Venture Capital

The Joachim Herz Foundation is committed to fostering innovation and the transfer of knowledge from cutting-edge research. Therefore, we pursue two approaches: Through our charitable work, we support innovative, application-oriented research projects within our thematic clusters, and through our investment activities, we invest venture capital in promising business models. 

In this way, we pursue a common goal through two distinct paths: the transfer of innovations into concrete applications. This results in solutions that effectively enter the market and can thus realize their societal impact.

Since 2026, we have been investing a portion of our foundation’s capital in early-stage deep-tech startups through our own venture capital fund, guided by mission- and impact-oriented criteria. The investment strategy is implemented by the venture capital partner Marvelous. With the addition of venture capital, the Joachim Herz Foundation is strategically expanding its investment portfolio and investing in projects that, in addition to offering attractive expected returns, also consider impact-oriented aspects closely linked to innovation and the transfer of knowledge from cutting-edge research. The investment approach of the Marvelous Scito Fund combines direct investments in companies with investments in venture capital funds, thereby enabling diversified access to this asset class.

Despite excellent basic and applied research, startups in Germany often lack the financial resources to turn technological breakthroughs into marketable products and scalable business models. Capital-intensive deep-tech spin-offs, in particular, require significant investment in research, development, prototyping, and production infrastructure, face substantial financing barriers.

This gap has widened further in recent years. After peaking at $24.7 billion in 2021, the volume of German venture capital fell to $9.8 billion in 2023. A decline to $6.1 billion is expected by 2025. According to the study “Growth Capital for Deep-Tech Scaleups,” annual capital requirements are projected to rise to €20 billion by 2030—the growth gap could widen to €10 billion by then.

Traditional venture capital funds often avoid early growth phases because technological, market, and operational uncertainties do not fit their risk-return profile. This is where large foundations can provide important impetus within the innovation ecosystem. As a foundation, we also deliberately focus on venture capital funds to gain diversified access to this asset class and spread risks across multiple investments.