, GetYourGuide, N26, Personio, Trade Republic, Flix and Home24 – examples that highlight the impact of German and EU fund programmes.

Focus on innovation

As a fund‑of‑funds, EIF German Equity invests in venture capital and growth funds focused on Germany, as well as European funds that offer clear added value for the German market. Reflecting market trends, past and future investments concentrate on information and communication technologies, life sciences, energy‑related innovations, deep tech and other converging future technologies.

A key objective is to mobilise private capital: EIF participation provides a seal of approval that draws in private investors, typically multiplying public funds by around five.

Impact for startups, scaleups and the venture capital ecosystem

Innovative companies will benefit from improved access to capital, a greater number of active fund managers and better prospects for scaling their businesses. As a long-term anchor investor, the EIF sets high standards for transparency and environmental, social and governance practices, reinforcing the market’s quality and stability.

The entire startup and venture capital ecosystem will benefit from having a reliable public partner that crowds in private capital, attracts international investors and helps build a strong, diverse pool of fund managers. EIF German Equity therefore plays a crucial role in positioning Germany as a leading, competitive venture capital hub in Europe.

TechEU: National strength with European leverage

EIF German Equity contributes directly to TechEU, the pan‑European innovation strategy of the EIF and the EIB. By financing early‑stage innovation in Germany and dovetailing with EU platforms such as the European Tech Champions Initiative, the programme generates clear European added value.

National programmes create the innovation pipeline, while EU initiatives provide the growth capital needed for Europe’s future tech champions. This two‑step approach closes financing gaps, strengthens Europe’s technological sovereignty and aligns national innovation goals with Europe’s goal to advance deep tech and next-generation technologies on a broad scale.

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Background information

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. The EIB finances investments in eight core priorities that support EU policy objectives: climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and the bioeconomy, social infrastructure, a stronger Europe in a more peaceful and prosperous world and Europe’s capital markets union.   

The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 high-impact projects in 2024, boosting Europe’s competitiveness and security.    

 Approximately half of the EIB's financing within the EU targets cohesion regions, where per-capita income is below the EU average, while almost 60% of annual EIB Group investments support climate action and environmental sustainability.