Germany's WIN fund deploys first capital, commits €185M to venture funds

Germany's Deutschlandfonds has begun deploying its first capital, targeting raw materials and startups, according to the government and state development bank KfW. The fund has acquired stakes in newly founded technology companies and committed €185 million to venture capital funds that typically finance startups.

The initiative aims to channel money into strategically important areas of the German economy, spanning early-stage technology firms and resource security. A KfW subsidised loan is also available to advance geothermal projects.

The loan covers the risk that drilling to tap heat stored inside the earth comes up empty. Seven geothermal projects are currently under review.

By routing money through venture funds rather than backing startups directly, Germany is leaning on established investors to spread capital across its early-stage ecosystem — a signal that the state wants private markets, not government picks, to drive its technology bets.