WIN Initiative: €2.64 Billion in Growth Capital Invested

• First annual report by KfW in cooperation with the German government: A strong start to the implementation of the WIN Initiative for Growth and Innovation Capital
• €2.64 billion in WIN commitments have been invested, with 61 per cent of the capital going to Germany – predominantly to companies in advanced stages of growth
• Germany’s position as a hub for start-ups and scale-ups has also been strengthened by targeted WIN measures

The WIN Initiative – Growth and Innovation Capital for Germany – has got off to a good start in its implementation. This is evident from the initiative’s first annual report, which KfW has produced in cooperation with the Federal Government. Since the initiative was launched by the Federal Ministry of Finance and the Federal Ministry for Economic Affairs and Energy, the Federal Chancellery, KfW, companies and associations in September 2024, €2.64 billion had been invested in the market by the end of last year.

This includes equity stakes in young companies – as direct investments, via venture capital funds or fund-of-funds. Further investments include, for example, debt financing for these companies. The aim is to reach investments of twelve billion euros by 2030. KfW coordinates the WIN initiative on behalf of the German government.

According to the available data, the breakdown of the committed investments shows a clear focus on the German and European markets (61 and 37 per cent). Around 67 per cent of the total sum went to scale-up companies in advanced growth phases. In contrast, ten per cent went to start-ups, i.e. younger companies, whilst 18 per cent was allocated as seed capital to the group of the youngest companies.

According to the available data, a large proportion of the funds flows into traditional venture capital funds (51 per cent). Direct investments in companies account for eight per cent, venture capital fund-of-funds for six per cent. Among other instruments, debt capital (venture debt) plays a dominant role (36 per cent in total). Thematically, investments in young innovative companies focus on artificial intelligence, climate technologies, and security and defence technologies, according to KfW Research’s Venture Capital Dashboard.

The WIN Initiative aims to improve the fiscal, legal and financial framework in Germany so that young and innovative companies can access private capital more easily. As part of the WIN Initiative, participants have committed to working with policymakers to structurally strengthen the start-up landscape in Germany and Europe through ten measures. Six of these measures have already been implemented. Two are being implemented according to plan, and two further ones are under review.

Building on the successes to date, the initiative is currently working intensively on a follow-up. The focus is on the goal set out in the coalition agreement to more than double the capital mobilised through the WIN initiative to over 25 billion euros.
 

Vice-Chancellor and Federal Minister of Finance Lars Klingbeil: “We are continuing to work on strengthening Germany’s competitiveness as a hub for business and innovation. We want to achieve technological leadership in key areas. The WIN Initiative is a key building block for innovation in Germany. It is very good news that 2.6 billion euros have already been invested in companies through this initiative. With the Location Promotion Act, the Federal Government has also significantly improved the framework conditions for young and innovative companies. This creates the jobs of tomorrow and strengthens our sovereignty.”

Federal Minister for Economic Affairs Katherina Reiche: “We need more private venture capital in Germany so that our start-ups and scale-ups can successfully implement their ideas. Through the WIN initiative, we have already mobilised around 2.6 billion euros for young, innovative companies. This sends a strong signal to the German start-up ecosystem. But we want to and can achieve even more. That is why we are now launching the next generation of programmes – for more investment in future technologies and a competitive Germany as a business location.”

Stefan Wintels, Chairman of the Board of KfW: “In view of the accelerated pace of technological and economic change, a well-capitalised venture capital ecosystem is now more than ever a prerequisite for sustainable innovation and international competitiveness. The collaboration between companies, associations and political stakeholders under the WIN initiative marks a milestone for the development of the venture capital ecosystem. The report shows that the WIN initiative strengthens the venture capital ecosystem in Germany effectively and sustainably. Thanks to joint efforts and targeted reforms, we are generating more growth and innovation, bringing fresh capital into the market and promoting future-proof technologies. The result: better financing conditions for start-ups, more opportunities for investors and a strong boost for Germany as a business location.”

More information on WIN: www.kfw.de/win

Deutsches Aktieninstitut is a partner of the initiative.

You can download the annual report here (in German):