The High-Tech Startup Fund - Startup capital for new entrepreneurs

The success of technology-based startups and young innovative companies should not be allowed to falter due to lack of capital. When venture capital companies and business angels fall short, help may be enlisted from the Federal Government's High-Tech Startup Fund.
Under the motto "Technology is our future", the High-Tech Startup Fund invests risk capital in young, high-tech companies with good prospects. It makes the necessary startup capital available to technology-based company startups and provides the required mentoring and support for management while the company becomes established. Highly promising research results, an innovative technological base and good prospects for market success form the basis for the fund's involvement.

The fund will put up to EUR 500,000 into newly created technology companies centred around a research and development project. With the help of the seed finance the startups are expected to take the R&D project through to availability of a prototype or proof of concept, or through to market entry. To this end the fund enters into an active partnership while, in parallel, it makes available a subordinated convertible loan. The aim is to support the newly founded company for up to two years, until follow-on finance becomes available from private investors or until the company realises its own turnover. In subsequent financing rounds the fund can make available a further EUR 500,000 to selected equity finance companies.

The High-Tech Startup Fund has EUR 272 million of funding available. Since 2005 the fund has already pledged to take holdings in 177 young technology companies.
The fund is a successful public-private partnership: in addition to the Federal Ministry of Economics and Technology, investors include the KfW Group and industrial companies such as BASF, Deutsche Telekom, Siemens, Daimler, Robert Bosch and Karl Zeiss.
For further information: www.high-tech-gruenderfonds.de