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Funding programs for startups
Funding for tech startups: An overview of programs by the Federal Ministry for Economic Affairs and Climate Action in Germany
Capvisory is an independent advisory boutique specializing in fundraising, sell-side M&A, and buy-side M&A for fast-growing tech companies and their investors.
Gründer und Partner
Gründer und Partner
In the following, we provide an overview of the most relevant nationwide funding instruments of the Federal Ministry for Economic Affairs and Climate Action (BMWK) for startup creation, succession, and growth financing, including the various modules of the Zukunftsfonds (“Participation Fund for Technologies of the Future”). Our focus is explicitly on tech startups and venture capital investors, rather than the broader spectrum of traditional business support, such as the Micro-Mezzanine Fund for small business owners or the ERP Gründerkredit (ERP Startup Loan).
You can find an overview of state-backed regional venture capital initiatives, particularly those initiated by regional development banks and SME investment companies, here: List of 40+ state-funded venture capital investors in Germany.
We have categorized the BMWK instruments according to the target groups of the programs:
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- For Founders: Funding programs for the first steps and company formation
- For Startups: Capital for young companies looking to scale
- For Business Angels: Incentives for private investors to fund startups
- For Venture Capital Funds: Opportunities for VC fund financing
There are three types of programs: 1) grant and advisory programs, 2) equity financing programs, and 3) debt financing programs. A comprehensive overview of all available funding opportunities from public institutions in Germany can be found in the Funding Database of the federal and state governments at www.foerderdatenbank.de.
Finding the funding landscape confusing?
Germany offers a wide range of funding opportunities, but navigating them can be overwhelming. Feel free to reach out! As M&A and fundraising advisors for tech startups from the Seed stage onward, we help you identify the right financing options for your specific case, and assess whether government funding programs could be a valuable addition.
1. Funding Programs for Founders
Tech founders who are still at the very beginning of their entrepreneurial journey—such as those who have just developed an idea and are now considering starting a business—can access the following funding programs initiated by the Federal Ministry for Economic Affairs and Climate Action (BMWK):
a) EXIST Startup Grant
The EXIST Startup Grant supports academic founders in the (pre-)startup phase with financial assistance for up to 12 months. The goal is to transfer innovative university and research projects into market-ready startups.
- Target group: Academic founders
- Amount: Up to €3,000 per month + material costs up to €30,000
- Type: Grant (no repayment, no interest)
- Key feature: Focus on science-based startups, the university provides a mentor, and the startup must not yet be founded
- Example: A PhD student develops an eco-friendly water purification technology.
b) EXIST-Women
The EXIST-Women program supports aspiring female founders in developing their entrepreneurial skills and refining their business ideas. The goal is to encourage more women to enter the startup ecosystem and facilitate their path to self-employment through targeted qualification.
- Target group: Women interested in entrepreneurship, with or without a concrete business idea
- Amount: Material costs up to €2,000; optionally, a 3-month stipend for the founders
- Type: Grant & advisory support (no repayment, no interest)
- Key feature: No university degree required, support from universities and research institutions, access to networks, coaching, and qualification programs, funding lasts one year
- Example: A vocational school-trained IT specialist develops a cybersecurity platform and receives coaching on business model development.
2. Funding Programs for Startups
Young companies with technologically sophisticated products and high growth ambitions have access to several BMWK initiatives. Here’s an overview:
a) High-Tech Gründerfonds (HTGF)
The High-Tech Gründerfonds (HTGF) is one of Germany’s leading early-stage investors, providing technology-driven startups with venture capital and access to networks.
- Target group: Highly innovative, technology-oriented startups
- Amount: Up to €1 million (in the first round), max. €4 million per company
- Type: Equity financing (venture capital)
- Key feature: Focus on technological innovations with scalable business models
- Example: A MedTech startup develops an AI-powered diagnostics solution and receives €1 million for product development.
b) High-Tech Gründerfonds Opportunity
The HTGF Opportunity Fund provides additional capital for later financing rounds for startups that have already received initial funding from the HTGF.
- Target group: Startups that have already received HTGF funding
- Amount: Up to €30 million
- Type: Equity financing (venture capital)
- Key feature: Enables follow-up financing without seeking new VC investors
- Example: A biotech startup that previously received HTGF funding secures an additional €9 million for clinical trials.
c) DeepTech & Climate Fund (DTCF)
The DeepTech & Climate Fund (DTCF) invests in startups with a technology or climate protection focus that require significant capital.
- Target group: Startups building in DeepTech or ClimateTech
- Amount: Up to €30 million
- Type: Equity financing (venture capital)
- Example: A startup developing eco-friendly battery technology receives €15 million to scale production.
d) RegioInnoGrowth
RegioInnoGrowth is a joint program with Germany’s federal states that supports innovative startups regionally.
- Target group: Innovative startups with digital, ecological, or social business models
- Amount: Up to €5 million
- Type: Mezzanine capital or subordinated loan
- Example: An AgriTech startup in Baden-Wuerttemberg develops an AI-powered sustainable farming platform receives €3 million in funding, after speaking to the regional Mittelständische Beteiligungsgesellschaft.
e) German Accelerator
The German Accelerator helps German startups expand internationally by providing mentoring, networks, and market entry strategies.
