Germany is launching a new investment fund through which the state will be able to directly acquire stakes in defence startups and security sector companies. This was announced by Economy Minister Katharina Reiche.
According to the minister, active investment in the defence sector could add 0.5–1% to the country’s economic growth. “If properly invested in, the defense sector will provide an additional economic boost,” Reiche emphasized.
The new tool is part of the Deutschlandfonds (Germany Fund), launched in late 2025. The fund, with a total capacity of up to €130 billion, aims to mobilize private capital for key industries, including defence, DeepTech, security, and critical raw materials. The state, through KfW and other structures, will act as an anchor investor.
Details on the fund’s operating mechanism and the first projects are expected soon.