One billion for future technologies in the deep tech sector
The German government is providing additional funds to further expand Germany's technology base and venture capital financing. The plan is for these to serve primarily as growth capital. The Federal Ministry of Economics and Climate Protection and the Federal Ministry of Finance have developed the DeepTech & Climate Fund (DTCF) for this purpose. The new fund is to invest in the growth of companies with future technologies with immediate effect - up to one billion euros in the coming years.
"New business models are the prerequisite for economic growth and future prosperity. We want to establish the DeepTech & Climate fund as an anchor investor for new German global market leaders. To this end, we are putting 1 billion euros in our hands," said German Finance Minister Christian Lindner. However, capital alone does not determine success. According to Lindner, it is important to make the most of every euro invested and such a task belongs in qualified hands.
With its contribution to financing, the DTCF wants to support the technology champions of the future in developing into the new technology-based SMEs. In doing so, the fund focuses on the capital-intensive growth phase of companies in the deep-tech and climate-tech sectors. It focuses on companies with a validated business model.
The DTCF aims to invest in deep-tech areas such as Industry 4.0, robotics, artificial intelligence, quantum computing, 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. Preparatory activities have started in Q4 2022. Now, the first investment is said to be close to closing.
The plan is for the DTCF to act as a co-investor and partner to institutional investors and family-owned companies to ensure that technology companies have a growth perspective in Germany. In the long term, the fund is intended to ensure that Germany is further strengthened as an innovation and business location and becomes more attractive for companies with future technologies. The competitiveness and economic success of Germany and Europe are to be maintained and expanded in the future.