Businesses in Germany will receive government investment

The government investments for businesses in Germany

In recent years, Europe has experienced economic difficulties that have affected all market participants. In Germany, business investment has declined, particularly in the technology sector. The government has set aside €12 billion to support start-ups. As part of the initiative, representatives of the authorities, businesses, and KfW Bank have signed a declaration to this effect.

The authorities hope that these investments will contribute to strengthening the venture capital sector. The funds will not only assist start-ups but also stimulate innovation and create a more favourable business environment, which will help improve the overall business environment in the country.

Overview of government grants

It is worth noting that these investments in IT are not new to Germany. The local government has a long history of supporting the development of innovation and helping start-ups. This has made the country one of the most attractive for new technology companies. There are ten types of government grants available for start-ups in Germany. Each has its characteristics to cover different projects that need support.

Here is an overview of the most popular grants and their conditions:

1. EXIST. A support programme aimed at university students and graduates. Includes two types of grants. The first offers a limited amount of funding to get a business idea off the ground. At the same time, the start-up company receives a minimal income. The second type of grant covers product development costs. EXIST reimburses students for accommodation, materials and equipment. 
2. High-Tech Gründerfonds (HTGF). A seed fund aimed at helping start-ups to get off the ground and scale. HTGF receives support from the government and partners. It has €900 million and a portfolio of 600 start-ups. To receive a grant, a company must meet a number of requirements, such as being no more than three years old. In addition, the fund supports start-ups with a minimum capital of €500,000.
3. Gründung Innovativ. Aimed at representatives of small and medium-sized enterprises. The grant covers the costs of start-ups in the first three years of their existence. Between 25 and 100 thousand euros are allocated to cover salaries, equipment, licences and other fees. At the same time, the company itself must invest at least 50% of the total costs of the company.

Another programmes

BarTOU is a programme of the Bavarian government that supports new projects. It targets software developers in particular. It covers up to 35% of the costs for medium-sized companies and up to 45% for small companies. The maximum grant is €150,000. 

MEP is a grant from the Saxon government covering up to 75% of start-up costs. Priority for support is young companies that are less than five years old. Other projects can expect funding of up to 50% of the total amount.

The German government has other ways of supporting start-ups. Such initiatives are already yielding good results, and the number of start-ups in the country is growing.