Find financing

BayStartUP is one of the most important ports of call for start-ups looking for capital. It supports start-ups with services ranging from business planning to building the business up to the first round of financing. The BayStartUP investors’ network includes some 300 active business angels, 100 institutional investors and public funding agencies, making it one of the largest of its kind in Germany and Europe. BayStartUP puts you in touch with specific suitable investors. while coaches give you and your team in-depth training for potential financing negotiations.

You will find a list of various business angel associations on the website of the German business angels network (Business Angels Netzwerk Deutschland, BAND).

Bundesverband Crowdfunding is the central interest group and network of commercial crowdfunding platforms in Germany.

The LfA Förderbank Bayern's start-up and growth loan is aimed, among others, at company founders and successors as well as small and medium-sized commercial enterprises and members of the liberal professions who have been active on the market for less than 5 years. In addition to new start-ups, company takeovers and active participations are also supported. The start-up and growth loan can be used to finance full-time or part-time start-up projects. The loan can be used to finance up to 100 percent of eligible investments and the purchase of goods. Compared to the market interest rate, the GuW offers significantly more favorable conditions for start-up projects and young companies. In some Bavarian regions, the so-called GuW promotion area, there are even additional reduced interest rates. Long loan terms of up to 20 years are possible. If there is insufficient collateral, the LfA can facilitate access to the loan by granting a pro rata exemption from liability. Alternatively, and for loans over EUR 2 million, a guarantee from the LfA or Bürgschaftsbank Bayern GmbH can be considered if the collateral is insufficient.

If you are planning to, or have set up, a commercial enterprise or freelance business (full- or part-time), you should enquire about the LfA general purpose loan (LfA Universalkredit). You can use it to fund the acquisition of stock or to pay for the general operating materials you need. The interest charged on general purpose loans is at the lower end of the standard market scale. You can apply for these loans as an alternative or in addition to the start-up loan, even if you plan to acquire a company. Lending amounts range between 25,000 euros and 10 million euros. In the absence of sufficient collateral, LfA may grant liability exemptions to facilitate your access to loans. Alternatively, if the collateral is not sufficient, you can apply for a guarantee from LfA or Bürgschaftsbank Bayern GmbH. The same applies for loans in excess of 2 million euros.

The innovation loan 4.0 (LfA - Innovationskredit 4.0) is designed for start-ups, small and medium-sized businesses and freelancers. The loans can be used for digitalisation and innovation projects. If companies satisfy a particular innovation criterion (rapid growth, high R&D/innovation costs, innovation subsidies, venture capital), they may even qualify for funding without any specific projects planned.  In addition to attractive interest rates, the innovation loan 4.0 also subsidises repayments to the tune of 1% of the borrowed amount. You can select borrowing and fixed interest terms of up to ten years. In the absence of sufficient collateral, LfA may grant liability exemptions to facilitate your access to loans. Alternatively, if the collateral is not sufficient, you can apply for a guarantee from LfA or Bürgschaftsbank Bayern GmbH. The same applies for loans in excess of 5 million euros.

With the ERP start-up loan – StartGeld offered by KfW (ERP-Gründerkredit - StartGeld), you can borrow as much as 100,000 euros to set up and operate your business. What makes it so special is that KfW assumes 80% of the default risk vis-à-vis your bank, which generally makes it easier for you to borrow. The ERP start-up loan – StartGeld is also suitable for people starting out in self-employment on a part-time basis for the time being.

With the ERP start-up capital loan offered by KfW (ERP-Kapital für Gründung), you can borrow as much as 500,000 euros for up to three years after setting up your business. You can partially fund as much as 50% of your entire investment needs, but must be able to provide at least 10% equity capital. No collateral is required. KfW does not demand the repayment of any principal for the first seven years.

The ERP SME loan is aimed at businesses with fewer than 250 employees and a maximum annual turnover of 50 million euros. Funding is provided for business start-ups, succession and participation, acquisitions such as plant and machinery, running costs, as well as materials and stocks of goods. You can receive a loan of up to 25 million euros, and as a business up to five years old you benefit from a particularly favourable interest rate.
 

BayBG invests in people wanting to set up or acquire a business in Bavaria. The business must not have been set up or acquired more than five years previously. Generally, investments by BayBG take the form of a typical silent holding to co-fund investment and operating equipment needs. The investments run for ten years.

In the field of VC, BayBG Bayerische Beteiligungsgesellschaft acts as lead or co-investor in all sectors, funding growth- and tech-oriented start-ups. Your company needs to have generated its first revenue and be based on a scalable business model.

Bayern Kapital is a wholly-owned subsidiary of LfA Förderbank Bayern and only invests venture capital in companies that operate a site in Bavaria. The Bavarian seed fund (Seedfonds Bayern) generally provides investment capital, together with independent private investors, for up to two years after you have set up your company with the aim of funding the growth of your business.

The Bayern Kapital innovation fund (BKI) works with an independent private investor to provide investment capital to young Bavarian tech companies to co-fund innovation projects (operating equipment and investments) at various stages of a business’s development. As the recipient of the capital, you are free to choose the private investor.

As a co-investment partner, the Bavarian growth fund (Wachstumsfonds Bayern) operated by Bayern Kapital cooperates with one or more independent private investors to provide young, tech-oriented small and medium-sized enterprises (SMEs) in Bavaria with investment capital to fund growth. The fund gives innovative Bavarian start-ups access to more funding to enable them to tackle the next stage of growth – by venturing into new sales markets, for example.

BayBG Bayerische Beteiligungsgesellschaft acts as lead or co-investor in all sectors, funding growth- and tech-oriented start-ups. Your company needs to have generated its first revenue and be based on a scalable business model.

