A billion-euro bet on Europe’s most uncertain frontiers: climate, deep tech, and industrial transformation. Can government-backed funds catalyze global champions—or do they risk crowding out private capital?
Dr. Elisabeth Schrey leads the Deep Tech & Climate Fonds (DTCF), a €1B investment vehicle co-financed by Germany’s Future Fund and ERP Special Fund. From Munich to Berlin to Brussels, she’s navigating the hardest question in European venture: how to deploy government capital without distorting markets.
Together, we explore how DTCF is shaping Europe’s growth-stage landscape, what it takes to invest in policy-fragile verticals like hydrogen and climate tech, and why Europe’s future industrial champions may depend on funds like this.
Here’s what’s covered:
01:47 Why Elisabeth Took the Helm at DTCF (and What Gap It Fills)
03:32 The Co-Investment Model: Benefits, Limits, and Founder Experience
05:38 Crowding Out or Catalyzing? Steelmanning the Public Capital Debate
07:21 When DTCF Steps Aside—and When It Competes for Deals
09:54 Walking the Tightrope: Returns, Ecosystem Support, and Incentives
14:36 Thinking Ahead: Could DTCF’s Next Fund Be Purely Financial?
15:42 The Scale Up Europe Fund vs. DTCF: Complement or Competition?
17:18 Investing in Policy-Fragile Sectors Without Betting on Subsidies
20:38 Defining “Readiness to Scale” in Uncertain Markets
22:28 Avoiding the Subsidy Trap: Building Models That Work Without Support
25:03 Climate & Hydrogen: Placing Bets Before the Hype
27:36 Tech Waiting for the Market vs. Market Waiting for Tech
29:06 Expanding the Portfolio: Semiconductors, Robotics, Cybersecurity
31:27 Munich vs. Berlin: Why Munich Has Emerged as a Hardware Hub
32:53 Corporates in Venture: Buffer, Booster, or Bottleneck?
34:38 What Founders Need: Senior Hires & Serious Cashflow Models
36:04 What Investors Get: Policy Links, Due Diligence, Deep Tech Edge
38:22 Advice for Emerging VCs & Policymakers: Where the Next Gap Lies
