To turn innovative ideas into forward-looking products, startups mainly need one thing: good financing throughout all stages. They often do not have access to traditional bank loans, as they can’t provide collateral. For this reason, the Federation has bespoke financing instruments for startups.

These span from the seed stage all the way to the growth stage and target everyone involved in financing a startup: individual entrepreneurs and startup teams, the startup itself and also investors such as business angels and VC and venture debt funds.

The Future Fund is a key booster for the Federal Government’s startup financing: the Venture Capital Fund for Future Technologies (Future Fund) launched in 2021 has a volume of €10 billion. It significantly adds to the Federal Government’s support for startups, both in terms of volume and through new elements. As is the case for all financing instruments, the tools forming the Future Fund use not only public-sector financing, but also leverage private capital through joint investments. The focus here is on startups during their growth stage. More.

This is how the Federal Government has improved startup financing

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Selected support programmes

On the road to international markets

The German Accelerator helps startups scale up their business by expanding it to selected foreign markets. It is the key federal programme dedicated to allowing German startups to grow and expand internationally. The centres of innovation located round the globe give them access not only to investors, but also to international markets. More.

For startup entrepreneurs with innovative business models

The High-Tech Gründerfonds offers capital and support during the seed stage.

For deep-tech startups

The Deep Tech & Climate Fonds (DTCF) was established in 2023 and focuses on startups’ long-term growth.

For capital from within the region

Equity and subordinated loans for startups and small and medium-sized companies with innovative digital, ecological and social business models are provided through RegioInnoGrowth.

For private venture capital funds

The European Investment Fund and KfW Capital cooperate with the Federal Government to invest in venture-capital funds. The KfW Growth Fund Germany has been especially successful in mobilising institutional investors, which is why private capital makes up the majority of its funding. The European Tech Champions Initiative (ETCI) launched by the EIF supports funds that invest in European high-tech companies in their advanced growth stages.

Institutes of higher education and research institutions offer the ideal nurturing environment for startups: spin-offs from science feed valuable expertise into businesses, securing Germany’s leading position in key forward-looking fields.

More than 25 years of successful support: EXIST

The most important and most successful federal funding instrument for this is the EXIST - Business Startups in Science Programme: for more than 25 years, EXIST has been mobilising innovative, growth-oriented and sustainable startups specialising in high tech.

Through its startup grants, EXIST supports prospective startup entrepreneurs by offering one-year scholarships to allow them to implement their business plan. The funding also covers expenditure on materials and coaching. With this financial security, beneficiaries can focus on their startup project.

EXIST Research Transfer supports particularly challenging technical startup projects at higher education and research institutes by first supporting product development at a scientific institution and then the seed stage of the company.

EXIST AI startup hubs: In 2021, the Ministry began to fund the creation of four AI model regions for the transfer of AI technologies into business (Berlin, Munich, Darmstadt, Hamburg). The AI startup hubs offer a wide range of support, including financing, consulting and advice, and networking between startups as they develop and scale up their business models.

• K.I.E.Z. in Berlin
• AI+Munich in München
• AI.Startup.Hub in Hamburg
• AI Startup Rising in Darmstadt

New flagships: the Startup Factories

Startup Factories is a competition under the Exist programme that seeks to establish new key stakeholders within Germany’s startup ecosystem. 15 associations bringing together higher-education institutes, research institutions and private partners have made it into the concept stage of the competition. During the project phase starting in 2025, the plan is to have five to ten excellency-driven projects with commercial ambitions in the competition for another five years, so that these can fulfil their ambition to establish regional startup ecosystems with an international reach that are firmly embedded in supra-regional and national value chains.

Another key aspect for facilitating spin-offs from science is intellectual property (IP) transfer. The Federation will do even more to support the process of IP-Transfer and to promote the use of standard solutions. Also, a deal database is to be set up to foster transparency, and an arbitration body to prevent disputes.

Tap into other online services

Information on additional advisory services for prospective entrepreneurs can be found online at www.foerderinfo.bund.de and www.foerderdatenbank.de.

Diversity is a key to success. Diversity within the startup ecosystem means that every person is able to harness their professional potential and strengths – regardless of their gender, origin, religion, disability, age, sexual orientation or identity.

We need diversity to make our venture capital market attractive for under-represented talent in the international competition. We also need diverse teams to be able to develop creative solutions for the challenges of our time. Ideas for new products that are a success on new markets and with diverse target groups, so that they can help move our country forward. For this reason, the Federal Government wants to diversify our startup landscape, e.g. by increasing the share of female founders and by making it easier for under-represented groups, such as founders with a migrant background, to establish a startup.

The Federal Government brings together startups with relevant private and public-sector stakeholders including companies, investors, financing and promotional institutions. This helps startups find strong partners to make them grow – and new use cases for their business models. In return, established companies get access to innovations tailored to their needs. A model that benefits both sides.

de:hub (Digital Hub Initiative)

The Ministry’s Digital Hub Initiative (de:hub) was launched in 2017 to bring together stakeholders of the startup ecosystem. The objective is to foster networking between startups and other stakeholders within the ecosystem. This includes established businesses (SMEs and larger corporations), investors, scientific and research institutions, associations, NGOs and the political sphere. The network fosters cooperation between these stakeholders and, by extension, innovations that will make Germany strong for the future. At present, the initiative consists of twelve regional hubs, each with a special focus on a particular industry and/or technology. The Ministry is further expanding this initiative, with new hubs in additional Länder and sectors joining this September. To date, the centres have brought together more than 6,000 startups with more than 2,000 partners. More.

Startup Germany Summit

The Ministry itself issues an invitation to the Startup Germany Summit: In September 2024, the Summit will bring together all stakeholders of the startup ecosystem in Germany and abroad to showcase Germany’s startup scene and discuss current challenges. New ideas from all over the world will be sought to support stakeholders in Germany and thus further strengthen the startup network and the overall ecosystem. More.