Equity Capital of Bayern Kapital – Innovation Fund ERDF II Bavaria

The EFRE II Innovation Fund of Bayern Kapital GmbH offers technology-driven SMEs in the Bavarian EFRE regions (excluding the Greater Munich area) attractive financing opportunities. With an equity participation of up to €2 million (under certain conditions up to €2.5 million), innovation projects in the phases of concept, research & development, establishment, and expansion are supported. Open and/or typically silent partnerships as well as subordinated loans with conversion options are employed. The goal is to strengthen Bavaria as a technology location by financially supporting young high-tech companies in the development and scaling of market-ready products or processes. Co-financing by an independent private investor in the same amount (at least 30% of the total equity capital) ensures professional supervision and a balanced risk-reward profile.

Eligible for funding are small and medium-sized corporations headquartered in the Bavarian EFRE regions outside the Greater Munich area that develop technological innovations with a clear competitive advantage and can demonstrate the necessary technical expertise as well as a robust financing concept. Companies in difficulty as well as projects in agriculture, fisheries, coal, mining, shipbuilding, or steel are excluded. Selection criteria include, in particular, the degree of innovation and technological maturity of the project, the quality and commitment of the private investor, and the financing structure. Applications can be submitted on an ongoing basis; a participation application and the statement of the investors must be submitted. This provides founders and established high-tech personnel in Bavaria with a solid foundation to pursue sustainable market success with professional expertise and networks.