www.foerderbar.de
Public Funding for Startups
Michael Schulte
Senior Consultant förderbar GmbH
www.foerderbar.de 3
 Public funding experts for IT, Internet and Industry 4.0
 Team of experienced Senior Consultants
 Office in Berlin, working with public funding programmes
anywhere in Germany
 Full service approach: Our clients have no time to deal with
public funding
förderbar – Public Funding Consultancy
www.foerderbar.de 4
Success
Success rate
100%
Winning around
15,000,000 € annually
for our clients
www.foerderbar.de 5
References
www.foerderbar.de 6
 All programmes support projects, not
companies
 Individual projects and projects for cooperation
 Programmes don‘t usually fund 100% of the
costs – company has to invest its own money in
the project
 Costs of the company that are not included in
the project
Project Funding
www.foerderbar.de 7
 Public funding is for those who have already
acquired some financing
 Leverage of VC
Example: Financing of a Company
750,000€
600,000 €
50,000 € 30,000 €
VC
R&D funding
Revenues
Founders' Money
www.foerderbar.de 8
Pre-Seed
 Exist
 Pro FIT-Frühphase (Berlin)
R&D
 IBB Pro FIT (Berlin)
 FuE Brandenburg, FuE Sachsen
 ZIM (Federal Ministry of Economics and Technology)
Staffing/Employment
 Innovationsassistent (in many Federal States available)
Overview of Some Relevant Programmes
www.foerderbar.de 9
 Pre-seed programme for new technology
companies without access to VC financing
Pro FIT Frühphase
• Preparation for an
R&D project
• 50% grant
• 50% loan
• Max. 200k €
• Angel investment
Early Stage 1 Early Stage 2 Growth
• Company
infrastructure
• 100% loan
• Max. 500k €
• VC financing
R&D project (“Anchor” project)
• Usually Pro FIT R&D project
• Anchor project is a condition for Frühphase!
www.foerderbar.de 10
R&D Programme
Pro FIT of Investitionsbank Berlin
R&D Programme Pro FIT
www.foerderbar.de 11
 SME with business premises in Berlin
 Development of new technologies for a new or an
existing product
 Project based on work done by permanent
employees of the company, plus additional costs
 Pro FIT finances three stages of the innovation
process
 Research
 Development
 Setup of production, market introduction
General Conditions
www.foerderbar.de 12
 Grants
 Subsidised loans
 Conditions
 Grants: Research, up to 400,000 EUR, up to 70 %
of the costs
 Loans: Development and market introduction, up
to 3m EUR, up to 80 %
 Lent term up to 8 years
Types of funding
www.foerderbar.de 13
 Amount of securities for Pro FIT loans
 Depends on the amount of the loan
 Significant shareholders provide securities
 No securities
 Financial investors
 Shareholders who hold less than 10% per
person or less than 25% of the shares
altogether
 Investments reduce the need for securities
Securities
www.foerderbar.de 14
Time Frame for Pro FIT Application
Prepare documents
Submit documents
Project outline phase
Meeting with technical
expert
Application phase
Decision grant
committee
First tranches
Apr MayOctSep Nov Dec Jan Feb Mar
First feedback
Final decision
Recommendation to
submit application
www.foerderbar.de 15
Programme
Innovationsassistent
of Investitionsbank Berlin
Innovation Assistant
www.foerderbar.de 16
 Hire a person who graduated from university
less than 2 years ago
 Permanent contract or min. 24 months or
permanent
 Project
 IBB gives a grant for the first-year salary
 Max. 20,000 EUR
 Max. 50%
 Do not sign contract before submitting the
application
Innovation Assistant
www.foerderbar.de 17
Vielen Dank für Ihre
Aufmerksamkeit!
