Capvisory Insights
Venture capital exclusively for German startups
Top 34 state-backed venture capital investors you should know in Germany
Capvisory is an independent, founder-led advisory boutique specializing in fundraising, sell-side M&A, and buy-side M&A for fast-growing tech companies and their investors.
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These government-backed VCs complement private investors and provide startups based in Germany with valuable opportunities to secure competitive funding.
At Capvisory, we have integrated these so-called “matching facilities” into several fundraising projects, collaborating with funds such as HTGF, IBB, ILB, BayernCapital, and various MBGs.
The landscape of government-backed venture capital in Germany is complex and heavily influenced by federalism. Each state prioritizes the topic differently and maintains its own investment funds. This is where our updated Capvisory List 2025 comes in: As experts in fundraising and exit processes for tech startups, we provide a concise overview to help founders quickly identify the right contacts in their region.
State-backed venture capital can be broadly categorized into four groups:
- National (semi-)governmental VC funds investing directly (e.g., High-Tech Gründerfonds)
- Regional (semi-)governmental VC funds investing directly (e.g., IBB Ventures)
- State-level SME investment companies, known as ‘Mittelständische Beteiligungsgesellschaften’ (MBGs) (e.g., BayBG, MBG Baden-Württemberg)
- Fund-of-funds and institutional investors (e.g., KfW Capital)
This article focuses on regional and national (semi-)governmental VC funds that invest directly in startups, as well as state-level SME investment companies (MBGs). For founders, this list serves as a valuable resource to find the right investor for their next funding round.
Why does state-backed venture capital exist?
The German government provides equity capital through various funds and instruments to support innovative startups and SMEs. Early-stage startups, in particular, often struggle to secure venture capital. Publicly funded VCs help bridge this funding gap—especially in strategically important industries such as Deep Tech, ClimateTech, Life Sciences, and Defense. In contrast, these funds rarely invest in sectors like Consumer, Lifestyle, or Web 3.0.
How do state-backed VC investments work?
State-backed investment firms often act as co-investors, partnering with private VC funds or business angels. In most cases, the private investor matching is structured at 30/70 or 50/50, meaning startups may only need to raise 30% from private investors to receive 70% in government-backed capital. However, the application, selection, and due diligence process is generally the same as with traditional venture investors.
Many of these funds focus on Seed or Series A rounds, often with the potential for follow-on investments. An exception is the DTCF, which enters at a later stage, offering investments starting at €10 million.
Each government-backed investment firm has specific focus areas, often aligned with political priorities and economic trends. Currently, many funds prioritize Green Tech, Climate Tech, Deep Tech, Energy, and Artificial Intelligence (AI). In recent years, Defense Tech has also gained momentum.
Mezzanine capital & silent partnerships: Beyond traditional equity investments, some government-backed funds also offer hybrid financing structures, such as mezzanine capital or silent partnerships.
The 4 major nationwide state-backed VC funds in Germany
These state-backed VC investors operate on a nationwide level in Germany. Every startup seeking venture capital should be aware of these players.
1. High-Tech Gründerfonds (HTGF)
Stage: Pre-Seed, Seed
Ticket Size: Up to €1 million in the first round, up to €30 million in follow-ons
Industry Focus: Digital Tech, Industrial Tech, Life Sciences, Chemistry & adjacent fields
Geographic Focus: Germany (only German startups)
Sponsor: Federal Ministry for Economic Affairs and Climate Action, KfW Capital & private investors
2. Coparion (in its original form)
Stage: Seed, Series A, Series B
Ticket Size: Co-investments up to €15 million per startup (50% of the round must come from private investors)
Industry Focus: Sector-agnostic
Geographic Focus: Germany (only German startups)
Sponsor: KfW Capital, ERP special fund, private banks
3. DeepTech & Climate Fund (DTCF)
Stage: Series A and beyond
Ticket Size: Start at €10 million per investment (acts as an anchor investor alongside private investors)
Industry Focus: Deep Tech, Industrial Tech, Computing, Climate, Life Sciences & adjacent fields
Geographic Focus: Germany (only German startups)
Sponsor: Zukunftsfonds, ERP special fund, KfW Capital
4. SPRIND – German Agency for Breakthrough Innovations
Stage: “Early-stage innovation projects”
Ticket Size: Various funding instruments, often up to €1 million
Industry Focus: Sector-agnostic, focused on “breakthrough innovations”
Geographic Focus: Germany & EFTA countries
Sponsor: Federal Ministry of Education and Research (BMBF) & Federal Ministry for Economic Affairs and Climate Action (BMWK)
Insights from our experience with state-backed VCs
At Capvisory, we have supported multiple fundraising rounds involving state-backed investment funds and have had the opportunity to connect with many fund managers. Naturally, we are particularly active in Berlin with IBB Ventures, but we have also collaborated with others such as IFB Innovationsstarter GmbH in Hamburg, HTGF or NBank Capital.
