innoWerft is a Start-Up BW Pre-Seed partner!
Particularly in the early stages, many founders lack the necessary funding. That’s why innovative business ideas often fail to take off. However, the State of Baden-Württemberg wants to change that in future and has created early-stage funding for start-ups at the very beginning of their journey.
‘To stimulate the founding dynamic significantly we need a new risk culture. We must therefore have the courage to try new approaches, including when it comes to financing instruments.’ That’s what economics minister Dr Nicole Hoffmeister-Kraut said at the launch of the new programme.
The Pre-Seed programme is an important step for supporting founders in Baden-Württemberg. It supports innovative founders in the so-called Seed-Phase. That’s the phase in which the initial idea of a product or service begins to take shape. It’s also the phase when investors often tend to hold back. Because the risk on their investment is very high.
That’s why the State of Baden-Württemberg wants to support start-ups with €14 million in 2018 and 2019. It assigns the funds in close cooperation with experienced accelerators, incubators or start-up initiatives. The role model for Start-Up BW Pre-Seed is the successful early-stage funding system in Israel.
Each company is to receive €50,000 to €200,000. The mezzanine financing instrument does not require the usual security. A fifth (20%) is to come from investors. The majority is provided interest-free by the Federal State. The process is managed by the L-Bank (Die Staatsbank für Baden-Württemberg).
The start-up receives total funding of €200,000. The portion provided by the Federal State comes to €160,000 (80%). Of that, the Federal State pays €20,000 as a grant (non-repayable). In addition there is a convertible loan of €40,000 (20%) from programme partners, business angels or venture capitalists.
The state funding includes a conditional repayment provision and a conversion option at the level of the remaining amount. It is repayable after two to five years, provided the company has sufficient liquidity. Within the first twelve months the start-up has the right to repay at an interest rate of 20% per year. There is also a right to convert when entering an evaluated financing round.
The goal is to support young start-ups with their headquarters in Baden-Württemberg. They should be growth-oriented and display an above-average degree of innovation. During the support phase the start-ups must develop a business model. At the same time they should develop market-ready products or services so they can get their business model ready for financing.
innoWerft is one of them, along with next Mannheim and the Technologiepark Heidelberg. ‘Together we want to advance start-ups, providing them with the tools they need’, says Thomas Lindner, innoWerft CEO. ‘In the first phase in particular, it’s important for start-ups to have strong partners by their side whom they can rely on’, he continues.
The Up2B Accelerator is run together with partners from Heidelberg and Mannheim. Up2B is a programme funded by the Federal State and the EU. It offers short-term programmes that prepare start-ups for their first investment. The Start-Up BW Pre-Seed programme mainly aims to support successful Up2B Accelerator participants. However, it is also available to other start-ups in the project partners’ networks.
- Breakthrough | For young start-ups
- Product Booster | For advanced start-ups
- Fire Camp | For market-ready start-ups
innoWerft is a Start-Up BW Pre-Seed partner accredited by the State of Baden-Württemberg. We were involved early on when the model was being developed and were able to bring in our own ideas. innoWerft can also be a co-investor for suitable founders. Whether as a co-investor or in a support partnership, innoWerft works completely free of charge. Because every penny of the funding goes to the start-up.
Founders come to us, at innoWerft. We check whether the start-up project is suitable for Start-Up BW Pre-Seed and explain the funding instrument in more detail. If the programme is a good fit, we help the start-up find a suitable co-investor, because 20% of the funding must come from a third person or organization. This could be innoWerft, a business angel, a fund or a bank. But it must be someone who is not directly connected with the start-up. We prepare the paperwork together and send it to the L-Bank. They make a quick and uncomplicated decision.
It’s quick, it’s straightforward, and the funding is between €50,000 and €200,000. €20,000 of it is even a grant. The rest is a convertible loan with very attractive conditions. So it can be used to finance founding projects that are not yet ready for a classic start-up model. As the name says: pre-seed.
