Germany's KfW Chief Unveils Bold Plan to Boost Innovation and Startups

Stefan Wintels, CEO of Germany’s state-owned development bank KfW, has proposed a new investment and innovation agenda. He aims to strengthen the country’s competitiveness through bold reforms and increased funding for startups and growth businesses. Wintels called for a 'German Deal for Innovation' to mobilise capital and accelerate the transformation of ideas into successful companies. He stressed the urgency of expanding innovation infrastructure to support this goal.

The agenda includes advancing the Capital Markets Union and adjusting regulations. These changes would allow institutional investors to direct more funds into venture and growth capital. Wintels also highlighted the need for larger growth funds and fund-of-funds structures to address Europe’s annual financing gap with the U.S.

Launched in 2024, the WIN Initiative is a central part of this push. It aims to mobilise additional venture and innovation capital to drive economic progress. The proposed measures seek to close funding gaps and foster a stronger innovation ecosystem. Wintels insists that speed and scale are essential to seizing this opportunity for Germany’s future.