This is where young start-ups get money

Those who want to realize their start-up idea often need outside capital early on. At the very beginning, founders can rely on business angels, incubators or government funding. A brief overview.

The fact that start-ups manage to finance themselves from the beginning only from their own funds is rather rarely the case. Often founders need money early on and even before the official foundation. In doing so, they have quite a few options.

Laying the foundation in the seed phase

The seed phase describes the time before the actual founding of the company. In this phase, founders work on their first prototype or concretize their business idea. During this phase, founders should, among other things, draw up a business plan

. In it, they record their concept and provide themselves - as well as potential investors - with an overview of their financial planning. If they want to finance themselves later, for example through a bank loan, a detailed business plan is essential anyway.

In this very early phase, it is still difficult for founders to convince financiers. Many therefore often rely on their own deposits or capital from acquaintances. Who does this, should document absolutely exactly, who put when how much money into the enterprise. This should then be clearly regulated who has what interest claims or how large their shares in the company are.

Apply for ERP loans via KfW

If you already want to take out a loan at this early stage, you should take a look at which loans the Kreditanstalt für Wiederaufbau (KfW) promotes. The state development bank has three different types of financing on offer

for founders.

To finally obtain a KfW loan, founders must turn to a financing partner. This can be, for example, a commercial bank or a financial intermediary. This partner then submits the application to KfW. The development bank then checks whether the founder meets the respective requirements and, at best, grants the loan.

One of the three financing options is the "ERP-Gründerkredit - StartGeld

". With him there is up to 125,000 euros to finance running costs and investments. In addition, KfW assumes up to 80 percent of the credit risk. This loan is intended for start-ups as well as young and small companies.

The "ERP capital

" with up to 500,000 euros is intended to strengthen the equity capital of a start-up. Companies can apply for this money up to three years after their foundation. Within the first seven years, they do not have to make any repayment instalments, only interest payments. In addition, KfW assumes the credit risk completely. A prerequisite for this is that the company still has under 250 employees and a turnover of less than 50 million euros.

The third product offered by KfW is the "ERP Start-up Loan - Universal

". This is characterised by a reduced interest rate of 1.00 to 2.12 percent. With the help of this loan, founders should be able to make new purchases, for example for machines, company vehicles or software. Due to the Corona crisis, KfW has currently adjusted this loan. For start-ups affected by Corona, KfW assumes 80 to 90 percent of the bank risk. In addition, it waives a risk assessment for loans of up to three million euros in order to speed up the procedure. The prerequisite for this is that the start-up has only been active on the market for three to five years, can already present two annual financial statements and has only run into difficulties due to Corona.

The High-Tech Gründerfonds and incubators

Anyone founding a technology start-up can turn to the High-Tech Gründerfonds

(HTGF). HTGF supports young companies with high growth potential, whereby the decision whether HTGF invests in a start-up is made according to market economy criteria. According to its own information, HTGF has already invested in almost 600 start-ups and has already had some successes. The fitness start-up eGym is part of the portfolio, as is Next Kraftwerke, the operator of a virtual power plant.

But young companies can also try going to an incubator. Incubators offer the advantage of providing financial resources as well as infrastructure such as offices. The aim of these institutions is to support start-ups throughout the entire start-up process. Therefore, experts are often also on site, for example lawyers or business consultants. For founders, networking with like-minded people there can also be crucial. Which incubator is right for whom depends entirely on the individual case.

Business angels can become investors

Another possibility to get money are business angels. These are often successful entrepreneurs who are willing to advise a start-up, provide contacts - and even put initial venture capital into the project. Through them, up to 100,000 euros can be raised. In return, however, they want to share in the company's success. In return for your investment, a business angel therefore receives shares in the company. He makes profit if he sells his shares later at a higher price.

Founders should agree on three points with their business angel: how many shares he will get, how long his investment will last and how much money he will invest. Who is in search of a Business Angel, which can turn for example to the federation "Business Angels network Germany". The also lists all its members publicly viewable.


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