Innovationsstarter Fund Hamburg III (IFH III) – Equity Capital for Young Innovative Companies

The Innovationsstarter Fund Hamburg III (IFH III) supports young, technology-oriented corporations headquartered and operating in Hamburg, which have been on the market for a maximum of five years and demonstrate a clear innovation focus. Funding is provided to small and medium-sized start-ups (under 50 employees, annual turnover or balance sheet total under €10 million), whose key knowledge holders hold the majority of shares and who have not yet distributed any profits. Applications can be submitted continuously to IFB Innovationsstarter GmbH at any time. Financial instruments include equity participations, convertible loans, or subordinated shareholder loans. Up to €1.5 million per company is possible, with a maximum of €800,000 per financing round. The goal is to close the equity gap in the early phase and accelerate growth as well as value enhancement potential.

Evaluation criteria include the level of innovation of the concept, an existing minimum viable product with initial market feedback, the quality and experience of the founding team, and a coherent exit perspective. Prerequisites for funding include, among others, a pitch deck, a financing and business plan, and, if applicable, an external appraisal. Companies operating in sensitive sectors such as controversial armaments, environmentally harmful raw material extraction, or gambling, or those violating ESG principles, will not be considered. Through this targeted equity participation, IFB Innovationsstarter GmbH promotes, on behalf of the Authority for Economy and Innovation and with funds from the ERDF, the sustainable innovative strength and competitiveness of the Hamburg start-up location.