- Target group: Startups aiming for international expansion
- Support: Individual mentoring, workshops, and access to global networks
- Markets: USA, Asia, South America
- Example: A German SaaS startup in business automation gains entry to the US market via the German Accelerator.
f) Venture Tech Growth Financing (VTGF)
The Venture Tech Growth Financing (VTGF) program provides technology-driven growth companies with VC-backed access to debt financing.
- Target group: Fast-growing, technology-driven companies
- Amount: Flexible growth financing, often combined with private lenders
- Type: Venture debt (loan) for expansion financing
- Example: A FinTech startup secures €10 million for customer acquisition and international expansion.
3. Funding Programs for Business Angels
INVEST – Grant for Venture Capital
The INVEST program supports private investors, particularly business angels, in financing innovative startups to channel more private capital into technology-oriented companies.
- Target group: Private investors, particularly business angels
- Amount: 15% grant on investments, 25% exit grant on sales of shares and max. €100,000 per investor and €3 million per company
- Type: Grant (no repayment, tax-free for investors)
- Example: A business angel invests €200,000 in an AI startup, receives a €30,000 investment grant, and, after five years, can claim a 25% tax-free exit grant on the capital gain.
4. Funding Programs for Venture Capital Investors
a) ERP/EIF Fund of Funds
The ERP/EIF Fund of Funds invests in European venture capital funds that support startups and growth-stage companies. The initiative aims to foster innovation and improve access to venture capital for young businesses.
- Target group: Venture capital funds
- Funding amount: Dependent on fund volume and co-investors
- Type: Fund of funds investment (co-investment with private investors)
- Key feature: Joint financing with private investors to strengthen European VC structures
- Example: A European VC fund specializing in AI and automation receives capital from the ERP/EIF Fund of Funds to invest in German startups.
b) European Tech Champions Initiative (ETCI)
The European Tech Champions Initiative (ETCI) is a pan-European growth fund designed to support venture capital funds with large-scale financing. Its goal is to help European scale-ups compete globally and match the investment levels of U.S. and Chinese investors.
- Target group: Venture capital funds focused on large-scale financing
- Funding amount: Up to €1 billion
- Type: Fund of funds investment
- Key feature: Focus on scale-ups, with pan-European participation to strengthen the VC ecosystem
- Example: A European growth fund secures ETCI capital to fund a German DeepTech startup’s financing round.
c) GFF EIF Growth Facility
The GFF EIF Growth Facility provides capital for venture capital funds investing in high-growth technology companies. The program is designed to support the long-term scaling of innovative businesses.
- Target group: Venture capital funds
- Funding amount: Variable, depending on fund size and investment strategy
- Type: Fund of funds investment
- Key feature: Expands capital access for scale-ups with high funding needs
- Example: A European fund focusing on sustainable technologies secures funding from the GFF EIF Growth Facility to invest in CleanTech startups.
d) ERP/Future Fund Growth Facility
The ERP/Future Fund Growth Facility supports venture capital funds that specialize in scaling and internationalizing innovative technology companies.
- Target group: Venture capital funds for large-scale financing
- Funding amount: Up to €1 billion
- Type: Fund of funds investment
- Key feature: Facilitates funding rounds for European scale-ups with significant capital needs
- Example: A VC fund investing in biotech startups in the growth phase secures capital from the Future Fund Growth Facility.
e) Growth Fund Germany
The Growth Fund Germany provides financing for venture capital funds that invest in late-stage European tech companies. The initiative aims to strengthen Germany’s startup ecosystem on a global scale.
- Target group: Venture capital funds for large-scale financing
- Funding amount: Up to €1 billion
- Type: Co-investment with institutional investors
- Key feature: Enables funding rounds for scale-ups that already have an established business model
- Example: A leading German VC fund leverages the Growth Fund Germany to close a €50 million financing round for an AI startup.
f) ERP VC Fund Investment
The ERP VC Fund Investment provides capital for venture capital funds that invest in European startups and scale-ups. The objective is to enhance innovation and competitiveness in the German economy.
- Target group: Venture capital funds for large-scale financing
- Funding amount: Up to €1 billion
- Type: Co-investment with private investors
- Key feature: Focus on long-term capital availability for European tech companies
- Example: A cloud computing-focused VC fund secures capital from the ERP VC Fund Investment to finance startups with scalable SaaS models.
Summary
The Federal Ministry for Economic Affairs and Climate Action (BMWK) offers a wide range of funding opportunities for startups—from grants and loans to equity financing. Whether it’s founding, growth, or scaling, there are suitable programs for every stage.
If the variety of options seems overwhelming, we at Capvisory are happy to help you find the right financing for your startup. Feel free to reach out!
💡 Tip: A complete overview of all funding opportunities can be found in the BMWK Funding Database: www.foerderdatenbank.de.
Capvisory is an independent, founder-led advisory boutique specializing in fundraising, sell-side M&A, and buy-side M&A for fast-growing tech companies and their investors.
