New study calls for more capital for scaleups
UnternehmerTUM and the Joachim Herz Foundation reveal that Germany's growth financing faces a €10 billion gap by 2030.
Germany is a world leader in research, but there is a dangerous funding gap when it comes to scaling technological innovations. This is shown in the study "Growth Capital for Deep Tech Scaleups" published today by UnternehmerTUM and the Joachim Herz Foundation. It analyzes the lack of capital in the growth phase of young companies—especially in the deep tech sector, which requires high investments in development, prototyping, and production infrastructure—and presents concrete measures to strengthen growth capital.
Despite high spending on research and development (3.13% of GDP in 2023), Germany often fails to successfully scale deep tech innovations. Traditional venture capital models are often insufficient for hardware- and technology-intensive business models, while private equity, infrastructure investors, and banks avoid early growth phases. As a result, many scaleups resort to foreign investors or relocate their activities abroad – with risks for value creation and technological sovereignty.
The data shows a widening billion-dollar gap: German VC volume fell from $24.7 billion (2021) to $9.8 billion (2023) and is expected to decline further to $6.1 billion by 2025. At the same time, financing rounds in Europe are significantly smaller than in the US. By 2030, annual capital requirements are expected to rise to €20 billion, of which around €14 billion will be in the growth segment – the growth gap could grow to €10 billion by then.
To close this gap, the study recommends setting up large growth funds, greater activation of institutional investors, hybrid financing models for capital-intensive deep tech projects, and the further development of exit and secondary markets to improve capital mobility.
The analysis is based on scientific contributions, market studies, and expert interviews. The aim is to reduce the gap between excellent research and successful commercialization and to secure the long-term innovative strength of Germany and Europe.