KfW Invests for Third Time in High-Tech Start-up Fund
KfW is participating for the third time in the High-Tech Start-up Fund (HTGF), aiming to raise up to EUR 300 million in seed capital for technology companies.
Frankfurt – KfW, a state-owned development bank, is increasing its commitment to technology startups by investing in the third funding round of the High-Tech Start-up Fund (HTGF). The new fund, HTGF III, plans to raise up to EUR 300 million to provide seed capital for research and development-focused technology startups.
The German Federal Government is the largest investor in the fund with up to EUR 170 million, followed by KfW's commitment of up to EUR 40 million. The participation of private investors has also grown, now accounting for approximately 30 percent of the fund's capital, indicating increased confidence in its model.
Established in 2005 by the German Federal Ministry for Economic Affairs and Energy, KfW, and industry partners, HTGF aims to support German technology companies in their early stages. The goal is to enable them to achieve early growth and attract private follow-on financing.
Dr. Ingrid Hengster, Member of KfW's Executive Board, stated that young, innovative technology companies are crucial for Germany's competitiveness. She noted that the increased contribution from private investors confirms HTGF's success as a venture capital partner and supports KfW's objective to mobilize more private capital for high-tech startups.