Key takeaways from working with state-backed VCs:
Great opportunity for local startups: State-backed VCs often have a strong regional focus, specifically supporting startups from their respective areas. This provides local startups with funding opportunities they might not receive from nationwide or purely private VCs.
Co-investments with private investors: State-backed VCs rarely invest alone—they typically match private investments or act as co-investors. This can be highly beneficial if your startup has already secured commitments from private investors. Additionally, the ability to double the invested capital is a strong argument when convincing private investors to participate. Most regions have well-known and respected private investors, and their commitment signals credibility to the state-backed VC.
Slower processes compared to private VCs: Unlike fully private investors, state-backed funds are bound by bureaucratic approval processes. This can lead to longer due diligence and delayed investment decisions, making the funding process slower than with private VCs.
Capital availability even in downturns: Since these funds are publicly financed, their investment decisions are less dependent on market cycles compared to private VCs. Even in challenging years, when private investors become more cautious, state-backed VCs can continue investing within their pre-allocated budgets.
Tip for Founders: We recommend reaching out to state-backed VCs first. Their longer approval processes mean it’s smart to get started early. Additionally, a soft commitment from a state-backed fund can serve as a strong catalyst to convert private investors later in the process.
The 17 most important regional state-backed venture capital firms in Germany (2025)
Most state-backed regional investment firms—aside from MBGs—are funded by federal states or are subsidiaries of regional development banks. These development banks are state-owned or semi-public financial institutions, primarily financed through federal or state funds. They pursue economic policy objectives and are not profit-oriented.
Below is a list of the most important regional players, including their stage focus, ticket sizes, and industry specializations.
- IBB Ventures (Berlin)
Stage: Seed and Series A
Ticket Size: Up to €1 million initially, follow-up investments up to €5 million
Industry Focus: Software & IT, Healthcare, Industrial Technologies, Consumer & Digital, Impact
Geographical Focus: Berlin
Sponsor: Investitionsbank Berlin (IBB) - Bayern Kapital (Bavaria)
Stage: Seed and growth financing
Ticket Size: €250,000 to €25 million
Industry Focus: Biotechnology, Life Sciences, Medical Technology, Software & IT, Environmental Technology, Nanotechnology, Materials & New Materials
Geographical Focus: Bavaria
Sponsor: LfA Förderbank Bayern - NRW.BANK.Venture Fonds (North Rhine-Westphalia)
Stage: Seed to growth financing
Ticket Size: Up to €15 million (initial investment up to €5 million)
Industry Focus: Climate Tech, Information and Communication Technologies (ICT), Artificial Intelligence (AI), Enterprise Software, SaaS, IT Security, Life Sciences (Diagnostics, Pharmaceuticals, Medical Technology), Robotics, Photonics, New Materials, Digitalization of Industry, Economy, and Administration, Digital Business, as well as innovative business models
Geographical Focus: North Rhine-Westphalia
Sponsor: NRW.BANK - Brandenburg Kapital (Brandenburg)
Stage: Seed to Series B
Ticket Size: Up to €7.5 million
Industry Focus: Industry, Information and Communication Technology (ICT), Healthcare, Life Sciences
Geographical Focus: Brandenburg
Sponsor: Investitionsbank des Landes Brandenburg (ILB) - IFB Innovationsstarter GmbH (Hamburg)
Stage: Seed, Series A
Ticket Size: Up to €7 million
Industry Focus: Industry-agnostic
Geographical Focus: Hamburg
Sponsor: Investitions- und Förderbank Hamburg (IFB Hamburg) - Saarländische Wagnisfinanzierungsgesellschaft (SWG) (Saarland)
Stage: Seed, Series A
