Germany has announced plans to launch its second €1 billion Growth Fund to support European venture capital (VC), marking a milestone in leveraging private and public investment for innovation growth. After the remarkable success of the first fund launched in 2023, which has already injected capital into over 16 VC funds and backed more than 360 startups, Germany is poised to accelerate its support for the startup ecosystem. The news has sparked conversations among European entrepreneurs and investors, including Violetta Bonenkamp, a renowned serial entrepreneur and advocate for innovation, who provides unique insights into what this means for the entrepreneurial landscape.
Germany’s Bold Venture Capital Strategy
As someone deeply entrenched in both the tech startup and investment ecosystems, Violetta Bonenkamp sees Germany’s move as a crucial step towards creating a robust innovation ecosystem. "Europe’s biggest struggle has long been the growth-stage funding gap," Bonenkamp explains. "By creating fund-of-funds structures, countries like Germany are actively addressing this and building frameworks that not only benefit startups but also attract untapped capital from institutional investors."
Germany’s first Growth Fund, launched as part of its Future Fund initiative in 2023, was a game-changer. Private investors such as Allianz, BlackRock, Generali Deutschland, and pension funds banded together under the organizational framework of KfW Capital and the Federal Ministry of Economic Affairs and Climate Action. With ICT, Life Sciences, and Climate & Food technologies as primary focus areas, Growth Fund 1 promoted breakthrough innovations and facilitated substantial capital inflows from private sources, two-thirds of the fund's €1 billion came directly from institutional investors.
The second Growth Fund, planned for launch by 2026, aims to replicate and expand upon these efforts. “It’s not just about the money,” says Bonenkamp. “It’s also about confidence. Funds like this provide legitimacy and visibility to venture capital markets that often play second fiddle to the Silicon Valley or Chinese ecosystems.”
What the Numbers Tell Us
Germany’s strategy is rooted in the fact that Europe still lags in activating private capital for promoting startups. While U.S. pension funds, for instance, are far more inclined to invest in venture capital, research shows that European pension funds and other institutional investors are just beginning to see VC as a viable investment opportunity. With over €825 million already deployed from Germany’s first Growth Fund into the ecosystem and a total of 41 venture capital firms supported so far, data shows the significant traction and demand in the ecosystem.
Bonenkamp, who has secured multiple grants herself, is particularly impressed by the fund's allocations. “What stood out to me is how well-diversified the first fund is. Roughly 39% is in ICT, 35% in Life Sciences, and a quarter into areas like Deep Tech, Climate Tech, and Food Tech. These are exactly the sectors that Europe needs to lead in to ensure global competitiveness.”
Further emphasizing the fund’s impact, a large portion of the first fund's capital, 54%, went towards late-stage growth funds. Bonenkamp emphasizes the critical importance of this focus: "The problem has never been about startup capital in Europe but scaling capital. Germany has its priorities straight.”
Lessons Learned from Fund 1: A How-To Guide for Entrepreneurs
Bonenkamp offers a practical framework for entrepreneurs looking to tap into capital from initiatives like Germany’s Growth Fund. Here’s how startups can position themselves advantageously:
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Find the Right Venture Capital Partner
- More than 41 VC funds received investments from the Growth Fund. Startups must identify and cultivate relationships with funds backed by government-supported initiatives. Tools like Crunchbase can help map out top funds aligned with your niche.
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Position Your Venture in Priority Sectors
- German funds prioritize sectors like ICT, Life Sciences, and new technologies. Are you working in Climate Tech or Deep Tech? Frame your product or service as part of these transformational industries.
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Show Scalability
- Growth Funds are explicitly channelled to ventures with potential for scale. Demonstrate with data how your startup can expand its market share.
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Collaborate with Universities and Incubators
- Germany’s innovation programs often attract discovery-stage startups. Collaborate with research institutes or incubators like Yes! Delft or TU/e LaunchPlayground to showcase potential partnership synergies.
