German VCs call for €15B annual funding boost to build the next generation of tech giants

Germany's venture capital community is pushing for a €15 billion annual increase in domestic investment to support the growth of the nation's tech giants. At the Invest in Germany Summit, the German Venture and Growth Forum (GVGF) argued that Germany must mobilize more local institutional capital to finance the next generation of global technology companies. Presently, German startups received €5.1 billion in funding during the first half of 2026, yet only a mere third of this capital originated from domestic investors.

The Forum estimates that bolstering institutional allocations to venture capital could yield approximately €15 billion in additional private capital annually for growth companies. Germany's reliance on foreign funding, particularly from the US, poses risks to economic value and control over critical technologies. The US has a 70% self-sufficiency rate when investing in its own growth companies, while Germany currently stands at just 30%.

Christian Nagel, Co-founder and Partner at Earlybird Venture Capital, highlighted Germany's untapped potential to finance its own technology companies. According to the Forum, matching US growth investment levels relative to the size of the economy would require €30 billion in additional annual investment across Europe, including €15 billion from Germany.

German pension funds, insurance companies, and foundations manage around €2.8 trillion in assets, but their portfolios are heavily concentrated in traditional investments. The Forum suggests that increasing the allocation of German institutional investors to European venture and growth funds from 0.1% to 2% could mobilize approximately €15 billion in additional annual investment.

Dr Tanja Emmerling, Partner at High-Tech Gründerfonds, sees the planned statutory capital pension as a potential catalyst for increasing capital for venture capital in Germany.