Consulting, startup financing, and competitions: The public sector offers a wide range of funding and support options for startups. Our Service areaIn the new year, some offers will be revised and expanded.
As part of the funding program “INVEST – Venture Capital GrantThe Federal Ministry for Economic Affairs and Energy supports investors and startups through the "Investment in Young Companies" program. Private investors who acquire shares in young, innovative companies receive a 20 percent refund. The prerequisite: The investment must be held for at least three years. Currently, the maximum grant is €250,000. In the future, the funding amount will increase to up to €500,000. The program also reimburses the tax due on capital gains.
INVEST also supports startups in their search for investors. Upon request, the program will assess their eligibility for funding. Eligible companies can register in a directory maintained by the Business Angels Network Germany (BAND).
This is how INVEST funding works:
Improved conditions for start-up financing
With the ERP start-up loan – StartGeld The KfW Banking Group offers founders easy access to affordable financing. In 2014 alone, KfW granted approximately EUR 278 million in ERP start-up loans to 5,936 companies. To date, companies have been supported during their first three years of existence. In the future, startups will be able to benefit from the start-up loan until their fifth year of existence.
Also the High-tech Founders Fund (HTGF) is adjusting its terms and conditions: The maximum investment amount for seed financing will be increased from €500,000 to €600,000. The interest rate on the subordinated loan in the seed phase will decrease from ten to six percent. Interest will continue to be deferred for four years to preserve the company's liquidity.
Start-up competition relaunched
The "Start-up Competition - Digital Innovations," previously known as the "Start-up Competition - ICT Innovation," is expected to launch in March. Startups whose innovative products and services are based on ICT can secure seed capital of €31,000 for their business idea. Up to six founders awarded this main prize, along with a further 15 startups receiving €6,500 each, will also receive comprehensive coaching, including an analysis of their business idea. All participants who did not receive any prize money will also receive a helpful external assessment. The startup ideas of all competition participants will be evaluated based on their respective strengths, weaknesses, opportunities, and threats.
