A substantial part of startup advice concerns financing the venture. But even after a successful launch, business development repeatedly brings periods when larger investments are needed. Then applying for public funding is often helpful in several respects.
Public institutions (federal and state governments, and the EU) offer financial support through a wide range of funding programmes. Startups and investments are supported through grants, low-interest loans or guarantees.
In addition to improving the equity ratio and making investments possible, many funding programmes offer another major advantage: reduced risk for banks. A loan from the company’s own bank is also needed to draw down funding. In many programmes, the state assumes part of the liability risk if the borrower cannot meet their payments. As a result, banks are generally more willing to lend for startups and investments.
We have summarised further information on financing your business idea here. Our startup advisers are also available to answer specific questions.
