Germany's HTGF targets €500M fifth fund, doubling down on climate and deep tech

What's the deal? Germany's state-backed seed investor High-Tech Gründerfonds (HTGF) is targeting around €500 million for its fifth fund, Impact Loop reports. HTGF V plans around 150 new investments in technology startups, with a first closing scheduled for mid-2027.

Where's the money going? The fund will invest heavily in climate and deep tech, including energy software. "We're looking much more into the grid, the data and how to balance it," said Dr Tanja Emmerling, a partner at HTGF (translated from German).

What's the focus? HTGF V counts artificial intelligence, quantum computing, clean energy, new materials, digital infrastructure, and biotechnology among its target fields. As a first-check investor, it typically enters first in young companies, initially putting in €1 million to €3 million.

Selected portfolio companies can later draw follow-on capital of up to €60 million through the HTGF Opportunity Fund and the DeepTech & Climate Fund (DTCF).

How it works: HTGF continues its model of combining public and private capital. The German federal government contributes through the ERP Special Fund, while companies from industry and the SME sector invest alongside it. In the fourth fund, 45 such firms — including BoschDealroom has a profile for this one. Try Dealroom →, SAP, DHL, Evonik, Leaps by Bayer, Boehringer IngelheimDealroom has a profile for this one. Try Dealroom →, and JungheinrichDealroom has a profile for this one. Try Dealroom → — provide around a third of the volume.

Why now? The fund is part of the German government's startup and scaleup strategy, which aims to back young technology firms beyond the founding phase and improve their path to later international growth.

By the numbers: The €500 million target would roughly match HTGF IV, which closed at €493.8 million in 2023 — itself more than 50% above the €319.5 million third fund. Since 2005, HTGF has financed over 800 startups, realised more than 200 exits, and produced five unicorns.

The signal: Germany is consolidating early- and growth-stage technology financing, with the DTCF set to come under HTGF's umbrella. The fundraising will test whether public backing can again pull in substantial private money from industry and SMEs for capital-intensive sectors.

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