Similar to INVEST, the European Angels Fund (EAF) targets business angels and other non-institutional investors with the aim of financially strengthening innovative companies in the early, early or growth phase. The funding consists of co-financing. This means that the EAF participates in a young company with the same amount that the Business Angel invests in the company (50:50 co-investment). The investment should be between 250,000 and 5 million euros.
ERP / EIF Fund of Funds
To encourage venture capital (VC) funds to invest in young innovative companies, the ERP / EIF fund of funds offers equity investments. It invests in VC funds that invest in technology companies in the early, development or growth phases. On the one hand, the program is aimed at VC funds, which support initial technology investments in technology transfer from public and private research institutions. On the other hand, the ERP / EIF funds of funds are aimed at VC funds offering follow-up financing for technology companies in the early and growth phase.
ERP VC funds Investments
The ERP VC fund investments also participate in VC funds. These are selected VC funds that invest in young technology companies. The aim is to enable the further development of innovative companies in particular. The investments are made available by the KfW banking group.
Support on the way to the international market
Most start-ups are aiming for an international market in the short or medium term. Underestimated is usually the time and expense for:
- Country-specific market and industry research
- Customer acquisition and targeting
- Staff on site
- sales Development
- Marketing activities
For start-ups who are ” on the move” in information and communication technologies (ICT), fintech, cleantech or the life sciences, the US market is particularly important because of its size, its uniformity and its start-up Hubs like Silicon Valley are particularly attractive. But competitive pressure is far greater for German companies in the US market than in Germany. Dirk Kanngiesser, co-founder and managing director of German Accelerator, made this experience: ” A young company needs to know how the American market is ticking. It is often underestimated that the market introduction of products usually takes longer than planned. “
With the German Accelerator, the Federal Ministry of Economics offers young entrepreneurs from Germany the opportunity to get to know the US market and make contacts with potential investors and customers.
For life science foundations: German Accelerator Life Sciences (GALS)
The German Accelerator Life Sciences (GALS) supports young entrepreneurs with a focus on digital health, diagnostics, research reagents, medical technology, platform technologies or therapeutics. In Boston / Cambridge, the largest life sciences cluster in the US, they can test and develop their business ideas, products and services on the US market for several months. In addition, the GALS provides companies with contacts to potential customers, employees, strategic partners and investors.
For tech startups: German Accelerator Tech
The German Accelerator Tech gives companies from the high-tech and digital industries access to comprehensive mentoring and coaching opportunities during their several-month stay in the USA. Among other things, it clarifies whether the business plan is suitable for the US market and enables further internationalization (global benchmarking). A team of serial entrepreneurs, experts and investors accompany the entrepreneurs on the east and west coasts of the USA: either in Palo Alto / San Francisco or New York City.
An important prerequisite for participation in the German Accelerator is that the applicants’ business plans have high growth potential and international expansional character. Information on all other application details can be found on the website of the German Accelerator.
(Source: GründerZeiten extra, BMWi, Berlin)
You might also be interested in these articles:
- Start-ups: Growth Phase: Financing Business Growth
- Start-up financing – promotion of equity capital
- Start-ups: financing and venture capital
- Start-ups: Seed phase: Financing the start of a company Part 1
- Social entrepreneurship – promoting social enterprises
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