New INVEST funding guideline effective February 6, 2023

As announced by the German Federal Ministry of Economics and Climate Protection (BMWK), the new INVEST funding guideline came into force on February 6, 2023. Applications for INVEST funding can therefore be submitted to BAFA again with immediate effect.

Start-ups often fail in the early phases because they do not have the necessary venture capital. This is exactly where the BMWK comes in with its INVEST funding program, which consists of an acquisition grant and an exit grant: With the acquisition grant, business angels receive a tax-free refund of 25 % of their investment if they invest at least EUR 10,000 in venture capital in start-ups. With the exit grant, taxes on profits from the investments can also be reimbursed as a lump sum.

In this way, INVEST supports on the one hand young innovative companies in their search for an investor for the start-up capital they need. On the other hand, the funding program motivates private investors - especially business angels - to provide venture capital for these companies at all or more than before.

The funding conditions were adjusted with the new guideline and thus significantly improved overall:

  • 25 % acquisition grant for direct acquisition of shares (previously 20 %) and for convertible loans (previously 10 %)
  • Introduction of an “INVEST budget” of EUR 100,000 in acquisition grants per investor (i.e. no further INVEST funding if EUR 100,000 in acquisition grants have been paid out or approved)
  • EUR 10,000 minimum investment amount (previously EUR 25,000)
  • EUR 200,000 maximum eligible investment amount per investment
  • Limitation of the exit grant to 25 % (previously 80 %) of the investment amount
  • Extension of the permissible legal forms for eligible companies to include registered cooperatives (eingetragene Genossenschaften, eG)

We support both start-ups and business angels in all their business management and tax matters and are glad to assist a funding via the INVEST program with our expertise.