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Schleswig-Holstein

INVEST - Grant for venture capital Grants for investments by private individuals in young innovative companies

Source: Zuständigkeitsfinder Schleswig-Holstein (Linie6PLus)

Service Description

The aim of INVEST is to support private investors in providing venture capital to young innovative companies. The aim is to make it easier for companies to successfully finance their market entry and growth phase.

The INVEST funding measure aims to sustainably improve access to private venture capital for young innovative companies. INVEST funding consists of an acquisition grant and an additional exit grant.

The acquisition grant is awarded to private investors (business angels) who acquire shares in young innovative companies and hold the investment for at least 3 years. It amounts to 20 percent of the investment sum when the shares are acquired. The investor must provide the company with at least EUR 10,000. Each investor can receive the acquisition grant for investments of up to EUR 500,000 per calendar year. Investors can invest in the start-up either as a natural person or via an investment company (GmbH or UG) in order to receive the acquisition grant.
In addition, the tax due on a capital gain can be compensated with an exit grant. The investor receives lump-sum tax compensation amounting to 25% of the profit made from the sale of the shares subsidized by the acquisition grant. The exit subsidy is limited to 80 percent of the investment amount of the INVEST shares and is reserved for natural persons.

INVEST is a two-stage procedure, i.e. in the normal application procedure for the acquisition subsidy, the company first submits an application for INVEST eligibility. At this point, the company can either still be looking for investors or have already found an investor for venture capital. BAFA certifies the company's eligibility for funding.
The investor then submits an application to BAFA. BAFA formally examines this application and issues the investor with a notice of approval. Once the investor has acquired a share and paid the investment amount, he or she submits the documents required in the approval notice to BAFA and applies for the grant to be paid out, which takes place after the documents have been checked (payment call-off).


Process flow

Applications for the INVEST grant are submitted online using the forms provided.


1st Company application:

  • Complete the form online and submit the application.
  • Then print out the application form and sign it. Send it to BAFA by post.
  • BAFA will issue an eligibility decision based on the complete application and supporting documents. If individual requirements of the guidelines are not met or if supporting documents are missing, you will receive a rejection.

2nd application by the investor (only after the company has submitted the application):

  • Complete the form online and submit the application.
  • Then print out the application form and sign it. Then send it to BAFA by post.
  • BAFA will issue an approval notice on the basis of the complete application and the supporting documents. If individual requirements of the directive are not met or if supporting documents are missing, you will receive a rejection.

3. call for payment by the investor (after receipt of the investment):

  • Complete the "call for payment" form online and upload the documents required in the notice of approval for the call for payment. Submit the entire form online.
  • Once the documents you have submitted have been checked, the grant will be transferred to the account you specified in the application, provided that all the requirements specified in the guidelines have been met.

4. verification of compliance with the three-year minimum holding period:

  • Upon request by BAFA, applicants must provide evidence of compliance with the minimum holding period requirements on an annual basis.

5 Application for an exit grant:

  • Complete the form online and submit the application.
  • Then print out the confirmation of the truthful information and sign it. Then submit the confirmation to BAFA as a scan in the upload area.
  • On the basis of the complete application and the supporting documents, BAFA will issue a notice of approval and, after the sale has been entered in the commercial register, initiate payment to the investor. If individual requirements of the guidelines are not met or if supporting documents are missing, you will receive a rejection.
Requirements

There are no prerequisites.

Which documents are required?

Company application:

  • Extract from the commercial register
  • If applicable, a description of the company's activities

Investor application:

  • No further documents for applications from natural persons
  • Extract from the commercial register and list of shareholders for applications from investment companies

Investor payment request

  • Electronic form "Call for payment"
  • Account statement from the investor confirming the transfer of the investment amount
  • Written confirmation from the company that the payment has been received
  • Copy of the notarized new partnership agreement/notarized new articles of association
  • Copy of the capital increase resolution including takeover declaration (in the case of a GmbH) or subscription certificate (in the case of a stock corporation)
  • Copy of the loan agreement in the case of an acquisition of shares via a convertible loan
  • Copy of the participation agreement (shareholder agreement/shareholder agreement)

Application for an exit subsidy:

  • Account statement from the investor confirming receipt of the purchase price
  • Sales contract
What are the fees?

There are no costs for the applicants.

