German government boosts climate action with launch of €1B fund for innovative startups

The German government announced on Thursday, February 2, that it has launched a new €1B growth capital under the DeepTech & Climate Fund (DTCF) developed by the Federal Ministry of Economics and Climate Protection and the Federal Ministry of Finance. 

The DTCF is a new fund that invests in the growth of companies with future technologies with immediate effect. The capital comes from the federal government’s future fund and the ERP special fund.

The growth capital will further expand Germany’s technology location and venture capital financing. 

Federal Finance Minister, Christian Lindner, says, “New business models are the prerequisite for economic growth and future prosperity. We want to set up the DeepTech & Climate fund as an anchor investor for new German world market leaders.” 

He adds, “For this, we are investing €1B. However, capital alone does not determine success. It is now a matter of making the best of every euro invested. Such a task belongs in qualified hands.”

The Ministries says that from February 1, Dr. Elisabeth Schrey, with a background in industrial engineering and innovation management, and co-managing director Tobias Faupel, will be responsible for implementing investments.

Anna Christmann, the representative of the Federal Ministry of Economics and Climate Protection for the digital economy and startups, says, “With Elisabeth Schrey we were able to gain a very competent managing director. She brings deep expertise and a sure eye for investments in deep tech companies. Future technologies are also key to overcoming the challenges of the climate crisis. 

“Therefore, the DTCF creates an attractive financing environment for companies that contribute to the renewal of the economy towards climate neutrality with their technologies,” Christmann continues.

The fund focuses on the capital-intensive growth phase of companies in deep and climate tech areas with a validated business model.

The fund invests in deep tech areas such as Industry 4.0, robotics, artificial intelligence, quantum computing, and process automation, and in companies with a technology-based business model such as digital health, new energy, smart city, new materials, and selected biotech areas. 

The preparatory measures started in the fourth quarter of 2022. The first investment is about to be completed.

Federal Minister of Economics, Robert Habeck, says, “Startups are a key building block for the long-term competitiveness and climate-friendly transformation of our economy. With the start of the DeepTech & Climate Fund, we are implementing an important part of the startup strategy decided by the federal government.”

Habeck adds, “By financing new types of climate-friendly technologies, the fund strengthens Germany as a location for innovation and helps independent and successful technology companies to develop. We are thus offering deep-tech companies long-term prospects in Germany.”