High-Tech Entrepreneurship Fund
What is the High-Tech Entrepreneurship Fund?
The High-Tech Entrepreneurship Fund stems from an association that financially supports technology businesses in the foundation phase. Additionally, successful business founders and entrepreneurs, established advisors and coaches, and industry inventors from the High-Tech Entrepreneurship Fund are all available as advisors to the young entreprenuers. The financial and advisory support of the High-Tech Entrepreneuership Fund is possible above all, due to contact wih the industry, science, and the finance sector. Partners include research institutions, such as RWTH Aachen, business plan competitions, and coaches, organizations, and technology networks active in the respective subject field. The fund investors include Bosch, Siemens, and Daimler.
With what criteria does the High-Tech Entrepreneurship Fund support start up ventures?
Technological innovation should be at the core of businesses applying. Property rights and intellectual property should be available and unrestricted to the young entrepreneurs and brought into the business. A clear and evident customer benefit and a target market with considerable volume or high growth potential should be identifiable. The technology should also indicate unique selling points, in order to have competitive advantages against other businesses.
The enterprise team distinguish itself through a high level of motivation, persuasiveness, perseverance, devotedness, and commitment to success. Support from the High-Tech Entreprenuership Fund is only possible if the business is no more than a year old. The number of staff may not exceed 50 and the annual turnover may not come to more than 10 million euros. Seed financing should ensured for a 12 to 15 month period of time.
What is the amount of support by the High-Tech Entrepreneurship Fund?
The respective start up is financed with up to 500,000 Euros in an initial funding round. The Entrepreneurship Funds obtains 15 percent of the shares. The fund reserves a further 500,000 Euros for additional financing. The loan has a life of seven years. The interest (currently 10 percent) of the subordinated loan is deferred for four years.
The contribution of the start up to the financing should make up 20 percent (10 percent in the new federal states including Berlin) of the investment amount. Investors may provide half of that (business angels, regional seed funds, private and public investors.
If there is greater capital demand, it is possible to find a need-based solution. Higher finance volumes may result through the inclusion of enterprise allowances and/or further investors,
More information can be found under High-Tech Entrepreneurship Fund.