Ticket Size: Up to €2 million
Industry Focus: Industry-agnostic
Geographical Focus: Saarland
Sponsor: Saarländische Investitionskreditbank AG (SIKB) - Technologiegründerfonds Sachsen (TGFS) (Saxony)
Stage: Seed, Series A
Ticket Size: Up to €5 million
Industry Focus: ICT (Software/Industry 4.0/IoT/Big Data Analysis), Semiconductor and Microsystem Technology, Medical Technology/Health Sciences, Electronics, Sensors, New Materials, New Media, Cleantech
Geographical Focus: Saxony
Sponsor: Free State of Saxony, Sächsische Aufbaubank - IBG Beteiligungsgesellschaft Sachsen-Anhalt (Saxony-Anhalt)
Stage: Seed, Series A, Series B
Ticket Size: Up to €10 million per investment
Industry Focus: Energy, Mechanical and Plant Engineering, Resource Efficiency, Healthcare and Medicine, Mobility and Logistics, Chemistry and Bioeconomy, Nutrition and Agriculture
Geographical Focus: Saxony-Anhalt
Sponsor: State of Saxony-Anhalt
Management: bmp Ventures - GENIUS Venture Capital GmbH (Mecklenburg-Western Pomerania)
Stage: Pre-Seed, Seed, Series A
Ticket Size: Up to €1.5 million per investment
Industry Focus: Industry-agnostic, but focused on ICT, Life Sciences, Environmental and Energy Technology, Mechanical Engineering
Geographical Focus: Mecklenburg-Western Pomerania
Sponsor: Technologie- und Gewerbezentrum e.V. Schwerin/Wismar - Innovationsfonds Schleswig-Holstein (Schleswig-Holstein)
Stage: Not specified
Ticket Size: Up to €1 million per investment
Industry Focus: Industry-agnostic
Geographical Focus: Schleswig-Holstein
Sponsor: Investitionsbank Schleswig-Holstein (IB.SH), MBG Schleswig-Holstein mbH - NBank Capital (Lower Saxony)
Stage: Seed to mid-sized companies
Ticket Size: Not specified
Industry Focus: Industry-agnostic
Geographical Focus: Lower Saxony
Sponsor: Investitions- und Förderbank Niedersachsen (NBank) - Capnamic Specialty Fund Bremen (Bremen)
Stage: Seed, Series A
Ticket Size: Up to €2 million per investment
Industry Focus: Aerospace, Logistics, Nutrition, AI, or relevant key industries
Geographical Focus: Bremen
Sponsor: Capnamic, Sparkasse Bremen, Bremer Aufbau-Bank (BAB)
Management: Capnamic - Hessen Kapital III (Hesse)
Stage: Seed, Series A
Ticket Size: €0.1 to €1.5 million
Industry Focus: Industry-agnostic
Geographical Focus: Hesse
Sponsor: BMH Beteiligungs-Managementgesellschaft Hessen mbH - Technologiefonds Hessen (TFH) (Hesse)
Stage: Late Seed, Series A
Ticket Size: Up to €2 million
Industry Focus: IT, Fintech, Insurtech, Life Sciences, Deep Tech, IoT, Cleantech, with a specific focus on sustainable models
Geographical Focus: Hesse
Sponsor: BMH Beteiligungs-Managementgesellschaft Hessen mbH - bm|t Beteiligungsmanagement Thüringen GmbH (Thuringia)
Stage: Seed to mid-sized companies (Revenue <€75 million)
Ticket Size: Up to €10 million
Industry Focus: Industry-agnostic (including Life Sciences, IT, Optoelectronics)
Geographical Focus: Thuringia
Sponsor: Thüringer Aufbaubank - Innovationsfonds Rheinland-Pfalz III (Rhineland-Palatinate)
Stage: Seed to mid-sized companies (Revenue <€75 million)
Ticket Size: Up to €10 million
Industry Focus: Industry-agnostic (including Life Sciences, IT, Optoelectronics)
Geographical Focus: Rhineland-Palatinate
Sponsor: Investitions- und Strukturbank Rheinland-Pfalz (ISB) - LBBW Venture Capital (Baden-Württemberg)
Stage: Seed, Series A
Ticket Size: Up to €3 million
Industry Focus: Enterprise IT, IoT, Industry 4.0, AI/ML, FinTech, Big Data & Analytics in various industrial sectors, drug development, diagnostics, MedTech, and Healthcare IT
Geographical Focus: DACH region
Sponsor: Landesbank Baden-Württemberg (LBBW)
- IBB Ventures (Berlin)
List of the 13 regional investment companies (Mittelständische Beteiligungsgesellschaften (MBG)) from which we know they work with starups
The MBGs are typically private institutions with close ties to SMEs, often backed by chambers of commerce, banks, or industry associations. They are funded through returns from previous investments, public funds, and private investors.