What deadlines do I have to pay attention to?
  • Applications from companies and investors must be submitted online to BAFA before the measure is started (e.g. payment of the investment sum, signing of the contract), otherwise no funding can be granted.
  • Notifications of eligibility from companies are valid for 12 months. Investors must have submitted their applications within this period. It is not possible to extend the period of validity of the notifications. However, companies can submit a new application for eligibility.
  • Grant notifications from investors are generally valid for 3 months. Within this period, you must acquire the shares (investment) and provide BAFA with evidence of the implementation of this investment, including payment of the full issue price of the shares to the company. In the case of investments by means of convertible loans or the agreement of milestones, the notifications have a validity period of 24 months. It is not possible to extend the respective period stated in the notification.
  • Applications for the exit grant must be submitted to BAFA no later than 3 months after the sale (date of contract signing).
Processing duration
  1. Company application: approx. 2-6 weeks
  2. Investor application: approx. 4-6 weeks
  3. Investor call for payment: approx. 3-6 months
  4. Exit grant application: approx. 3 months
Legal basis
Appeal
  • Objection
  • Action before the administrative court
Applications / forms
Author
Forwarding service: Deep link to the original portal

The text was automatically translated based on the German content.

Technically approved by

Federal Ministry for Economic Affairs and Energy (BMWi)
Division VII C1

Professionally released on

11.08.2021

Teaser

The aim of INVEST is to support private investors in providing venture capital to young innovative companies. The aim is to make it easier for companies to successfully finance their market entry and growth phase.

Process flow

Applications for the INVEST grant are submitted online using the forms provided.


1st Company application:

  • Complete the form online and submit the application.
  • Then print out the application form and sign it. Send it to BAFA by post.
  • BAFA will issue an eligibility decision based on the complete application and supporting documents. If individual requirements of the guidelines are not met or if supporting documents are missing, you will receive a rejection.

2nd application by the investor (only after the company has submitted the application):

  • Complete the form online and submit the application.
  • Then print out the application form and sign it. Then send it to BAFA by post.
  • BAFA will issue an approval notice on the basis of the complete application and the supporting documents. If individual requirements of the directive are not met or if supporting documents are missing, you will receive a rejection.

3. call for payment by the investor (after receipt of the investment):

  • Complete the "call for payment" form online and upload the documents required in the notice of approval for the call for payment. Submit the entire form online.
  • Once the documents you have submitted have been checked, the grant will be transferred to the account you specified in the application, provided that all the requirements specified in the guidelines have been met.

4. verification of compliance with the three-year minimum holding period:

  • Upon request by BAFA, applicants must provide evidence of compliance with the minimum holding period requirements on an annual basis.

5 Application for an exit grant:

  • Complete the form online and submit the application.
  • Then print out the confirmation of the truthful information and sign it. Then submit the confirmation to BAFA as a scan in the upload area.
  • On the basis of the complete application and the supporting documents, BAFA will issue a notice of approval and, after the sale has been entered in the commercial register, initiate payment to the investor. If individual requirements of the guidelines are not met or if supporting documents are missing, you will receive a rejection.

Requirements

There are no prerequisites.

Which documents are required?

Company application:

  • Extract from the commercial register
  • If applicable, a description of the company's activities

Investor application:

  • No further documents for applications from natural persons
  • Extract from the commercial register and list of shareholders for applications from investment companies

Investor payment request

  • Electronic form "Call for payment"
  • Account statement from the investor confirming the transfer of the investment amount
  • Written confirmation from the company that the payment has been received
  • Copy of the notarized new partnership agreement/notarized new articles of association
  • Copy of the capital increase resolution including takeover declaration (in the case of a GmbH) or subscription certificate (in the case of a stock corporation)
  • Copy of the loan agreement in the case of an acquisition of shares via a convertible loan
  • Copy of the participation agreement (shareholder agreement/shareholder agreement)

Application for an exit subsidy:

  • Account statement from the investor confirming receipt of the purchase price
  • Sales contract

What are the fees?

There are no costs for the applicants.

What deadlines do I have to pay attention to?

  • Applications from companies and investors must be submitted online to BAFA before the measure is started (e.g. payment of the investment sum, signing of the contract), otherwise no funding can be granted.
  • Notifications of eligibility from companies are valid for 12 months. Investors must have submitted their applications within this period. It is not possible to extend the period of validity of the notifications. However, companies can submit a new application for eligibility.
  • Grant notifications from investors are generally valid for 3 months. Within this period, you must acquire the shares (investment) and provide BAFA with evidence of the implementation of this investment, including payment of the full issue price of the shares to the company. In the case of investments by means of convertible loans or the agreement of milestones, the notifications have a validity period of 24 months. It is not possible to extend the respective period stated in the notification.
  • Applications for the exit grant must be submitted to BAFA no later than 3 months after the sale (date of contract signing).

Processing duration

  1. Company application: approx. 2-6 weeks
  2. Investor application: approx. 4-6 weeks
  3. Investor call for payment: approx. 3-6 months
  4. Exit grant application: approx. 3 months

Legal basis

Appeal

  • Objection
  • Action before the administrative court

Applications / forms

Author

Forwarding service: Deep link to the original portal

The text was automatically translated based on the German content.

Technically approved by

Federal Ministry for Economic Affairs and Energy (BMWi)
Division VII C1

Professionally released on

11.08.2021

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