A recent study shows a decline in total financing in Austria by 17% in 2024. The red-white-red umbrella fund is intended to help close this financing gap.
The fund of funds is designed to pool the capital of Austrian institutional investors such as pension funds, insurance companies, foundations, and banks and invest in venture capital and private equity funds. These, in turn, finance Austrian startups and SMEs. The fund of funds serves as a risk buffer, making it easier for risk-averse investors such as pension funds and foundations to invest in the Austrian economy.
This means that capital remains in the country instead of being invested predominantly in the international capital market – and thus outside Austria.
The fund facilitates access to fresh capital for young and small businesses and supports their growth. This prevents innovative companies from moving abroad for better financing opportunities, as has often been the case in the past.

A look at successful European models shows that this principle works: In Germany, the growth fund is primarily financed by private capital. In addition to the German federal government and KfW Capital as anchor investors, the investors include over 20 institutional investors, including insurance companies, pension funds, foundations, asset managers, and large family offices. This growth fund has already made significant commitments to venture and private equity funds with an investment focus in Germany.
Denmark's first growth fund, established in 1992, achieved an annual return of over 17%, enabling significantly larger follow-on funds. The French state investment bank BPI (Banque Publique d'Investissement) invests over €1 billion annually in funds.
The fund of funds aims to strengthen Austria as a location for innovation and business, increase the country's competitiveness and contribute to the creation of new jobs and economic growth in the long term.