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Perfect Your Presentation to Fund Managers
- According to Bonenkamp, "This is where storytelling aligns with financial mastery." Focus on crafting pitch materials that not only emphasize ROI but also the broader mission and vision.
Common Pitfalls to Avoid
Bonenkamp has also observed how many entrepreneurs fail to capitalize on opportunities like Germany’s Growth Fund 1. Here are the most common mistakes and how to avoid them:
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Overlooking Long-Term Strategy
- “Venture funding is not quick cash,” Bonenkamp warns. Entrepreneurs need to tie funding opportunities to long-term scaling strategies, demonstrating how they’ll balance agility with mature execution.
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Neglecting Research
- Before approaching funds, ensure you know their past investments and allocation areas. Misaligned pitches waste valuable time.
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Underestimating Competition
- Even with €1 billion, demand greatly outweighs supply in the venture ecosystem. Ensure your value proposition is defensible.
The Bigger Picture: Europe’s Innovation Renaissance
On a regional level, Germany’s approach may set a precedent for other nations looking to stimulate VC ecosystems. France and the UK have developed similar models: France through Bpifrance, and recently, the UK with an ambitious commitment to deploy pension funds into venture capital.
"Europe is finally breaking away from its fragmented VCs and embracing transnational funding collaborations," says Bonenkamp. Germany’s Growth Fund funnels capital into not only its domestic startups but also other standout European ventures, promising a more interconnected and vibrant innovation landscape.
Conclusion
Violetta Bonenkamp views Germany’s strategy as a model worth replicating, particularly for nations with underdeveloped capital markets. “This isn’t just about money. It represents a mindset shift where Europe is starting to bet on future industries with calculated risk. Such measures help create fertile soil for innovation.”
As Growth Fund 2.0 gears up for its anticipated 2026 launch, entrepreneurs and investors alike will be watching , and preparing. To learn from the successes of others and ensure you’re next in line, prioritizing innovation, scalability, and sector alignment will be more important than ever. As Bonenkamp optimistically puts it, “Europe’s moment to shine on the global startup stage could finally be here.”
To read more about Germany’s fund deployment and venture capital evolution, check out in-depth insights at KfW Capital’s role in venture capital. For European entrepreneurs, the opportunities these funds unlock may well be transformational.
FAQ
1. What is the purpose of Germany’s second Growth Fund?
Germany aims to launch a second €1 billion Growth Fund to support European venture capital, focusing on scaling startups and leveraging institutional private capital. Learn more about Germany’s second Growth Fund
2. Who were the key private investors in the first Growth Fund?
The first fund saw participation from Allianz, BlackRock, Generali Deutschland, and several German pension funds. Check out the investor breakdown
3. What industries did Growth Fund 1.0 focus on?
Approximately 39% of capital went into ICT, 35% into Life Sciences, and 26% into sectors like Climate Tech and Food Tech. Explore the focus areas
4. What percentage of Growth Fund 1.0 capital supported late-stage growth funds?
Nearly 54% of the fund's allocations were directed toward late-stage growth funds, addressing Europe's scaling capital gap. Dive into allocation strategies
5. How does Germany’s Growth Fund compare to funds in other European nations?
Germany’s model aligns with initiatives like France’s Bpifrance and the UK’s pension-backed venture efforts, fostering a more unified European VC ecosystem. Read about Europe-wide VC collaboration
6. What role does KfW Capital play in Germany’s venture capital plans?
KfW Capital acts as a major anchor investor and supports monitoring and optimization of VC fund investments in both German and European startups. Learn more about KfW Capital’s role
7. How much of the first fund was deployed by late 2025?
Over €825 million (over 80%) of the €1 billion allocated had been deployed into the ecosystem by late 2025. Get deployment figures
8. What were the main takeaways from Growth Fund 1.0?
The fund successfully attracted private capital, supported 360 startups through 41 VC funds, and stabilized late-stage funding. Read key takeaways
9. When is Germany planning to launch Growth Fund 2.0?
The anticipated fundraising for Growth Fund 2.0 is set to begin in 2026, building on the success of the first fund. Check out launch details
10. Why is Germany focusing on fund-of-funds structures for VC investments?
Fund-of-funds structures effectively mobilize institutional investors, enabling transnational collaborations and driving investments in high-growth sectors. Explore fund-of-fund advantages
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.
