Equity participation

NRW SeedCap

Equity participation for young, innovative corporations (UG/GmbH) in North Rhine-Westphalia: NRW.BANK matches business angel investments from €100,000 to €500,000 (up to €750,000 for climate and environmental technology) on a pari passu basis. Applications accepted at any time.

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Grant criteria

Application Deadline: Ongoing
Application level: Advanced
Region: North Rhine-Westphalia
Company size: SME
Funding amount: €100,000 – €500,000 (up to €750,000 for climate and environmental technology)
Funding rate: 50%

Funding objective

The funding aims to provide young companies without sufficient access to financing options with equity or equity-like capital. NRW.SeedCap co-finances investments in innovative processes, products or services, operating resources, business model validation, as well as market launch and growth.

Eligible expenses

  • Investments
  • Operating resources

Non-eligible expenses

  • Buyout of existing shareholders
  • Repayment of external debt obligations

Eligible to apply

  • Companies
  • Founders

Funding requirements

  • Company form UG or GmbH in the start-up phase (max. 36 months, follow-up financing up to 60 months)
  • EU SME definition
  • Registered office and main business activity in North Rhine-Westphalia
  • Involvement of a private business angel or seed investor on equal terms
  • No financial difficulties

Documents required for application

  1. Application forms of NRW.BANK
  2. Business plan
  3. Proof of investor involvement

Evaluation criteria

  • Innovative content
  • ESG compliance
  • Investor participation

Description

NRW.SeedCap supports innovative start-ups and young corporations (UG/GmbH) in North Rhine-Westphalia in the founding or early growth phase with equity participations ranging from €100,000 to €500,000 (up to €750,000 for climate and environmental technology). NRW.BANK doubles the equity capital contributed by private business angel investors or seed investors under the same conditions. Funding is provided for investments in novel processes, products, or services as well as operating resources, business model validation, market launch, and further growth. The funds can be drawn in multiple financing rounds; follow-up financing is possible up to a company age of five years.

Eligible are SMEs in the legal form of a GmbH or UG, whose founding dates back no longer than 36 months (initial financing) or 60 months (follow-up round). A coherent business plan and the involvement of at least one experienced group of investors are prerequisites. The company must have its registered office and main operational focus in North Rhine-Westphalia and must not be in financial distress. The funding comprises an open equity participation with a funding rate of 50% and supports founders in bridging equity gaps, improving their rating, and strengthening their own network. Applications can be submitted at any time; for this purpose, the application forms of NRW.BANK, a business plan, and proof of investor involvement must be submitted.

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