A New €20 Million Fund for German Deeptech

Germany is globally recognized for the excellence of its scientific and technological research. However, a persistent challenge prevents many world-class innovations from transitioning from the laboratory to the market: a lack of capital in the early stages. To address this "commercialization gap," the Joachim Herz Foundation and the Berlin-based investment platform Marvelous have joined forces, launching the Marvelous Scito Fund, a €20 million initiative. This fund aims to act as a catalyst for deeptech technologies, providing the necessary financial support to transform scientific discoveries into industrial and commercial solutions.

The primary objective of the Marvelous Scito Fund is to support teams and projects that develop and commercialize technologies with clear potential for industrial scaling, societal benefit, and ecological impact. The fund will focus on strategic sectors such as Advanced Materials, Waste Valorisation, and Robotics. This move represents a significant step towards strengthening the German innovation ecosystem, providing a crucial bridge between academic research and practical application.

The German Market Context and the Capital Challenge

The launch of the Marvelous Scito Fund comes at a critical time for the investment landscape in Germany. German venture capital volume has experienced a significant decline, falling from $24.7 billion in 2021 to an anticipated $9.8 billion in 2025. This contraction is particularly felt in the deeptech segment, where the growth capital gap is estimated to increase to around €10 billion annually by 2030. Traditional venture capital funds tend to avoid the early stages of these projects, as technological, market-related, and operational uncertainties do not align with their risk-return profiles.

This reluctance creates a bottleneck for the most radical and long-term innovations, which often require longer development times and more substantial investments before generating revenue. The Marvelous Scito Fund is positioned precisely to fill this gap, offering "foundation capital" with a long-term investment horizon and a social mission. This approach aims to provide the stability and momentum needed during the most uncertain phases, allowing deeptech startups to mature and achieve commercialization.

The Fund's Strategy and Expected Impact

The Joachim Herz Foundation, founded in Hamburg in 2008, has a long history of promoting effective solutions for resource efficiency, climate protection, and securing skilled labor. With this investment, the Foundation aims to set an example within the German innovation ecosystem, demonstrating how philanthropic capital can play a more decisive role as an innovation driver. The Foundation actively supports the practical application of innovations stemming from cutting-edge research and the development of innovative business models by entrepreneurial talent.

Marvelous, the Berlin-based investment platform, focuses on the commercialization of "physical" deeptech innovations. The company combines scientific excellence with industrial execution capabilities, investing in early-stage technologies that support the transition to an emission- and waste-free economy. The Marvelous Scito Fund, managed by Marvelous Capital, operates through two complementary investment strategies. First, through its early-stage vehicle, Marvelous Ventures, the firm invests directly in deeptech startups at the pre-seed and seed stages. Second, the Marvelous Scito Fund manages capital on behalf of the Joachim Herz Foundation, investing both in selected deeptech venture funds and, in parallel, directly in startups. This dual approach ensures broad yet targeted exposure to Germany's deeptech ecosystem.

A Vision for the Innovation Ecosystem

Ulrich Müller, CFO of the Joachim Herz Foundation, emphasized the evolution of the Foundation's asset management strategy. "By expanding into venture capital, we are complementing our existing investment strategy with another asset class, aiming to generate sustainable market-level returns here as well. At the same time, we are increasingly investing part of the foundation’s capital while taking impact-oriented aspects into account." This statement highlights the Foundation's commitment not only to financial sustainability but also to a positive societal and environmental impact.

Chris Heyer, General Partner at Marvelous, described the fund as a consistent step in implementing their platform vision. "Marvelous Capital and Marvelous Catalyst work hand in hand: while we invest specifically in startups through our various funds, we also support them operationally through the Catalyst in achieving market readiness." This integrated approach, combining capital with operational support, is crucial for deeptech startups, which often require more than just funding to overcome the complex challenges of commercialization. For those evaluating on-premise deployment of emerging technologies, long-term support for these innovations is fundamental to ensuring the future availability of robust and scalable solutions.