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Where are they?
A fund of funds for Austria
Capital for innovation and growth
The fund of fund is an initiative of invest.austria with the aim of improving access to capital for Austrian companies. It pools funds from institutional investors such as pension funds, insurance companies, and banks and invests in venture capital and private equity funds. These funds support startups and SMEs, strengthen Austria's economic position, and counteract the relocation of innovative companies.
WHERE DO WE STAND?
WHERE ARE WE?
Idea
Umbrella fund Vision 2030
Government Agenda
Government Agenda
Government Agenda
start
Facts & Figures
- 1.2%
GDP in Austria shrank by 1.2% in 2024, WIFO
-2.5%
GDP per capita in Austria in 2024, compared to 2019
17%
Denmark's first fund of funds achieved returns
0.3%
expected further decline in economic output by 0.3% in 2025, WIFO
€85 billion
Euro is the economic added value that startups can bring to Austria, Mc Kinsey
206,000
Austrian startups can generate jobs, according to a study by Mc Kinsey
-17%
The total volume of startup investments in Austria fell by 17% in 2024, from 695 million euros to 578 million euros.
79%
79% of Austrian startups plan to expand and hire their teams in 2025. Austrian Startup Monitor 2024
€500 million
The target volume of the umbrella fund is €500 million. This comprises €400 million in external capital and €100 million from the federal government as an anchor investment.
Questions about the Fund of Funds
The umbrella fund is a professionally managed fund that pools capital from public and private investors and invests it in venture capital, private equity, and growth funds. These funds, in turn, finance innovative startups, scaleups, spin-offs, and SMEs. This creates a bridge between institutional capital and the Austrian innovation ecosystem. At the same time, the risk is spread more broadly by distributing it across multiple funds and companies. The goal is to mobilize more private capital for growth and innovation and to sustainably strengthen financing options for Austrian companies.
The Start-up & Scale-up Fund of Funds is a planned Austrian financing instrument with a focus on Austria, designed to strengthen the domestic capital market and innovation hub. It aims to mobilize public anchor capital alongside private and institutional capital, thereby facilitating targeted additional investments in the Austrian venture capital, private equity, and growth markets. This will make more capital available for financing and scaling Austrian companies, while simultaneously creating a stronger, long-term private investment ecosystem in Austria.
The goal of the Start-up & Scale-up Fund is to mobilize more private and institutional capital for innovative and growth-oriented companies. This will close financing gaps, strengthen Austrian funds, and create better conditions for growth and scaling. In the long term, the fund aims to help successful companies grow more strongly from Austria, creating added value and jobs in the country and sustainably strengthening the domestic capital market.
Several years ago, invest.austria, the Austrian investor advocacy group, initiated the concept of a fund of funds. Since then, the association has actively supported and advised on its implementation. The Start-up & Scale-up Fund of Funds has been politically approved and is currently being implemented. Following its inclusion in the 2025-2029 government program, the fund was also enshrined as a concrete measure in the Austrian Industrial Strategy 2035. A fund-of-funds structure with independent management adhering to international standards is planned. In June 2026, the federal government also earmarked a public anchor investment of up to €100 million for the fund of funds. The majority of the fund's capital is to be raised by private investors. The fund of funds is scheduled to become operational by the end of 2027. Since the fund of funds was officially included in the government program, invest.austria, in close coordination with the Federal Ministry for Economic Affairs and Energy, has been significantly involved in its implementation. As the central point of contact, invest.austria contributes its expertise, advises political decision-makers, provides support through knowledge transfer and networking, and also offers operational guidance throughout the process. With over 350 members, including leading angel investors, venture capital firms, and private equity companies, the association is an indispensable voice in the development of the concept.
The fund of funds does not invest directly in individual companies, but rather in selected venture capital, private equity, and growth funds. These funds, in turn, invest the capital in startups, scale-ups, and growth-oriented companies. Put simply: Investors invest in the fund of funds, the fund of funds invests in several professional funds, and these funds finance companies. This broad diversification allows capital to be mobilized more efficiently and the risk to be spread across many funds and companies.
The fund of funds is primarily aimed at institutional investors such as pension funds, insurance companies, and banks. However, larger private investors, such as foundations and family offices, are also being targeted. The federal government has also pledged an anchor investment of up to EUR 100 million.
