KfW Capital begins fundraising for Wachstumsfonds II

KfW Capital will begin fundraising for its Wachstumsfonds II fund of funds starting April 1, 2026. This is the second fund generation of the successful Wachstumsfonds Deutschland and targets a total volume of approximately one billion euros from institutional investors in Germany and abroad.

The new fund aims to provide investors with broadly diversified access to the European venture asset class through a balanced portfolio of VC funds and direct co-investments, indirectly participating in around 1,000 innovative technology firms. The investment strategy focuses on established VC fund managers with a proven track record, with a regional focus on Germany and Europe. Later-stage investments are the main focus.

Both the German Federal Government and KfW Capital will act as anchor investors, contributing significant own investments of 200 million euros and 120 million euros, respectively. The fund will pursue a profit-oriented strategy with a balanced risk profile, and may also invest in venture debt funds, co-investments, and secondaries.

Government officials highlighted the fund's importance in attracting new investors to the German venture capital market, mobilizing private capital, and providing necessary financial backing for startups and scale-ups. KfW CEO Stefan Wintels described the fund as an example of successful interplay between private and public capital.

The predecessor fund, Wachstumsfonds Deutschland, is nearly fully invested with commitments of approximately 870 million euros to 43 target funds. KfW Capital CEO Dr. Jörg Goschin noted the positive development of the European venture asset class and strong investor interest.