Ask us about it – we look forward to talking to you!
innoWerft is a Start-Up BW Pre-Seed partner!
Particularly in the early stages, many founders lack the necessary funding. That’s why innovative business ideas often fail to take off. However, the State of Baden-Württemberg wants to change that in future and has created early-stage funding for start-ups at the very beginning of their journey.
‘To stimulate the founding dynamic significantly we need a new risk culture. We must therefore have the courage to try new approaches, including when it comes to financing instruments.’ That’s what economics minister Dr Nicole Hoffmeister-Kraut said at the launch of the new programme.
The Pre-Seed programme is an important step for supporting founders in Baden-Württemberg. It supports innovative founders in the so-called Seed-Phase. That’s the phase in which the initial idea of a product or service begins to take shape. It’s also the phase when investors often tend to hold back. Because the risk on their investment is very high.
That’s why the State of Baden-Württemberg wants to support start-ups with €14 million in 2018 and 2019. It assigns the funds in close cooperation with experienced accelerators, incubators or start-up initiatives. The role model for Start-Up BW Pre-Seed is the successful early-stage funding system in Israel.
Each company is to receive €50,000 to €200,000. The mezzanine financing instrument does not require the usual security. A fifth (20%) is to come from investors. The majority is provided interest-free by the Federal State. The process is managed by the L-Bank (Die Staatsbank für Baden-Württemberg).
The start-up receives total funding of €200,000. The portion provided by the Federal State comes to €160,000 (80%). Of that, the Federal State pays €20,000 as a grant (non-repayable). In addition there is a convertible loan of €40,000 (20%) from programme partners, business angels or venture capitalists.
The state funding includes a conditional repayment provision and a conversion option at the level of the remaining amount. It is repayable after two to five years, provided the company has sufficient liquidity. Within the first twelve months the start-up has the right to repay at an interest rate of 20% per year. There is also a right to convert when entering an evaluated financing round.
The goal is to support young start-ups with their headquarters in Baden-Württemberg. They should be growth-oriented and display an above-average degree of innovation. During the support phase the start-ups must develop a business model. At the same time they should develop market-ready products or services so they can get their business model ready for financing.
innoWerft is one of them, along with next Mannheim and the Technologiepark Heidelberg. ‘Together we want to advance start-ups, providing them with the tools they need’, says Thomas Lindner, innoWerft CEO. ‘In the first phase in particular, it’s important for start-ups to have strong partners by their side whom they can rely on’, he continues.
The Up2B Accelerator is run together with partners from Heidelberg and Mannheim. Up2B is a programme funded by the Federal State and the EU. It offers short-term programmes that prepare start-ups for their first investment. The Start-Up BW Pre-Seed programme mainly aims to support successful Up2B Accelerator participants. However, it is also available to other start-ups in the project partners’ networks.
- Breakthrough | For young start-ups
- Product Booster | For advanced start-ups
- Fire Camp | For market-ready start-ups
innoWerft is a Start-Up BW Pre-Seed partner accredited by the State of Baden-Württemberg. We were involved early on when the model was being developed and were able to bring in our own ideas. innoWerft can also be a co-investor for suitable founders. Whether as a co-investor or in a support partnership, innoWerft works completely free of charge. Because every penny of the funding goes to the start-up.
Founders come to us, at innoWerft. We check whether the start-up project is suitable for Start-Up BW Pre-Seed and explain the funding instrument in more detail. If the programme is a good fit, we help the start-up find a suitable co-investor, because 20% of the funding must come from a third person or organization. This could be innoWerft, a business angel, a fund or a bank. But it must be someone who is not directly connected with the start-up. We prepare the paperwork together and send it to the L-Bank. They make a quick and uncomplicated decision.
It’s quick, it’s straightforward, and the funding is between €50,000 and €200,000. €20,000 of it is even a grant. The rest is a convertible loan with very attractive conditions. So it can be used to finance founding projects that are not yet ready for a classic start-up model. As the name says: pre-seed.
Ask us about it – we look forward to talking to you!