The fund of funds is structured as a fund-of-funds model. Public anchor capital is pooled with private and institutional capital and managed professionally and independently. The capital is then distributed among several selected venture capital, private equity, and growth funds. These funds, in turn, invest directly in startups, scale-ups, and growth-oriented companies. This multi-tiered structure creates a broadly diversified portfolio, and private capital can be strategically mobilized for growth and innovation.
Key arguments in favor of a fund of funds in Austria are:
Funding gap in the growth phase: In Austria, there is a significant gap in the availability of venture capital (VC) and private equity (PE) financing, particularly for companies in the growth phase. While early-stage financing works relatively well in Austria, startups and SMEs often struggle to find the capital needed to scale their business models.
The exodus of innovative companies: Many of Austria's most promising and innovative startups are forced to seek funding abroad. This results in the loss of not only capital, but also innovation, jobs, and potential GDP growth for the country.
Mobilizing domestic capital: Austria has sufficient capital, but it is often not invested domestically. The umbrella fund aims to help mobilize this capital and direct it towards Austria's innovation hub.
Strengthening Austria as a location for innovation and business: The umbrella fund aims to strengthen Austria as a location for innovation and business overall. Improved financing for growth companies is intended to increase the country's competitiveness and contribute to the creation of new jobs and long-term economic growth.
Current challenges: In the current economic climate with high inflation, rising interest rates, and a slowing economy, startups and SMEs are finding it particularly difficult to raise capital. The umbrella fund aims to improve financing options in this environment.
In summary, the umbrella fund is an important measure to address the structural weaknesses in the Austrian financing ecosystem for startups and SMEs, to boost economic growth and to prevent innovative companies from migrating abroad.
The government creates the conditions for the umbrella fund and provides public anchor capital. This government commitment is crucial for building trust and mobilizing additional private and institutional capital. At the same time, clear legal and regulatory frameworks as well as a professional and independent fund structure are needed.
The umbrella fund is agreed upon in the coalition agreement of the current government, and the government has set itself the goal of creating the necessary legal and regulatory framework for it.
The exact “operational” role of the state in establishing the umbrella fund is currently being evaluated, with three key points at present:Provision of “infrastructure”: The state will install and operate the management vehicle of the umbrella fund, with a professional, internationally advertised management team responsible for operational management.
Seed funding: The government could provide initial funding to launch the fund of funds and act as a catalyst. This would help gain the confidence of other investors and provide the fund with a solid foundation.
Risk assumption through guarantees: One possibility would be for the state to provide guarantees for a portion of the investments. This would reduce the risk for private investors, which could be particularly attractive to risk-averse investors such as pension funds and foundations.
It is important to emphasize that the specific design and scope of the state's involvement have not yet been definitively determined and will depend on political decisions.
The "Austria component" is a central aspect of the planned umbrella fund and is intended to ensure that a significant portion of the added value is generated in Austria. This will be pursued in various ways:
Investments in Austrian funds: Part of the capital of the umbrella fund will be invested in venture capital and private equity funds, which in turn will invest in Austrian companies in the growth phase.
Focus on growth financing: The umbrella fund is specifically designed to close the financing gap during the growth phase, when Austrian companies often struggle to find capital to expand their business models. This should prevent promising companies from relocating abroad to obtain financing.
Strengthening the innovation ecosystem: By providing capital, the umbrella fund aims to contribute to strengthening the entire innovation ecosystem in Austria. This includes promoting research and development, creating jobs, and increasing the competitiveness of the country.
Incentives for domestic investors: The umbrella fund is also intended to help mobilize domestic investors such as pension funds, insurance companies and foundations, and encourage them to invest more in Austrian start-ups.
The structure of the fund of funds management is currently being finalized. The plan is to establish a professional and experienced team to achieve the best possible results for the location. The fund managers should have a proven track record and expertise in investing in target funds to identify promising investment opportunities and increase the value of the holdings. An independent fund management structure is essential to eliminate potential conflicts of interest and to act in the best interests of the investors.
Contact Person
Stefan Haubner
Board Member & BdV Politics
Markus Lang
Board Member
Valentin Krenkel
Deputy Managing Director
Johanna zu Stolberg
Press Officer for Fund of Funds
In the media
June 10, 2026
Budget: Vage Formulierungen zu Dachfonds-Ankerinvestment und Unicorn-Zahl als offizielle KPI
February 28, 2025
Government wants "umbrella fund for Austria" – financing for start-ups should be made easier
In the media
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May 13, 2025
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