Germany's KfW CEO Proposes Bold 'Innovation Deal' to Close US Funding Gap

Stefan Wintels, CEO of KfW, has called for a new investment and innovation agenda to strengthen Germany’s competitiveness. He warns that Europe must address its annual financing gap with the US to support growth and innovation. Wintels proposes a 'German Deal for Innovation' to mobilise capital and improve innovation ecosystems. The plan aims to act quickly and at scale, ensuring ideas can develop into successful businesses.

He also supports larger growth funds and fund-of-funds structures to close the funding gap. The agenda includes advancing the Capital Markets Union and adjusting regulations so institutional investors can direct more money into venture and growth capital.

The WIN Initiative, launched in 2024, is a central part of this push. It seeks to attract additional venture and innovation capital to support Germany’s economic ambitions. The proposals aim to mobilise more capital for innovation and strengthen Europe’s position. Regulatory changes and expanded funding structures could help institutional investors play a bigger role. The WIN Initiative will support these efforts with additional capital for venture projects.