Venture Capital Investment Grant
The objective of the new “Venture Capital Investment Grant” assistance measure, launched on 15 May 2013 on behalf of the Federal Ministry for Economic Affairs and Energy, is to provide greater and more sustainable access to capital for young, innovative companies. In addition, it aims to recruit more business-minded people to take risks and invest in young, innovative companies. Existing business angels are also encouraged to invest higher and more frequent amounts of venture capital in young, innovative companies.
Usually, to achieve these objectives, the first step is for the young, innovative company to apply to BAFA to assess its eligibility for funding. Investors or business angels can then apply for a grant to the value of 20% of their investment, if they intend to acquire up to 25 % of the shares in the young, innovative company (UG (haftungsbeschränkt) and GmbH – limited liability companies or AG – stock corporation). Individual investments ranging from 10,000 to 250,000 Euros are eligible for a grant. Grants are also provided for investments for new companies pending start-up.
Each investor or business angel (whether natural persons or single-member limited companies) can obtain funding in relation to investments of up to a total of 250,000 per calendar year. Any young company classified as eligible for funding can receive subsidized risk capital of up to one million Euros per calendar year.
For the individual funding requirements applicable to companies and investors, see the details at http://www.bafa.de/bafa/de/wirtschaftsfoerderung/invest/ (German only).
The Federal Government has earmarked a total of 150 million Euros for this assistance measure for the period from 2013 to 2016.