This month, we’re especially excited to bring you an exclusive interview with Wolfgang Hattmannsdorfer, Austria’s newly appointed Federal Minister of Labour and Economy.

Since March 3, 2025, Wolfgang Hattmannsdorfer has been Austria’s new Minister of Economic Affairs – taking office at a critical time for the country’s business landscape. With Austria facing global economic challenges, a widening growth capital gap, and the departure of innovative companies, investors are asking how the new government plans to strengthen Austria’s position as a business and innovation hub. One particularly noteworthy initiative is the introduction of the Dachfonds (Funds-of-fund), designed to pool institutional capital and channel it into venture capital and private equity funds that support Austrian startups and SMEs.

The Dachfonds is being developed in close cooperation between the Ministry of Economic Affairs and invest.austria. Having initiated the concept of the Dachfond years ago, invest.austria is now responsible for supporting the operational implementation and providing expert guidance to policymakers throughout the process.
What is Minister Hattmannsdorfer’s stance on the Dachfonds? And what additional steps is he planning to enhance Austria’s competitiveness?

Interview

Austria has recently lost ground in international comparisons when it comes to investments in start-ups and SMEs. What specific measures are you planning to make the location more attractive for investors?

We want to get Austria’s economy back into the fast lane. To achieve that, we need a location that attracts investment rather than deterring it. The government program contains several clear commitments to making the capital market more attractive, such as improving employee participation schemes and strengthening the second and third pillars of pension savings. We also want to promote financial and economic literacy and make ETF savings plans more appealing to young people.

The planned “rot-weiss-rot Dachfonds” (Austrian fund-of-funds) is intended to pool institutional capital and invest it specifically in Austrian Startups and SMEs. How do you view this model, and what contribution can the government make to ensure its success?

Austria needs more growth capital if we want to retain value creation and talent in the country. While we are well-positioned in early-stage financing, we lack sufficient growth and venture capital in the scaling phase. This is a weakness in our national innovation system. As a federal government, it is therefore our declared goal to establish a “rot-weiss-rot Dachfonds” to enable companies to grow in Austria and to prevent them from relocating or setting up operations abroad. Preparatory work for a “rot-weiss-rot Dachfonds” is already underway.

What challenges do you see in introducing the “Dachfonds” and what solutions do you propose to overcome them and ensure successful implementation?

In my view, overcoming traditional financing structures is one of the biggest challenges. Moreover, a fund depends heavily on its capital allocation. The task of policymakers — and mine as Minister of Economic Affairs — will be to build trust and motivate institutional investors to commit capital. A compelling concept that gives us strong arguments will be essential to achieving this.

Countries like Germany, France and Denmark have launched successful “Dachfonds” initiatives that mobilise private capital. What can Austria learn from these models and what specific steps do you plan to take to keep up with these markets?

There’s no need to reinvent the wheel every day. My approach is to learn from the best. That’s why we are currently analysing international best practices in detail. Based on our findings, we will present a tailored concept for a “Dachfonds.”

Where do you see Austria’s innovation and investment landscape in five to ten years, and what role will your economic policy play in shaping it?

In five to ten years, Austria should remain an attractive location for innovation and investment, even by international standards. To that end, we will have created an effective and appealing tool in the form of the  “rot-weiss-rot Dachfonds.” More broadly speaking, we need a comeback of performance and competitiveness. This means focusing on our strengths — our diligence, our inventiveness, and our international outlook.