Startup-Finanzierung - Munich Startup

Every startup grapples with the question of financing. Founding costs, premises, staff, and equipment typically arise from day one. Startups can take various approaches to meeting these financing needs. Below is an overview of the various startup financing options:

Startup financing with the help of government funding

The government supports entrepreneurs with various grant programs to help them establish their own businesses. Here are a few examples:

Students, graduates and scientists who want to realize their business idea have the opportunity to apply for the Exist Founder's Grant of the Federal Ministry for Economic Affairs and Energy. Depending on the applicant's qualifications, the monthly financial support varies between €1,000 and €3,000. The maximum duration is one year.
The Bavarian State Government supports the Bavarian program for technology-oriented start-ups (Baytou) supports startups in the development of their products, processes, and services. Selected young companies receive funding of up to 3 percent of the eligible costs of the concept phase and 45 percent for a development project. The maximum funding amount is €150,000 for software development, and €26,000 for technological work in the concept phase.
The Fledge program The Bavarian Ministry of Economic Affairs supports start-ups from Bavarian universities. It is aimed at students, graduates, and university employees with an innovative business idea in the production and service sectors. Scholarship recipients receive a monthly payment of €2,500 for one year. There is also the option of receiving additional material resources and funding for business coaching. The ministry also offers further extensive funding opportunities for different target groups and sectors to.
Unemployed people who want to end their unemployment by becoming self-employed can, for example, apply to the Federal Employment Agency for Start-up grant This is calculated based on the last unemployment benefit payment plus €300 and is approved for six months. It can then be extended for another nine months. However, the start-up grant is a discretionary benefit; there is no legal entitlement to the funding.

A list of many other government funding programs is available here, especially Bavarian funding programs can be found here.

Financial injections through start-up competitions

One way to raise additional money for your business idea is to participate in Startup competitionsFor example, Baystartup organizes the Munich Business Plan CompetitionHere, startups have the opportunity to present their business ideas to an interested audience of investors, experts, and entrepreneurs in three phases. The competition offers a total of €48,500 in prize money.

The Bavarian State Ministry for Economic Affairs, Regional Development and Energy has also 'Start? Grant!' competition a program that supports technology-oriented start-ups in the field of digitalization in their early stages. The maximum funding amount for winners is 36,000 euros.

But there are also many interesting competitions for founders throughout Germany, such as the ‘German Founders' Prize', the Start-up competition 'Digital Innovations' and the 'Breakthrough Award'.

However, you shouldn't base your financing strategy on this option, because you can never be sure that you'll win one of the competitions. Rather, you can push your startup further with a profit.

Venture Capital

Startups with a scalable business model can Venture capitalists You can get an initial overview of the Munich investor network at our map and in this listVenture capital firms not only support young companies with startup financing, but also offer important industry expertise and serve as a showcase for startups. However, they often demand a large percentage of the company shares in return, and they want to resell these shares later at the highest possible profit.

Young high-tech companies can access financing through the state-supported High-Tech Founders Fund (HTGF) hope. The HTGF is Germany's largest early-stage investor and supports startups with venture capital.
Startups in the areas of Industrial Technologies, Enterprise Software / SaaS and Mobility can apply for financing through the Unternehmertum Venture Capital Partners (UVC Partners). This early-stage venture capital firm focuses on European tech startups with high-growth B2B business models. Investments range from €500,000 to €3 million per financing round, with a total of €12 million per startup.
Also Bavaria Capital Bayern Kapital supports high-tech startups with equity capital from the seed phase to the growth phase. Depending on the stage of the young company, Bayern Kapital provides large amounts of capital.

Further information and program lists are also available from the Munich Network – Network for Entrepreneurship & Innovation and the Federal Association of German Private Equity and Venture Capital Companies (BVK) on.

Startup financing through the crowd

Crowdfunding: Donors do not receive any financial compensation, but rather a thank you for their financial support

Crowd donation: Donation-based financial support for humane, creative or social projects without any consideration

Crowdinvesting: Investors will participate in the future success

Crowdlending: Loans with a fixed interest rate from private individuals who, in turn, get their money back at an agreed time

The most well-known platforms for crowdfunding include Gofundme, Kickstarter, Indiegogo, Startnext, Steady as well as 99 sparks. You can find an overview with tips, network information and funding opportunities in Munich for crowdfunding here.

Bank loans and development loans

Of course, you can also finance your business with a loan. However, it is often difficult to obtain a regular bank loan for a startup idea without being able to offer the bank collateral. In such a case, the Guarantee Bank Bavaria In addition, state credit institutions such as the LfA Development Bank Bavaria or the KfW (German Reconstruction Loan Agency) Loans for start-ups. KfW offers the following options:

ERP start-up loan: up to 100,000 euros for full financing
ERP capital for start-up: up to 500,000 euros for partial financing
ERP start-up loan: also over 500,000 euros for full financing in Germany and abroad

However, this type of loan must also be applied for through your bank. It may be helpful to have a Interview with the LfA be.

Accelerators and incubators

Although most support Accelerator and incubator programs Young companies primarily with the necessary infrastructure and coaching — but some programs also provide financial support. For example, there are also startup programs in the Munich ecosystem that help with startup financing for a new business idea, including the ProSiebenSat.1 Accelerator, the ESA Business Incubation Center (BIC) Bavaria, Nutrition and Wayra.

Business Angels

Business angels are usually successful entrepreneurs who support startups with their equity, experience, and industry expertise. In Germany, there are several business angel associations where you can search for a suitable investor, including Business Angel Network Germany and that Baystartup Business Angel Network.

Startup financing: advice centers and information pages

If you have further questions about startup financing, you can always contact one of the following advisory centers. For example, the Chamber of Industry and Commerce (IHK) first questions in this leaflet, it also offers with its Startup Unit A comprehensive startup consultation, which includes not only financing but also business plans, formalities, legal matters, internationalization, and networking. Innovative, technology-oriented startups will also find IHK Innovation Consulting a suitable contact person. Here you can discuss the possibilities of government research and development funding as well as equity financing.

Baystartup also helps startups find suitable financing options. Within the framework of the so-called Startup financing coaching You can get support in developing a financing strategy and preparing a pitch deck, as well as a business and financial plan. Once you're optimally prepared for your investor pitch with your documents, Baystartup experts will check whether you can be featured in the Baystartup investor network—with over 300 business angels, 100 VCs, and over €60 million in capital raised last year.

In addition, the Funding database A good search function for suitable financing options. Here you can filter by funding area and funding type.

You can find consulting services on the topic of founding a company on our Start-up advice page.

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