Bonn-based public-private venture capital investment firm High-Tech Gründerfonds (HTGF) has unveiled its fourth fund with over €400 million in commitments to fund early-stage startups in Germany. This remains the biggest fund unveiled by the company until now.
Forty private investors participated in the HTGF IV fund, alongside the German Federal Ministry for Economic Affairs and Climate Action (BMWK), and KfW Capital.
Bolstering Germany’s position as a business hub, the new fund will provide early-stage financing to 40 young German startups that are no more than three years old. Key focus areas include digital tech, industrial tech, life sciences and chemicals with special attention to sustainability. According to the company, the second closing of the fund is set to take place before the end of the year.
Founded in 2005, the early-stage seed investor connects corporations, medium-sized firms and family-run companies with high potential high-tech startups in the country. As of now, it has provided financing for over 670 startups and sold more than 150 companies, including a billion-euro exit and four IPOs.
Alex von Frankenberg, managing director of HTGF said: “The high number of forward-looking medium-sized companies, leading corporations, and major family offices on board sends out a fantastic signal for entrepreneurs. After providing more than 670 seed investments through our previous three funds, we know the market well and are aware of just how much potential there is for startups in Germany.”
Talking about the earlier funds, Guido Schlitzer, managing director of HTGF added: “HTGF III currently comprises investments from 33 industrial corporations and medium-sized companies, with the number of private investors in Fund IV rising to 40. HTGF III had a volume of €319.5 million after second closing, while the volume of Fund IV is now increasing to over €400 million.”