Investment grant

INVEST – grant for venture capital

In 2013, German government launched a grant specifically designed for Business Angels investments, called INVEST. Altogether the state provides 150m € over the course of four years.

BAND accompanied the creation of the grant, which aims to support private investors providing seed funding for start-ups. The angel investors receive a grant of 20% of their investment when the following standards are met.

General framework of the grant:

  • Investment between 10,000€ and 250,000€
  • Maximum grant per year per investor of 50,000€
  • Maximum investment of 1m € per company per year
  • Lock-up period of three years

Requirements for the company:

  • Not older than 10 years
  • SME in the definition of EU: less than 50 employees, maximum revenue or gross assets of 10m €
  • Not to be listed on the stock exchange
  • Head office within the EU, at least one branch in Germany
  • Carry on an innovative trade as defined by a list of the Federal Office of Statistics
  • Not to be dominated by another company

Requirements for the investor:

  • Natural person with permanent residence in the EU or a GmbH (limited company) with up to four shareholders
  • Investment needs to made on one’s own account
  • No credit financing
  • No shareholder
  • Not associated with the company

Rules of the process:

  • Companies apply for eligibility at BAFA (Bundesamt für Wirtschaft und Ausfuhrkontrolle
  • Investor applies for the grant separately afterwards
  • Payment is due not until the verification of the investment

INVEST guidelines (German) (PDF)

INVEST Directory

BAND is hosting an online directory of those companies which are eligible in the framework of the "Investment Grant for Business Angels". The online directory is only available in German.

Online directory of eligible companies (the directory is not exhaustive)