Venture Capital

Berlin has a long history as a hub for startups. Over the past decades, the city has developed one of the strongest ecosystems for startups in Europe. A significant portion of venture capital financing activities in Germany takes place in Berlin. This dynamic environment creates a magnetic effect, where the success of startups attracts other ambitious founders and investors, solidifying Berlin's position as the national startup center. Early-stage innovative companies rely heavily on external funding to develop and bring their innovations to market. Traditional bank financing is often not feasible for these companies due to a lack of collateral and high risks. Venture capital becomes the most critical financing option for such highly innovative companies, as investors are willing to take on the risks in exchange for participating in the potential rewards.

Over the years, IBB Ventures has established itself as the leading public venture capital investor in Berlin, particularly in early-stage financing. The organization has significantly contributed to the growth of Berlin’s venture capital ecosystem. Startups supported by IBB Ventures and its private financing partners are innovative, scalable, and growth-oriented early-stage companies. They play a vital role in the regional innovation strategy by generating significant results in job creation and revenue growth.

IBB Ventures uses a systematic selection process to ensure the most promising companies are chosen for investment. Climate and environmental factors are incorporated into the selection process, excluding business models with significant negative environmental impacts from funding consideration.

IBB has been supporting innovative Berlin start-ups with venture capital through its sister company, IBB Beteiligungsgesellschaft mbH, since 1997. Under the IBB Ventures brand, more than 270 Berlin-based companies have been financed in consortia with partners. By leveraging the EUR 309 million invested directly by IBB Ventures as lead, co-lead or co-investor with the private funds of the financing partners, EUR 2.0 billion has been mobilized for Berlin start-ups. IBB Beteiligungsgesellschaft mbH is consolidated in the consolidated financial statements of IBB UV.

Established in June 2020, IBB Capital focuses on financing young Berlin-based startups and small and medium-sized enterprises (SMEs) with innovative business models. Through equity or equity-like instruments, it has played a pivotal role in supporting these businesses.

COVID-19 Support for Startups Program: a retrospective

Under its first program, “COVID-19 Support for Startups,” IBB Capital collaborated with 45 accredited co-investors to support 137 startups with approximately €162 million during the pandemic. IBB Capital has thus made a decisive contribution to ensuring that Berlin retains its position as Germany's leading startup hub. Berlin was able to use by far the most federal funds and invest in start-ups. Together with private investors, this enabled financing rounds totaling more than 500 million euros.

Key Results of the COVID-19 Support for Startups Program:

• 45 Accredited co-investors
• 137 Startups financed
• 252 Financing rounds
• Approximately 3,200 jobs secured
• €162 million in public funding commitments
• Over €500 million total financing with private investors

Further program: "BerlinInnoGrowth" (BIG program)

In May 2024, IBB Capital launched another equity program with the "BerlinInnoGrowth" program ("BIG program"). Together with private co-investors, IBB Capital finances Berlin start-ups and SMEs with an innovative (e.g. ecological, digital or social) and growth-oriented business model with equity via the BIG program.

BIG program, status: end of June 2025

• 20 growth financings for start-ups from the portfolio
• EUR 14.3 million public commitment volume
• ~ 470 jobs created or secured in Berlin
• ~ EUR 31 million total financing together with private investors