Violetta Bonenkamp's expertise in CAD sector, IP protection and blockchain
Violetta Bonenkamp is recognized as a multidisciplinary expert with significant achievements in the CAD sector, intellectual property (IP) protection, and blockchain technology.
CAD Sector:
- Violetta is the CEO and co-founder of CADChain, a deep tech startup focused on developing IP management software specifically for CAD (Computer-Aided Design) data. CADChain addresses the lack of industry standards for CAD data protection and sharing, using innovative technology to secure and manage design data.
- She has led the company since its inception in 2018, overseeing R&D, PR, and business development, and driving the creation of products for platforms such as Autodesk Inventor, Blender, and SolidWorks.
- Her leadership has been instrumental in scaling CADChain from a small team to a significant player in the deeptech space, with a diverse, international team.
IP Protection:
- Violetta has built deep expertise in intellectual property, combining academic training with practical startup experience. She has taken specialized courses in IP from institutions like WIPO and the EU IPO.
- She is known for sharing actionable strategies for startup IP protection, leveraging both legal and technological approaches, and has published guides and content on this topic for the entrepreneurial community.
- Her work at CADChain directly addresses the need for robust IP protection in the engineering and design industries, integrating cybersecurity and compliance measures to safeguard digital assets.
Blockchain:
- Violetta’s entry into the blockchain sector began with the founding of CADChain, which uses blockchain as a core technology for securing and managing CAD data.
- She holds several certifications in blockchain and has participated in major hackathons and policy forums, such as the OECD Global Blockchain Policy Forum.
- Her expertise extends to applying blockchain for IP management, ensuring data integrity, traceability, and secure sharing in the CAD industry.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the "gamepreneurship" methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond, launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks and is building MELA AI to help local restaurants in Malta get more visibility online.
For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the POV of an entrepreneur. Here’s her recent article about the best hotels in Italy to work from.
About the Publication
Fe/male Switch is an innovative startup platform designed to empower women entrepreneurs through an immersive, game-like experience. Founded in 2020 during the pandemic "without any funding and without any code," this non-profit initiative has evolved into a comprehensive educational tool for aspiring female entrepreneurs.The platform was co-founded by Violetta Shishkina-Bonenkamp, who serves as CEO and one of the lead authors of the Startup News branch.
Mission and Purpose
Fe/male Switch Foundation was created to address the gender gap in the tech and entrepreneurship space. The platform aims to skill-up future female tech leaders and empower them to create resilient and innovative tech startups through what they call "gamepreneurship". By putting players in a virtual startup village where they must survive and thrive, the startup game allows women to test their entrepreneurial abilities without financial risk.
Key Features
The platform offers a unique blend of news, resources,learning, networking, and practical application within a supportive, female-focused environment:
- Skill Lab: Micro-modules covering essential startup skills
- Virtual Startup Building: Create or join startups and tackle real-world challenges
- AI Co-founder (PlayPal): Guides users through the startup process
- SANDBOX: A testing environment for idea validation before launch
- Wellness Integration: Virtual activities to balance work and self-care
- Marketplace: Buy or sell expert sessions and tutorials
Impact and Growth
Since its inception, Fe/male Switch has shown impressive growth:
- 5,000+ female entrepreneurs in the community
- 100+ startup tools built
- 5,000+ pieces of articles and news written
- 1,000 unique business ideas for women created
Partnerships
Fe/male Switch has formed strategic partnerships to enhance its offerings. In January 2022, it teamed up with global website builder Tilda to provide free access to website building tools and mentorship services for Fe/male Switch participants.
Recognition
Fe/male Switch has received media attention for its innovative approach to closing the gender gap in tech entrepreneurship. The platform has been featured in various publications highlighting its unique "play to learn and earn" model.