German Venture and Growth Forum Calls for Mobilization of €15 Billion in Private Growth Capital
The German Venture and Growth Forum (GVGF), established by 24 venture capital and growth investors, aims to activate institutional capital for German growth companies. The initiative seeks to mobilize approximately €15 billion annually from existing private capital for venture and growth investments.
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The GVGF launched its initiative at the 'Future at the Table' event in Berlin, attended by key figures including the Federal Minister of Economics and the Chancellor's Personal Representative for Investments. Germany invests only 0.2% of its GDP in venture and growth capital, compared to 0.8% in the USA, resulting in a funding gap of approximately €30 billion.
The forum highlights the need for institutional investors to reassess venture capital as a viable asset class, citing annualized net returns of 14-18% and low correlation with traditional markets. The focus areas for potential growth include deep tech, artificial intelligence, and robotics, emphasizing the importance of sufficient capital availability to foster innovation and technological leadership.
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