FRANKFURT (dpa-AFX) - The German government's new Growth Fund Germany to support start-ups has been filled with one billion euros in venture capital. The fund has "slightly exceeded" this target, according to a statement from the state-owned development bank KfW on Friday. It plans to present the fund on Wednesday together with representatives of the German government. It is one of the largest venture capital funds of funds in Europe. The "Handelsblatt" had previously reported on this.

The Ministry of Economics and the Ministry of Finance initiated the fund in order to promote Germany as a start-up location. Start-ups are finding it difficult to raise money due to the rise in interest rates and reluctant investors in the wake of the war in Ukraine. German start-ups are usually reliant on Anglo-Saxon investors, especially for large financing rounds in the later stages. In addition, promising growth companies often go to the USA to get closer to large investors.

Around one third of the money in the growth fund comes from the federal government, with the remaining two thirds coming from private investors, wrote the Handelsblatt. These include insurers Allianz and Munich Re as well as the world's largest asset manager Black Rock.

The growth fund is a fund of funds that invests money in other venture capital funds. These in turn support start-ups. Germany lags far behind countries such as the USA when it comes to venture capital, which investors use to invest in promising start-ups./als/DP/nas