Dominik Steinkühler

Investment Landscape Germany

The session’s core message was that Germany’s startup-financing landscape is becoming more capital-rich and more structurally coordinated, but founders still need to understand which instruments fit which stage of their journey. The moderator framed the discussion around where money can be found and what has changed in Germany’s investment environment, then introduced Dominik Steinkhler of KfW and Gregor Haidl of HTGF. Steinkhler highlighted the newly announced second phase of the WIN Initiative, expanding from a €12 billion private-capital mobilization effort to a target of €25 billion, alongside structural measures intended to improve the startup lifecycle from founding through exit. Haidl added that market momentum is visible through more capital, the Scale Up Europe Fund, higher investment volume this year than the entire previous year, and rising interest in deep tech, climate tech, and sovereignty tech. The conversation then turned to the role of HTGF as a central direct-investment vehicle for the German Economic Ministry. Haidl explained that HTGF is evolving beyond early-stage first tickets into a multistage platform, especially after integrating the DeepTech & Climate Fonds, described as a €1 billion fund for climate and deep tech investments from Series A and B onward. On later-stage funding, Steinkhler cautioned that Germany is still not at the level of the U.S., but pointed to several German mega-rounds above €100 million as evidence that larger transaction capacity now exists. Both speakers described the ecosystem as maturing, with larger rounds and the hope of larger exits helping convince the next generation of founders that ambitious company-building is possible in Germany. Steinkhler outlined structural measures aimed at unlocking more institutional capital, especially by creating vehicles that make venture and growth investments easier for large pension-system investors. He described KfW Capital’s fund-of-funds approach, including a vehicle of more than €1 billion and a follow-on structure designed to give institutions a track record and scale they can allocate to. The moderator listed multiple instruments, including Deutschlandfonds, Zukunftsfonds, Scale-up Direct, FOAK first-of-a-kind funding, Solvency II changes, WIN, and Wachstumsfonds. Steinkhler clarified that Deutschlandfonds is a broader programme bracket with €30 billion in guarantees intended to generate €130 billion of economic investment, while FOAK will combine €300 million from KfW with additional private money for first-of-a-kind assets. The final available segment focused on the practical reality for founders, especially in deep tech. Haidl argued that €300 million may not sound large in isolation, but is relevant if it crowds in private capital and targets the difficult first-of-a-kind stage. He stressed that deep tech financing differs from software because companies often face major inflection points before revenue is available for analysis. His main advice was that deep tech founders should not rely only on equity; they must orchestrate equity, debt, and grants, understand which instrument fits which stage, and build the financial education and networks needed to combine them effectively. Compared with two years ago, he said founders now need more substance, capital efficiency, and early market traction, even in hardware.