Insurers Should Invest in Startups

The German Venture and Growth Forum has set itself the goal of increasing the financing of German startups by insurers and pension funds. In light of the ongoing shortage of venture capital in Germany, a new playbook for investors is to be developed to attract these institutions to invest in venture capital. The initiative is supported by leading representatives of the German insurance industry, who have recognized the necessity of diversifying their investment portfolios. The pressure on returns in traditional asset classes has prompted many insurers to explore alternative investment opportunities, including startups. A central element of the forum is the creation of a network that promotes exchange between startups and investors.

Through regular events and workshops, insurers will be informed about the opportunities and risks of investing in young companies. This could help strengthen confidence in this form of investment. The German startup scene has gained momentum in recent years; however, access to capital remains one of the biggest challenges. According to a study by the Federal Association of German Startups e.V., by 2025, only 15% of startups in Germany will have received sufficient venture capital to implement their growth plans.

The forum plans to develop concrete strategies to encourage insurers to invest in various stages of startup financing. This includes both early-stage financing and later funding rounds, which are crucial for the growth and scaling of companies. Another aspect of the forum is raising awareness of the importance of venture capital for the innovative strength of the German economy. Investments in startups could not only lead to the creation of new jobs but also contribute to strengthening competitiveness on an international level. The initiative is supported by various stakeholders from the finance and startup community, including government institutions that recognize the importance of venture capital for economic development.

A close collaboration between the forum and these institutions could provide additional resources and support for mobilizing capital. The German Venture and Growth Forum is expected to present its first results in the third quarter of 2026. The organizers anticipate that by the end of the year, at least 100 million euros in new capital can be mobilized for German startups. “We need to leverage the strengths of the German insurance industry to promote the innovative capacity of our startups,” said a spokesperson for the forum. “The time is ripe to explore new avenues of collaboration.”