Katherina Reiche today is proposing the German "Startup- und Scaleup-Strategie": 152 measures across 8 fields. Despite normally being very critical of our government's reform efforts, it feels like this is the first time the diagnosis and the instruments actually line up.
The direction is right. Solvency II's capital charge for long-term equity is dropping from 49% to 22%, moving through the legislative process now, mandatory from 2027. One less barrier for insurers to finally underwrite venture risk at scale. The WIN-Initiative just doubled its private capital target to €25bn. Wachstumsfonds II adds another generation of institutional capital via
KfW Capital, and ETCI 2.0 is opening up to private investors for the first time. Venture Capital will become part of the private pension planning, foundations will be allowed to invest in VC funds.
On the deployment side: Zukunftsfonds II, HTGF V, and a new €300M FOAK vehicle explicitly earmark DeepTech, BioTech and DefenceTech - exactly where we play, with
NEURA Robotics,
Quantum Systems,
Again,
Ore Energy and others. Security and defense startups get equal access to funding instruments for the first time, a real shift. A national IP strategy aims to speed up university spin-outs, which are currently dismally slow (props to
Laura Möller for engaging here).
The exit side is finally getting attention too, and it's the part I care about most. Some of it is already law: the Standortfördergesetz lets companies issue shares with a nominal value under one euro, and lets IPO prospectuses run fully in English without the German summary. IPO-Ramp-On goes further, reviewing whether newly listed companies deserve additional temporary relief on prospectus requirements - and whether listing-specific obligations that only kick in once you're public are actually justified by investor protection or are just legacy friction. On the fund side, a pilot for an institutional secondary market in VC/PE fund interests would finally give LPs a route to liquidity before year ten of a fund's life, and the EIF's TrackVC, built with
BlackRock, starts building the performance transparency European VC has always lacked as an asset class.
On tax, the roll-over relief threshold quadrupled to €2M, and the six-year minimum holding period for reinvested proceeds is under review to drop to four. None of this fixes the core problem alone — 92% of German startup exits are still trade sales, IPOs remain rare — but this is the first strategy to name that number explicitly and attack it from multiple angles at once, not just fund the input side.
Germany still invests roughly €90 per capita in venture capital, a fraction of the US and UK. That gap won't close overnight, and plenty of these measures still need to move from "wird geprüft" to law. But for the first time, the pieces — capital supply, institutional money, and exit infrastructure - are being addressed together, not in isolation. Worth watching closely, and worth building on.