German venture funds urge domestic investment push worth €15 billion a year
The German Venture and Growth Forum says domestic investors supplied less than a third of the €5.1 billion invested in German startups in the first half of 2026.
German venture capital investors are calling on pension funds, insurers and foundations to increase their backing for technology businesses. The German Venture and Growth Forum (GVGF) estimates that larger institutional allocations could unlock approximately €15 billion in extra private investment each year for growth companies.
The forum represents more than 20 German venture capital and growth funds managing €28 billion in assets. Its appeal comes as the federal government holds its inaugural Invest in Germany Summit, focused on the country's position as a destination for business and investment.
Figures supplied by the GVGF put investment in German startups at €5.1 billion for the first half of 2026, with domestic sources accounting for less than a third. The group argues that dependence on overseas investors could cost Germany economic value and control of critical technologies.
Citing Invest Europe data, the forum said German institutional investors committed an annual average of €400 million to European venture and growth funds during the past decade, an allocation of approximately 0.1 per cent. It estimates that raising the allocation to 2 per cent could generate the additional annual funding.
The GVGF has also issued a German Venture & Growth Playbook covering venture capital risks and returns. It seeks structured discussions involving investment firms, institutional investors and policymakers to address obstacles to domestic funding.
