With the new investment company BW-Capital GmbH, the state aims to strengthen start-ups and accelerate innovation.

In its meeting on December 9, 2025, the Cabinet of Ministers paved the way for the new state-owned investment company of Baden-Württemberg, BW-Capital GmbH. This will enable the establishment of a central instrument for promoting young, innovative companies. BW-Capital GmbH will provide targeted venture capital to technology-oriented startups , scale-ups, and innovative medium-sized enterprises. The L-Bank will manage the new company , while the state will be responsible for its operation.

Minister-President Winfried Kretschmann said: “Those who want to tap into new markets or transform established industries don't fail for lack of ideas, but often for lack of financing. With BW-Capital GmbH, we are sending a strong signal: Baden-Württemberg is investing in new ideas, new companies, and new opportunities. Founders need support when they turn innovations into jobs – that's precisely why we are creating this instrument.”

Dr. Nicole Hoffmeister-Kraut , Minister for Economic Affairs, Labour and Tourism, stated: “Start-ups are the future drivers of our economy. They bring forth new technologies, create high-quality jobs and keep our prosperity moving. This is important for Baden-Württemberg, as the state is now among the top performers nationwide in terms of start-ups.”

Finance Minister Dr. Danyal Bayaz said: “Baden-Württemberg has always been strong when we invest in new things. With targeted funding, we not only give the best ideas a chance, we also give them a home here in our state. BW-Capital enables us to use venture capital more flexibly and efficiently. This is extremely important for fostering a culture of innovation in the state and thus the medium-sized businesses of tomorrow.”

“In recent years, L-Bank has distinguished itself as a committed driving force for venture capital in Baden-Württemberg. We intend to continue to contribute this expertise in Baden-Württemberg venture capital as a catalyst for the new company,” said Edith Weymayr , CEO of L-Bank.

BW-Capital GmbH

BW-Capital GmbH will be established as a wholly owned subsidiary of the state. L-Bank will gradually reduce its own venture capital activities in the coming years and distribute the freed-up funds to the state. This is necessary because large-scale venture capital operations within a bank structure are reaching regulatory limits. An initial distribution of €50 million is planned for spring 2026, which will be used as seed capital for BW-Capital GmbH.

With increasing capital strength, the company will in future specifically promote strategic future fields – such as in the areas of Defence/Dual Use, Life Sciences, Artificial Intelligence, Microelectronics and Digitalization, as well as participate in the establishment of technologically valuable companies.