E653 | Elisabeth Schrey, Deep Tech & Climate Fonds (DTCF): DeepTech & Climate Fonds

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 Experience05:38 Crowding Out or Catalyzing? Steelmanning the Public Capital Debate07:21 When DTCF Steps Aside—and When It Competes for Deals09:54 Walking the Tightrope: Returns, Ecosystem Support, and Incentives14:36 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 Subsidies20:38 Defining “Readiness to Scale” in Uncertain Markets22:28 Avoiding the Subsidy Trap: Building Models That Work Without Support25:03 Climate & Hydrogen: Placing Bets Before the Hype27:36 Tech Waiting for the Market vs. Market Waiting for Tech29:06 Expanding the Portfolio: Semiconductors, Robotics, Cybersecurity31:27 Munich vs. Berlin: Why Munich Has Emerged as a Hardware Hub32:53 Corporates in Venture: Buffer, Booster, or Bottleneck?34:38 What Founders Need: Senior Hires & Serious Cashflow Models36:04 What Investors Get: Policy Links, Due Diligence, Deep Tech Edge38:22 Advice for Emerging VCs & Policymakers: Where the Next Gap Lies