Germany’s HV Capital Raises €710 Million Fund Amid Tech Slump

German venture firm HV Capital closed a €710 million ($784 million) fund to back European technology startups during an industry slump in which new investment has shriveled.

The fund is the Berlin-based firm’s largest ever and its first under new European Union sustainable investing regulations that require investors to meet certain environmental, social and governance criteria, HV Capital said in a statement Thursday.

It comes amid a global technology sector downturn that has hit Europe particularly hard. Funding for European startupsfell 57% in the first quarter from a year earlier, while venture capital firms there are on track for ...