To secure the liquidity of domestic start-ups, the state is now helping private investors. The state Funding agency aws announced the details of the already announced Covid start-up aid fund on Friday. Funding is conditional on companies not older than five years and being negatively affected by the Covid crisis.
If such a start-up receives fresh equity from a private investor of at least 10,000 euros, the federal government doubles this amount by one grant up to a maximum of 800,000 euros. The grants only have to be repaid if they are covered by an annual surplus for the next ten years. Applications can only be submitted online via the aws funding manager.
100 million euros total volume
The total grant volume of the aws is 50 million euros. Together with private investors, 100 million euros are to be loosened. The planned venture capital fund is still in the works and is intended to flush additional venture capital into the domestic start-up scene. Aws assumes a capital guarantee of 50 percent of the fund volume.
All questions and answers about the Covid start-up aid fund can be found here