Exclusive Spotlight: 5 Questions With…Jörg Goschin, CEO KfW Capital

As Austria prepares to launch the rot-weiß-rot Dachfonds, a fund-of-funds aimed at strengthening the local innovation and VC landscape, it's worth looking to successful models abroad, such as KfW Capital in Germany.

Founded as a subsidiary of the state-owned KfW Bankengruppe, KfW Capital was created to close the growth funding gap for tech-driven companies. Like Austria's umbrella fund concept, its mission is to expand access to venture capital and support a more robust startup ecosystem. In just five years, it has become one of Europe's largest VC fund investors, with €2.5 billion committed to 135 funds.

In this exclusive interview, CEO Jörg Goschin shares what it took to build KfW Capital and what Austria might take from Germany's experience.

Although our format is typically “5 Questions,” Mr. Goschin had so much timely insight to share that we made an exception.

interview

1. Mr. Goschin, how would you evaluate KfW Capital 's role in the growth of Germany's VC ecosystem since its founding?

KfW Capital was established in 2018 with the goal of improving funding for technology-driven startups and innovative companies in Germany. Initially, the aim was to increase KfW's annual VC investment to €200 million, but responsibilities quickly expanded. Today, we invest around €400 million per year into European VC funds, coordinate the federal “Zukunftsfonds,” and implement various programs ourselves, such as the Emerging Manager Facility.

Another milestone is the “Growth Fund,” a €1 billion fund-of-funds that we structured and succeeded in closing, with more than two-thirds of its capital coming from private institutional investors like insurance companies, pension funds, and family offices. This success is now being requested by several countries seeking similar models. With the growth fund over 70% deployed, we anticipate launching a follow-up in 2026.

Alongside investing, from the outset we've aimed to develop the VC ecosystem through content-driven initiatives. These include our well-established “KfW Capital VC Academy” in Berlin, the annual KfW Capital Awards (eg, for Best Female or Best Impact Investor), ESG training for fund managers, and – most recently – new training programs for institutional investors under the WIN initiative, in partnership with ESMT Berlin and Frankfurt School of Finance & Management. These programs begin this fall.

Through capital deployment and ecosystem building, KfW Capital has sustainably bolstered the German VC market and is one of Europe's largest fund investors.

2. What measurable successes can KfW Capital show so far?

Since its 2018 inception, KfW Capital has invested in 135 VC funds, indirectly supporting over 2,500 tech-focused startups. We've committed approximately €2.5 billion in equity capital. Given that we average about 10% per fund commitment, we've mobilized over €25 billion of capital for startups.

Notably, the “Germany Multiple” is striking: for every euro KfW Capital invests, four euros are directed into German startups. We also strategically back First-Time Funds, which account for about 18% of our portfolio, which helps nurture emerging fund managers.

3. What challenges did you face in setting up KfW Capital, both politically and operationally?

A significant operational challenge was assembling a qualified team capable of navigating the intricacies of a state-owned VC investor. We started with about 20 staff; Due to expanded responsibilities, we now have around 100 employees, roughly 50% female, reflecting our belief in the importance of diverse teams.

At the political level, a key question was securing ongoing political support amid changing governments. Since KfW Capital's launch, we've navigated three administrations, yet benefited from constant cross-party backing for VC as a pillar of German innovation policy.

4. What criteria guide KfW Capital's selection of VC and PE funds?

We follow a transparent, objective selection process. We invest only in independent management teams with proven track records and professional capabilities. We require that at least 50% of each fund's volume comes from private investors. We also expect a strong Germany focus; our funds typically deploy four times the amount invested in Germany compared to our input.

Due diligence includes an exhaustive ESG questionnaire; today, 100% of our VC funds have an ESG policy in place, which is critical for risk management.

5. How does KfW Capital collaborate effectively with other ecosystem stakeholders such as ministries, business angels, or private equity?

The foundation of our collaborative success lies in open, honest dialogue about goals and expectations. Although we operate under a political mandate, our investment decisions are made independently and based solely on market criteria. Trust, patience, and long-term vision are essential. VC funds often have ten-year horizons or longer, and we aim to invest consistently through economic cycles. That reliability has established us as a valued partner in the VC ecosystem.

6. What governance bodies does KfW Capital have?

We have a supervisory board offering a balanced mix of expertise: chaired by Stefan Wintels (CEO of KfW) and deputy Dr. Stefan Peiß (Risk Board), with two political appointees and three market representatives. We also convene an advisory board featuring a “who's who” from the German and European VC ecosystem, providing valuable strategic input.

7. What leadership requirements were set when KfW Capital was founded?

Our dual leadership model was deliberate. Alexander Thees was appointed by KfW for his deep understanding of its internal structures and his ability to bridge KfW with political circles. I was brought in from the VC market, equipped with extensive industry experience and networks. This blend of institutional insight and market know-how has been instrumental in KfW Capital's successful launch.

8. What advice would you offer Austria for its upcoming red-white-red roof fund?

It is essential to set up the fund with strong market alignment. Long-term success depends greatly on the team's skills and professionalism, both in management and advisory roles. With the right structure and mindset, Austria can replicate and build upon Germany's experience.