Michael Schulte
Senior Consultant
förderbar GmbH
Die Fördermittelmanufaktur
Pascalstraße 10, 10587 Berlin
Telefon: +49 30 726 13 23 26
Telefax: +49 30 726 13 23 23
Mobil: +49 172 620 58 51
michael.schulte@foerderbar.de
www.foerderbar.de
www.foerderbar.de 18
Example: Pro FIT Project
Costs
Project-
related
expenses
Not project
related
expenses
Salaries of permanent
employees
Example costs
Capital the
company
needs until
break even
80 % of
project
20 % of
project
Pro FIT loan
Pro FIT grant
Seed investor
Financing
Revenues
Management
External costs
Market introduction

Public Funding for Startups

  • 1.
    www.foerderbar.de Public Funding forStartups Michael Schulte Senior Consultant förderbar GmbH
  • 2.
    www.foerderbar.de 3  Publicfunding experts for IT, Internet and Industry 4.0  Team of experienced Senior Consultants  Office in Berlin, working with public funding programmes anywhere in Germany  Full service approach: Our clients have no time to deal with public funding förderbar – Public Funding Consultancy
  • 3.
    www.foerderbar.de 4 Success Success rate 100% Winningaround 15,000,000 € annually for our clients
  • 4.
  • 5.
    www.foerderbar.de 6  Allprogrammes support projects, not companies  Individual projects and projects for cooperation  Programmes don‘t usually fund 100% of the costs – company has to invest its own money in the project  Costs of the company that are not included in the project Project Funding
  • 6.
    www.foerderbar.de 7  Publicfunding is for those who have already acquired some financing  Leverage of VC Example: Financing of a Company 750,000€ 600,000 € 50,000 € 30,000 € VC R&D funding Revenues Founders' Money
  • 7.
    www.foerderbar.de 8 Pre-Seed  Exist Pro FIT-Frühphase (Berlin) R&D  IBB Pro FIT (Berlin)  FuE Brandenburg, FuE Sachsen  ZIM (Federal Ministry of Economics and Technology) Staffing/Employment  Innovationsassistent (in many Federal States available) Overview of Some Relevant Programmes
  • 8.
    www.foerderbar.de 9  Pre-seedprogramme for new technology companies without access to VC financing Pro FIT Frühphase • Preparation for an R&D project • 50% grant • 50% loan • Max. 200k € • Angel investment Early Stage 1 Early Stage 2 Growth • Company infrastructure • 100% loan • Max. 500k € • VC financing R&D project (“Anchor” project) • Usually Pro FIT R&D project • Anchor project is a condition for Frühphase!
  • 9.
    www.foerderbar.de 10 R&D Programme ProFIT of Investitionsbank Berlin R&D Programme Pro FIT
  • 10.
    www.foerderbar.de 11  SMEwith business premises in Berlin  Development of new technologies for a new or an existing product  Project based on work done by permanent employees of the company, plus additional costs  Pro FIT finances three stages of the innovation process  Research  Development  Setup of production, market introduction General Conditions
  • 11.
    www.foerderbar.de 12  Grants Subsidised loans  Conditions  Grants: Research, up to 400,000 EUR, up to 70 % of the costs  Loans: Development and market introduction, up to 3m EUR, up to 80 %  Lent term up to 8 years Types of funding
  • 12.
    www.foerderbar.de 13  Amountof securities for Pro FIT loans  Depends on the amount of the loan  Significant shareholders provide securities  No securities  Financial investors  Shareholders who hold less than 10% per person or less than 25% of the shares altogether  Investments reduce the need for securities Securities
  • 13.
    www.foerderbar.de 14 Time Framefor Pro FIT Application Prepare documents Submit documents Project outline phase Meeting with technical expert Application phase Decision grant committee First tranches Apr MayOctSep Nov Dec Jan Feb Mar First feedback Final decision Recommendation to submit application
  • 14.
  • 15.
    www.foerderbar.de 16  Hirea person who graduated from university less than 2 years ago  Permanent contract or min. 24 months or permanent  Project  IBB gives a grant for the first-year salary  Max. 20,000 EUR  Max. 50%  Do not sign contract before submitting the application Innovation Assistant
  • 16.
    www.foerderbar.de 17 Vielen Dankfür Ihre Aufmerksamkeit! Michael Schulte Senior Consultant förderbar GmbH Die Fördermittelmanufaktur Pascalstraße 10, 10587 Berlin Telefon: +49 30 726 13 23 26 Telefax: +49 30 726 13 23 23 Mobil: +49 172 620 58 51 michael.schulte@foerderbar.de www.foerderbar.de
  • 17.
    www.foerderbar.de 18 Example: ProFIT Project Costs Project- related expenses Not project related expenses Salaries of permanent employees Example costs Capital the company needs until break even 80 % of project 20 % of project Pro FIT loan Pro FIT grant Seed investor Financing Revenues Management External costs Market introduction