Loans are capital that are made available to the entrepreneurs that they must pay back with interest.
The L-Bank and KfW offer loans with better conditions than standard loans for start-ups, e.g. lower interest rates, years without needing to pay on the principal, or forgoing the need for security.
Additional information
The High-Tech Gründerfonds is supported by the Federal Ministry for Economic Affairs and Energy, the KfW bank, and 18 companies. At an early phase, it invests risk capital in start-ups in growth-oriented technology companies.
The fund invests € 600,000 and thereby purchase 15 % of the business shares. Capital is also available for further financing. The founders themselves also provide 10 % of the investment sum (€ 60,000). Half of this can also be funded by other investors.
New with the funds HTGF III
The High-Tech Gründerfonds can now invest up to 1 million Euro (as a convertible bond as was previously the case or as equity capital). The previously required financial contribution of the founders is desirable, but it is no longer absolutely required for those starting companies from universities.
Besides newly founded or companies without operational activities, the High-Tech Gründerfonds with the HTGF III fund can now also invest in companies that are a maximum of 3 years old and in which no more than 500,000 € have been invested by other investors up to that point.
The Research Promotion Department’s Start-Up Assistance supports entrepreneurs with the initial contact with the High-Tech Gründerfonds.
Additional information
Venture Capital is risk capital that is invested in companies with a high risk, e.g. development risk, but also with great potential. With the investment, the investor obtains business shares depending on the investment sum and business valuation.
The goal of the investor is an exit in which the capital is returned with high yields.
Business angels are private persons, often themselves entrepreneurs, who invest in newly founded companies and thereby obtain business shares (sometimes a loan is given without purchasing shares). Many business angels bring not only capital but also expertise from which the company can profit.
To get in contact with a business angel, networks such as the Business Angel Netzwerk Region Stuttgart (BARS) can be recommended. The Research Promotion Department’s Start-Up Assistance supports entrepreneurs in contacting BARS.
Additional information
Crowdfunding, in which many individual contribute capital to fund a start-up or business, has various forms:
- Classic: “Investment” in a project with a non-monetary consideration
- Crowdinvesting: Investment in a company in the form of a profit-participation loan (not a purchase of shares but participation in the company’s economic success).
- Crowdlending: Loans provided by the cloud as an alternative to bank loans
Numbers providers and platforms offer internet-based crowdfunding. Some of the platforms are specialized in certain industries or business phases. The Crowdfunding Information Portal offers an overview with more information on the respective platforms.