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German Science Tech Startups get a boost from the EIF in January 2026.
€1.6 billion for Deep Tech Startups in Germany
Why money alone won’t save your Science Tech Start-up and what you need to do instead.
The news tickers are buzzing again. On 13 January 2026, the Federal Ministry of Economics and the European Investment Fund (EIF) proudly announced 1.6 billion euros in fresh funding for German start-ups via ‘EIF German Equity’. Added to this is the much-discussed ‘Germany Fund’, which is expected to mobilise up to €130 billion with state guarantees. On paper, it looks fantastic, because Germany is finally opening its purse strings. However, here at Startups From Science, where we cherish honesty, we must ask ourselves: Will this windfall actually reach you in your lab? Or are we just building golden bridges to nowhere?
I took a close look at the figures and the small print. Here is my analysis, and what it specifically means for you as founders from the scientific community.
The bare figures: big announcement about… guarantees?
Let’s be honest. The €1.6 billion from the EIF is important. They are the ‘oxygen tent’ for our venture capital funds. Since the EIF acts as an anchor investor, it will attract approximately five euros in private capital for every euro it invests. This means that around 8 billion euros will enter the market in the medium term. That’s very good news.
We must stop lying to ourselves. Yes, the sums sound big. But in comparison, we are still dwarfed. Current figures for 2024/25 show the scale of the problem:
– VC investments per capita in the USA: €510
– VC investments per capita in France: €108
– VC investments per capita in Germany: €90
The reality check between USA and Germany remains staggering. Europe has to finish the Single European Market and Germany has to lead much more.
The ‘full stack’ hope: HTGF meets DTCF
Another good news is the merger between High-Tech Gründerfonds (HTGF) and DeepTech & Climate Fonds (DTCF) in February 2026. Until now, HTGF provided a boost in the seed phase, after which startups fell into the infamous ‘Valley of Death’ as no one was responsible for Series B (growth). Now, a ‘one-stop shop’ is being created. This is a step in the right direction towards a venture-building state that not only starts up, but also scales up.
Early-stage-founders, what you need to do now
Stop waiting for the state. It often takes months or even years for the money from these new funds to reach you through fund-of-funds structures. Here are my three tips for you in 2026:
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Prioritise sales over grants and don’t get caught in the ‘grant surfing’ trap!
We see too many teams jumping from grant to grant. There is a high risk of ‘zombie breeding’. A grant application does not validate your business model. Only paying customers do that. Our mantra remains: Make your first sales in 12 weeks. Even in deep tech. Focus on selling the pilot project, not the finished product.
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Do your homework on financing
When talking to VCs, ask them: ‘Are you EIF-funded?’ Funds with an EIF mandate are more stable, because they can’t just jump ship when the stock market sneezes. However, be aware that they can be demanding when it comes to ESG reporting. Be prepared for that. Having a diverse team, or even migrant founders, is now a tough competitive advantage because the EIF wants to see that.
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Pay attention to your cap table
Dear universities and TTOs, do not take a 25% share in a spin-off for some IP, because the team will become uninvestable. International investors won’t touch something like that. We need standard deal terms, quickly and pragmatically. Innovation is worthless as long as it gathers dust on paper or in a patent. Innovation only happens when it hits the market.
Conclusion: the €1. 6 billion is a good signal
Nothing more. It won’t solve our bureaucracy or the slow IP transfer problem. Nor will it change the fact that we Germans are world champions at worrying. The money is there in the funds for the taking, but you have to pick it up yourself, with a validated business model, a great team and ideally actual sales. Let’s join forces to secure all the support you need.
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