There is a wide range of different financing options for founders nowadays. However, not every model is suitable for every start-up project. You should therefore carefully weigh up the opportunities and risks of each type of financing in advance.

Governmental Support Programs

To support start-up projects in the difficult initial phase, there are government funding programs for technology-oriented start-up projects. The TUM start-up consultancy evaluates together with you whether the application requirements for various funding programs are met and supports you in your application.

You can find an overview of government funding programs in the funding database of the Federal Ministry for Economic Affairs and Energy.

Business Angel & Venture Capital Financing

Venture capital companies are companies that invest in young companies, usually through a venture capital fund. VC funds often focus on one or more industries. By contributing capital, the VC usually becomes a co-partner with all the associated rights and obligations. In addition to capital, VC companies usually also bring in-depth industry knowledge and management expertise to the invested company.

While VC funds are primarily considered as a source of finance for companies that have already been founded, business angels can usually be won over for financial support much earlier in the founding process. Although VCs offer more capital, they often do not provide as intensive advice as a business angel. Young entrepreneurs can share in the wealth of experience of business angels and use their networks and contacts, which can often prove much more valuable in the early start-up phase than pure capital.

The Business Angels Netzwerk Deutschland e.V. (BAND) is the umbrella organization of all business angel networks in Germany and a good place to start when looking for a suitable business angel for your own start-up project.

Search for Business Angels

Many venture capital funds in Germany are organized in the Bundesverband deutscher Kapitalbeteiligungsgesellschaften (BVK e.V.). BVK e.V. offers a search based on investment criteria within its member database.

Start-up Loans & Credits

For a number of start-up projects, it is advisable to take advantage of the funding opportunities for start-ups. The KfW (Kreditanstalt für Wiederaufbau), for example, offers start-up money for start-up projects. The federal government, the states, municipalities and the European Union also offer funding opportunities or guarantees for loans. A guarantee means that the loan is granted by the bank and the funding agency pledges to fully or partially guarantee the loan in case of loss. This type of loan is called a subsidized loan. Banks prefer this type of lending because the risk to them is mitigated. There are a large number of subsidy agencies for this house bank principle. The different subsidies can be combined in some cases.


Do you have any further questions?

Have a look at our FAQ section or contact our team members personally.