Below are the MBGs that we know work with startups and entrepreneurs:
- MBG Baden-Württemberg (Baden-Württemberg)
Stage: Seed to Series A financing, SMEs
Ticket Size: €0.2 to €3.0 million
Industry Focus: Innovative and technology-oriented startups
Geographical Focus: Baden-Württemberg
Website: www.mbg.de/venture-capital/ - BayBG Bayerische Beteiligungsgesellschaft mbH (Bavaria)
Stage: Pre-Series A to Series B, SMEs
Ticket Size: Up to €5 million initial investment
Industry Focus: Industry-agnostic
Geographical Focus: Bavaria
Website: www.baybg-vc.de - MBG Berlin-Brandenburg (Berlin and Brandenburg)
Stage: Startup founders and SMEs
Ticket Size: Individual, depending on the chosen program
Industry Focus: Industry-agnostic
Geographical Focus: Berlin and Brandenburg
Website: www.mbg-bb.de - MBG Schleswig-Holstein (Schleswig-Holstein)
Stage: Seed to growth financing, SMEs
Ticket Size: Up to €1 million
Industry Focus: Industry-agnostic
Geographical Focus: Schleswig-Holstein
Website: www.mbg-sh.de - MBG Hamburg (Hamburg)
Stage: Startup foundation, Seed, Series A, SMEs
Ticket Size: Up to €2.5 million
Industry Focus: Industry-agnostic
Geographical Focus: Hamburg
Website: www.mbg-hh.de - MBG Hessen (Hesse)
Stage: Early stage, growth, SMEs
Ticket Size: Up to €10 million, depending on the specific fund
Industry Focus: Industry-agnostic; support for technology-oriented ventures
Geographical Focus: Hesse
Website: www.bmh-hessen.de - MBG Mecklenburg-Vorpommern (Mecklenburg-Western Pomerania)
Stage: R&D phase to market launch, SMEs
Ticket Size: Up to €1.5 million
Industry Focus: Industry-agnostic
Geographical Focus: Mecklenburg-Western Pomerania
Website: www.mbg-mv.de/programme/mv-innostartvc - MBG Niedersachsen (Lower Saxony)
Stage: Startup foundation, SMEs
Ticket Size: Up to €0.2 million
Industry Focus: Industry-agnostic
Geographical Focus: Lower Saxony
Website: www.mbg-hannover.de - MBG Rheinland-Pfalz (Rhineland-Palatinate)
Stage: Startup foundation, growth, succession, SMEs
Ticket Size: Up to €1.5 million
Industry Focus: Industry-agnostic
Geographical Focus: Rhineland-Palatinate
Website: www.bb-rlp.de - KBG Saarland (Saarland)
Stage: Growth, succession, investments
Ticket Size: Individual
Industry Focus: Industry-agnostic
Geographical Focus: Saarland
Website: www.sikb.de - MBG Sachsen (Saxony)
Stage: Financing for small and medium-sized businesses
Ticket Size: Individual
Industry Focus: Industry-agnostic
Geographical Focus: Saxony
Website: www.mbg-sachsen.de - MBG Sachsen-Anhalt (Saxony-Anhalt)
Stage: Equity investments for mid-sized companies
Ticket Size: Individual
Industry Focus: Industry-agnostic
Geographical Focus: Saxony-Anhalt
Website: www.mbg-sachsen-anhalt.de - MBG Thüringen (Thuringia)
Stage: Support through silent and open participations
Ticket Size: Individual
Industry Focus: Industry-agnostic
Geographical Focus: Thuringia
Website: www.mbg-thueringen.de
- MBG Baden-Württemberg (Baden-Württemberg)
Conclusion on state-backed venture capital investors
State-backed venture capital firms are sometimes overlooked by founders, yet they can be a valuable funding source for German startups. They not only provide consistent capital—even during economically uncertain times—but also act as co-investors, facilitating access to private venture capital.
For regional startups in particular, these investors offer significant opportunities by specifically supporting local businesses. Despite occasionally bureaucratic processes, they serve as a viable alternative or complement to purely private VCs. The list above provides founders with a clear overview of the most important state-backed investors, making it easier to connect with the right funding partners.
Capvisory is an independent, founder-led advisory boutique specializing in fundraising rounds, sell-side M&A, and buy-side M&A for fast-growing tech companies and their investors.
