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5 Questions With… Elisabeth Zehetner, State Secretary for Energy, Startups and Tourism
Just one day after the government retreat, where the creation of a location fund with a fund-of-funds for startups was decided, we spoke exclusively with State Secretary Elisabeth Zehetner.
She is the first to give us insights into the next steps, explains the key success factors for the fund of funds, and reveals which international best practices the implementation is based on.
Interview:
You announced that the EcoAustria study on the necessity of the umbrella fund will be published in September. Can you share any initial findings with our network?
We have already gained some exciting insights from the EcoAustria study and, within the framework of the government retreat, have also taken an important step with the decision on a location fund, under which the fund-of-funds for startups is attached. The study analyzed various fund-of-funds models in the US, Europe, and Asia, outlining their respective advantages and disadvantages. While much of the US relies on purely private capital, European countries heavily utilize public-private partnerships, such as Germany with KfW Capital, or previously Denmark, which has since switched to a purely private model. Germany is a particularly important benchmark for us: KfW Capital there is expected to reach a fund volume of approximately €13.6 billion by 2030. For us as policymakers, it is crucial that the Austrian fund-of-funds is managed independently and that the management team possesses international experience. This is a key factor for its success. The fund will be endowed with a public anchor investment and will pool additional private capital.
What success criteria must the Red-White-Red umbrella fund meet to function both as an economic impact instrument and as an attractive investment? Which international best practices are you using as a guide in implementing the structure?
The fund of funds must achieve two things: First, it should serve as an effective economic policy instrument to promote growth, innovation, and value creation in Austria. Second, it must be an attractive investment for investors. Only if both of these goals are met will it be successful in the long term. The EcoAustria study shows that international models are structured very differently – from strongly privately driven approaches in the USA to public-private partnerships like those in Germany or, previously, Denmark. For us, it is crucial to leverage the strengths of these examples and adapt them to the needs of the Austrian market. We will primarily focus on best practices that rely on independent management with international experience. This is a key factor in ensuring that the fund of funds builds trust, operates professionally, and can achieve real impact.
What steps will follow the publication of the study, and what is the planned timeline for moving from conception to concrete implementation?
The next step will be to attract institutional investors, such as insurance companies, pension funds, or other retirement funds, to the fund of funds. We are currently working very intensively on this. At the same time, we are examining the necessary framework conditions to make participation in the fund of funds as attractive as possible for all involved.
In your view, what political, technical, or financial hurdles need to be overcome in the coming months to successfully launch the umbrella fund?
At the political level, we are in agreement: The Red-White-Red umbrella fund is necessary to give startups, scale-ups, and spin-offs a real future here in Austria and to support them financially during their growth phase. In the coming months, the focus will be on creating the right framework and bringing the necessary partners on board.
They are key drivers of both the Red-White-Red umbrella fund and Austrian startup policy as a whole. What personally motivates you to advocate for startups and innovation, and how do you see the contribution of these measures to Austria's future as a "startup nation"?
The startup scene has been a part of my life for over twenty years. In my previous role as Head of Young Entrepreneurs and the Startup Service at the Austrian Federal Economic Chamber, I was deeply committed to the concerns of founders. This passion has never waned. Today, I have the opportunity to further contribute to making Austria a true startup nation .