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[Germany Launches €30 Billion Fund to Leverage Private Capital for Future Industries] ⑴ Germany officially launched the €30 billion "German Fund" initiative on Thursday, aiming to enhance the competitiveness of Europe's largest economy by leveraging private capital investment in energy transition, technology, and industrial modernization. ⑵ The fund, coordinated by the German Ministry of Finance and the Ministry of Economic Affairs, and implemented by the state-owned development bank KfW, will utilize various tools such as guarantees, loans, and equity investments to mitigate the risks of private investment. ⑶ The government describes the fund as "temporary seed financing" for the German economy after years of stagnation, aiming to leverage approximately €130 billion in additional private investment. ⑷ The fund focuses on three key areas: industrial and SMEs pursuing decarbonization and key raw material projects; energy utilities investing in renewable energy infrastructure; and startups and growth-stage companies in deep technology, biotechnology, and defense technology. ⑸ Specific measures include providing up to €8 billion in guarantees for industrial transition projects, establishing a €600 million guarantee framework for geothermal drilling, and expanding venture capital financing. (6) The Minister of Economy stated that the key lies in channeling private capital towards areas where innovation is born, supply chain resilience is strengthened, and Germany is prepared for the future. (7) KfW will also begin providing financing for defense exports and purchasing securitized products to strengthen loan support for SMEs. (8) The German Startup Association welcomed the plan, noting a significant funding gap for startups in the country, with data showing that in 2024, German per capita startup investment was far lower than that of the United States. (9) According to the plan, the fund will provide €1 billion in funding for startups by the end of 2030.