Scale-up Direct (Germany Fund)

“Scale-up Direct” is part of the Deutschlandfonds and enables KfW Capital portfolio GPs to make direct investments in high-growth tech start-ups from their own portfolios. Around one billion euros will be available from this programme by 2030.

Overview of details
- KfW Capital invests as a co-investor alongside VC fund managers in innovative start-ups and young technology companies that have their headquarters, a permanent establishment, or the focus of their business activities in Germany and are looking to raise growth capital.
- KfW Capital typically invests from the Series B funding round onwards, with investments ranging from €10 million to €50 million per start-up, on a pari passu basis with the co-investing portfolio GP.
- Co-investments are made through a special purpose vehicle (SPV) set up and managed by the co-investing portfolio general partner.
- When it comes to due diligence, the structure of the funding round is just as crucial as the commercial validation of the investment. Funding rounds are eligible for financing if they have an external lead investor who sets the valuation.
- Co-investments are always made in cooperation with KfW Capital's portfolio fund managers in selected start-ups. It is not possible for start-ups to contact KfW Capital directly.

Further information can be found here

Further information on the Deutschlandsfonds can be found at: Federal Ministry of Economic Affairs and Energy - Germany Fund and Federal Ministry of Finance - Germany Fund.