Coparion is a venture capital fund for young German tech companies offering innovative products or services and above-average growth potential. Coparion only invests together with private investors who commit at least the same sums to the financing rounds, and on the same terms and conditions (‘pari passu’). Investors are free to make their own investment decisions.

The high-tech start-up fund (High-Tech Gründerfonds) is an investment fund for tech start-ups in the early stages of up to three years since setup. Investments focus on start-ups demonstrating growth potential in the fields of software, media, internet, hardware, energy and automation, life sciences and chemicals.

A directory of various VC companies in Germany can be found in the list of Bundesverband Deutscher Kapitalbeteiligungsgesellschaften (BVK) members.

‘Start?Zuschuss!’ is a digitalisation subsidy programme for tech-oriented start-ups with an innovative business model that is particularly fit for the future. The programme targets businesses set up no more than two years previously. The subsidy is 36,000 euros and the business must be registered in Bavaria.

Digitalbonus helps SMEs in Bavaria with digital transformation. The subsidy programme focuses on digital products, processes and services, and IT security. The amount of subsidy is dictated by the size of your business; to apply, go to digitalbonus.bayern (External link) where you will learn more about the procedure.

If you have a small business or trade based in Bavaria employing less than 50 people and have an innovative idea you want to realise, you can use the innovation voucher (Innovationsgutschein) to plan, develop or implement new or improved products, production processes or services. The eligible cost of the same must be no less than 4,000 euros and no more than 80,000 euros. Caution: since the subsidy amounts vary depending on the region in Bavaria, the business and the project in question, find out more about the programme first at Bayern Innovativ (External link) .

The EXIST start-up grant (EXIST Gründungsstipendium) is aimed at academics, graduates and students who want to realise technologically innovative projects or develop innovative knowledge-based services that build on scientific lessons learned. To successfully apply for EXIST, you must have not yet set up your company – the grant programme run by Germany’s Federal Ministry for Economic Affairs and Energy (Bundesministerium für Wirtschaft und Energie, BMWi) is only available during the pre-start-up phase. Applications must be filed in cooperation with a university.

EXIST research transfer phase I (EXIST Forschungstransfer Phase I) is aimed at research teams at universities and non-university research facilities. Grants are given to execute development projects for verifying technical feasibility, to develop prototypes, to compile business plans and, finally, to set up the company. The aim is to enable the further development of research findings that could form the potential basis for setting up a business.

EXIST research transfer phase II (EXIST Forschungstranfer Phase 2) sponsors the performance of further development work, measures to enable you to start doing business, and the creation of the preconditions required to obtain external business funding. Tech-oriented small caps with paid-in capital of at least 25,000 euros can apply for phase II if they were set up during EXIST sponsorship phase I, subject to the key knowledge owners from phase I contributing their knowledge and labour to the new company and being represented by at least one of them on the management board. The founders working for the company must own well over 50% of the shares in the business.

BayTOU aims to promote start-ups in tech areas promising a bright future, and to strengthen newly established businesses. The programme organised by the Free State of Bavaria supports projects focusing on the experimental development of new products, processes and technical services relating to the establishment of tech-oriented businesses. The compilation of a technical concept for setting up a company (pre-development) is also eligible for sponsorship. Applications must be filed with the state of Bavaria, as organiser of the project.

The FLÜGGE programme is aimed at students, university graduates and university staff at state-owned Bavarian colleges who want to realise an innovative business idea focusing on production or services offering clearly recognisable market volumes through their own company. Applicants can be either teams or individuals. Implementation of the innovative business idea must be presented in an informative business plan – with milestones – that indicates the chances of success. Start-up projects must be supported by a university lecturer (‘Mentor’) as well as by experts with practical experience (‘Coaches’) and a start-up network. Projects must be at the pre-start-up phase, with establishment of a company planned during or at the end of the sponsorship period.

The Bavarian regional sponsorship programme sponsors investments in tangible or intangible fixed assets. It is designed especially for companies in economically deprived regions, in rural areas and areas hit particularly hard by unemployment problems. You have to submit your grant application to the local government for the district where you are planning to execute your project. Prior to submitting your application, you should get in touch to set up a consultation.

Start-up International supports innovative technology/digital-oriented start-ups that want to tap into new markets. The program is aimed at start-ups that were founded no more than five, or in exceptional cases eight, years ago. Support is provided for the development of an internationalization strategy and its implementation in the target country. The funding amounts to up to 23.000 Euros per target market.The funding is eligible for maximum two new target markets.

If you are unemployed and want to set up a business to go full-time self-employed, you can apply for a start-up grant (Gründungszuschuss) from the Jobcentre (Agentur für Arbeit). It can be used to cover your cost of living and social security during the first months while you build your business. Since there is no legal entitlement to the start-up grant, you should seek out the Jobcentre as early as possible for a consultation regarding the terms and conditions (and potential subsidy amount available to you individually). Tell your adviser that you want to set up your own business. Among the other things you should know, be aware that you must have a residual entitlement to at least 150 days of unemployment benefit and that you will need to provide an expert opinion (issued by a chamber of commerce, chamber of trade or bank, for example) on your business model.

The tax allowance is intended to specifically stimulate the research activities of small and medium-sized enterprises. Unrestricted and restricted taxpayers are eligible, provided they are not exempt from taxation. The tax subsidy relates to research and development projects in the categories of basic research, industrial research and experimental development that were started after January 1, 2020. The subsidy takes the form of a tax allowance and amounts to 25% for personnel costs incurred in research and development within the scope of in-house research and development. Research contracts are subsidized at 15%. The assessment basis for eligible expenses is a maximum of EUR 4,000,000 for eligible expenses incurred after June 30, 2020 and before July 01, 2026. Activities that can be attributed to pure product development are not eligible. Please check if you can get support from your consultant.