Financing your own company and starting your own business represent a very big hurdle for many other founders like you. Many of them fail despite great business ideas at this initial hurdle . Founders in the fields of innovation and technology in particular have a high need for capital and need appropriate financiers and investors. The high-tech start-up fund can be of great help in closing the financing gap that is threatening, especially in the early phase of founding .
What is the high-tech start-up fund?
Young technology companies are supported by the High-Tech Gründerfonds with seed capital . This means that in the early stages of the company’s development you will receive a subset of the start-up financing. As early as the first financing round, your company can receive up to one million euros as a subordinated shareholder loan.
The High-Tech Start-up Fund Management GmbH , abbreviated simply as HTGF called, was founded in the year of 2005. In Germany he is considered to be the most active investor in the early stages of a start-up . As things stand at the moment, the High-Tech Gründerfonds can point to the proud sums of money that startups in the field of innovative technology are used to finance.
According to TOPBBACOLLEGES, the total of the HTGF amounts to up to 892.5 million euros, which is spread over three funds.
What does the High-Tech Gründerfonds do?
The task of the High-Tech Gründerfonds can be described quickly and easily. This fund is intended to support innovative business ideas and the aim is that this support will help companies in this important start-up phase . The focus of investments in the High-Tech Start-up Fund is therefore clearly in the seed phase. The following investment topics form particular focal points:
- Life sciences
- Material Science
- Engineering sciences that are hardware-related
But it would be wrong to assume that the focus is only on capital. The HTGF also aims to provide very strong support in the network. As already mentioned, the High-Tech Start-up Fund currently comprises three funds. These have a total volume of up to 892.5 million euros. This capital is made available by public donors such as the BMWi , Fraunhofer-Gesellschaft eV and KfW . There are also 29 other private companies that act as public-private partnerships .
Requirements for the high-tech start-up fund
In order to receive support from the High-Tech Start-up Fund, you must of course meet certain requirements . Above all, one point is particularly in the foreground.
In addition to the necessary know-how, you and your founding team need sufficient motivation, a promising opportunity in the market and a high degree of technology orientation.
But that is not enough. There are other requirements that you have to meet.
- The establishment and the start of your business activities must not have been more than three years ago.
- Equity-like financing must not have exceeded a maximum limit of 500,000 euros.
- You have the headquarters and the location of your startup in Germany.
- For you, the EU limits for small companies apply, which provide for an annual turnover or an annual balance sheet total of 10 million euros and the number of your employees must not exceed 49.
How does the HTGF work?
There is a cooperation between the HTGF and the Deutsche Börse Venture Network . This means that you benefit from very close support in matters relating to financing and growth, starting with the seed phase and ending with the so-called exit. This accompaniment is optimally coordinated. In the first phase of financing, in the early phase, the HTGF is your first point of contact . In the further course of your growth, the Deutsche Börse Venture Network will offer you access that currently includes more than 300 international investors.
How can you get a high-tech start-up fund?
In addition to the above-mentioned requirements for a high-tech start-up fund, you have to do other things so that you can receive it. In detail, the following steps are necessary for this:
- In the first step, you have to send your business plan to the High-Tech Start-up Fund. This represents the absolute basis and nothing works without it. If necessary, the Start-up Fund can also provide you with support in the form of accredited coaches,
- If a positive decision is made about your business plan and your documents, you will get an appointment for a personal interview .
- At this appointment, too, it will be decided whether you are suitable or not. If so, you will receive a so-called term sheet on which all financing conditions are listed.
- Following a signature, there is the so-called due diligence . This is a detailed examination of your project. The given criteria form the basis.
- If everything goes smoothly, you will receive an investment recommendation, which goes to one of the investment committees. You then have to give your final presentation to this very committee. This then votes on whether or not there should be participation. In the best case scenario, you will then already receive a commitment for your financing.
The High-Tech Start-up Fund states that it is possible to go through this investment process in a period of two to three months .
If you have to create a business plan for the first time and are still unsure about it, we recommend using a business plan template . All the necessary information is already included, you just have to fill in the template with your idea and your business model.