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