Germany Launches €1 Billion Fund For Climate, Deeptech Startups

Germany has launched a new €1 billion fund for growth-stage companies focused on deeptech and climate tech, called the DeepTech & Climate Fonds (DTCF), Miriam Partington reported for Sifted.

Photo Insert: The fund will invest in sectors such as Industry 4.0, robotics, AI, quantum computing, and process automation, as well as companies in digital health, new energy, smart cities, new materials, and selected biotech areas.

The DTCF aims to support startups in the country and is part of a larger trend of European states paying attention to technological sovereignty and the strategic value of scaleups.

The fund will invest in sectors such as Industry 4.0, robotics, AI, quantum computing, and process automation, as well as companies in digital health, new energy, smart cities, new materials, and selected biotech areas.

The funds for the DTCF come from the federal government's €10 billion Future Fund and the European Recovery Program.

The focus on growth-stage companies is significant as there is a lack of European deeptech giants compared to the US and China, and European deeptech companies often have to turn to non-European investors for capital beyond Series B funding.

The launch of the DTCF follows France's recent announcement of a €500 million investment in deeptech startups.

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