The German Venture and Growth Forum (GVGF), representing over 20 funds with €28 billion in assets, is urging the government to increase domestic institutional capital. The initiative aims to secure the future of German technology companies and reduce reliance on foreign funding.
Data from the first half of 2026 shows that €5.1 billion was invested in German startups, with less than one-third originating from domestic sources. In contrast, US growth companies typically secure 70 percent of their funding from domestic investors.
The Forum suggests that Germany could mobilize an additional €15 billion annually for growth companies. This goal could be achieved by increasing the allocation rate of German institutional investors, such as pension funds and insurance companies, from the current 0.1 percent to 2 percent.
German institutional investors manage approximately €2.8 trillion in assets, largely concentrated in bonds and real estate. OECD figures indicate that German pension funds saw a real return of -0.6 percent over five years, while US funds achieved 1.2 percent.
GVGF has released a new playbook to encourage institutional investors to reconsider their exposure to venture capital. The organization is now pushing for a structured dialogue between policymakers, venture firms, and institutional investors to remove existing investment barriers.
