INVEST – Grant for Venture Capital
Nationwide funding program that supports private investments in young, innovative companies by business angels with tax-free grants. Acquisition grant of 15% of the issue price of new shares, exit grant of 25% of the profit. Applications for company eligibility until 31.12.2026, for exit grant until 30.06.2037.
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Grant criteria
Funding objective
The aim of the program is to encourage business angels and private investors to provide private venture capital to young innovative companies in order to improve their capital base and growth. Funding is provided for the acquisition of newly issued business shares or stocks (acquisition grant) as well as the flat-rate tax reimbursement on profits from their sale after a minimum holding period (exit grant).
Eligible expenses
- Acquisition of new business shares
- Conversion of convertible loans into equity
Non-eligible expenses
- Assumption of existing third-party shares
- Repayment loans and conversion of old loans
Eligible to apply
- Founders
- Individuals
- Companies
- Cooperatives
Funding requirements
- Adult natural person or investment company with registered office and shareholders in the EEA
- Acquisition of newly issued shares or conversion of a convertible loan on own account
- Minimum investment €10,000 and minimum holding period 36 months
- Economic motivation based on a business plan
- Company younger than 7 years, HQ in the EEA with branch/establishment in Germany
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Documents required for application
- Subscription certificate or participation agreement
- Bank statement showing payment of the issue price
- Company confirmation of payment receipt
- Power of attorney form (for authorized application submission)
Evaluation criteria
- Degree of innovation of the company
- Market conformity of the participation agreement
- Quality of the business plan
- Location and creditworthiness of the start-up
Description
The INVEST funding program – Grant for Venture Capital supports private investors – especially business angels and investment companies – in financing young, innovative companies in Germany. To strengthen the equity base, the Federal Ministry for Economic Affairs and Energy (BMWK) provides a tax-free acquisition grant amounting to 15% of the issue price of newly issued shares or stocks. Additionally, after a minimum holding period of 36 months, an exit grant of 25% of the profit from the sale of the funded shares can be applied for. Up to €3 million in investment per company per year and a total of €450,000 in grants can be approved. Applications for eligibility determination are open until December 31, 2026, and for the exit grant until June 30, 2037, at the latest.
Eligible are natural persons of legal age with their main residence in the European Economic Area or GmbH/UG business angel companies comprising up to ten shareholders. The prerequisite is the acquisition of new shares or the conversion of a convertible loan, an economic motivation based on a business plan, as well as a realistic exit strategy. The young company must be no older than seven years, meet SME criteria and innovation characteristics, and maintain its headquarters in the EEA with a place of business or branch office in Germany. For the application to the Federal Office for Economic Affairs and Export Control (BAFA), among other documents, the subscription certificate or participation agreement, bank statement, payment confirmation from the company, and, if applicable, a power of attorney must be submitted. The program mobilizes private venture capital and promotes growth and innovation in German start-ups and small enterprises.
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