Investment Grant for Business Angels ( INVEST Zuschuss für Wagniskapital )

Transcription

1 Investment Grant for Business Angels ( INVEST Zuschuss für Wagniskapital ) - current status - Hardy Isken Federal Office for Economic Affairs and Export Control (BAFA) Hightech Venture Days Dresden, October 5-8th, 2015

2 Agenda 1. Executive summary of the grant 2. Review of applications 3. Review of rejections 4. Tips on how to receive approvals 5. Positive results so far 2

3 1. INVEST Executive summary Grant of 20% of the Business Angels investment (issue price of shares, including agio) Direct investment, shareholder status Investment limits per investor: min. 10,000 (per company) max. 250,000 (per year) Per company: max. 1 m per year are eligible for grants Max. stake of 25% per investor Minimum holding period of 3 years 3

4 1.1 Requirements on company level Capital company (e.g. GmbH, AG, UG (haftungsbeschränkt) and all european equivalents young company (< 10 years) small company (< 50 employees, turnover/total assets < 10 m) branch or business premises in Germany (entry in the commercial register) 4

5 1.2 Innovative Sectors The following sectors are considered to be innovative and hence are eligible for grants Manufacture of technical textiles 20 Manufacture of chemicals and chemical products 21 Manufacture of basic pharmaceutical products and pharmaceutical preparations 22 Manufacture of rubber and plastic products 23 Manufacture of other non-metallic mineral products 25.6 Surface treatment, heating treatment 26 Manufacture of computer, electronic and optical products 27 Manufacture of electrical equipment 28 Manufacture of machinery and equipment 29 Manufacture of motor vehicles, trailers and semi-trailers 30 Manufacture of other transport equipment (without 30.1 Building of ships and boats ) 32.5 Manufacture of medical devices and materials 33 Repair and installation of machinery and equipment 58 Publishing activities 59 Motion picture, video and television programme production, sound recording and music publishing activities 60 Programming and broadcasting activities 61 Telecommunications 62 Computer programming, consultancy and related activities 63 Information service activities 71 Architectural and engineering activities; technical testing and analysis 72 Scientific research and development 73 Advertising and market research 74 Other professional, scientific and technical activities 90 Creative, arts and entertainment activities 5

6 1.3 Alternative proof of innovativeness - Alternative proof of innovativeness through patent Company or one of its shareholders is holding the patent Patent is not older than 15 years Patent in direct connection to company s business area - Alternative proof of innovativeness through received sponsorship Sponsorship under public law for a research and development project Sponsorship not older than two years 6

7 1.5 Requirements on investor level Natural person with main residence in EU No connection to company Has to have legal age Using a holding company (Business Angel company) Legal form GmbH (or european equivalent) Maximum of 4 shareholders One shareholder with a minimum of 50% stake Holding company s only purpose must be holding stakes of other companies 7

8 1.6 Application process Company s application Investor s application Approval Signing the contracts Application for grant pay-out Pay-out of the grant In red: Investors actions In blue: BAFA actions In black: Company s actions Handling time 1-2 weeks Handling time 1-2 weeks Handling time 6-8 weeks If the investor invests when founding the company, the company s application has to be sent in after the founding process. All approvals will be sent afterwards from BAFA.

9 1.6 Application process Responsibility: Federal Office for Economic Affairs and Export Control (BAFA) double-stage application process company applies for eligibility investor applies for grant approval Application via Wirtschaftsförderung INVEST Zuschuss für Wagniskapital - 9

10 2. Review of Applications Average investment sum: Euro Average equity stake: 5 % About 25% of all investor applications are from holding companies. 10

11 2.1 Sectors of young innovative companies 68% 18% 13% 1% Processing Trade Information and Communication Technical Services Other For example: Mechanical, Electrical, Medical, Engineering Web portal, Programming Biotech, Greentech, R&D 11

12 2.2 Young innovative companies by state 30% 25% 20% 15% 10% 5% 0% BY BE NW BW HE HH SN NI RP BB TH MV SH ST HB SL 12

13 2.3 Investors by state 30% 25% 20% 15% 10% 5% 0% BY NW HE BE BW HH NI RP BB SH TH ST SN MV SL HB 13

14 3. Review of rejections (companies) Rate of rejection about 12% Predominant reasons: Missing innovativeness (e.g. Trader or financial services) Legal form (e.g. partnership) 14

15 3.1 Review of rejections (investors) Rate of rejection about 13% Predominant reasons: Already related to the company (e.g. employee, shareholder) Plans to take a stake over 25% Legal form of holding company Premature investment (before filling an application) 15

16 4. Tips on how to receive approvals Read our correspondence carefully! Read what you sign carefully! Ask the BAFA! Use our hotline and service Ask a lawyer! Send complete applications! Respect deadlines! 16

17 5. Monthly approvals of investment rounds 17

18 5.1 Up-to-date figures ( ) Applications from companies: Approved company applications: Applications from investors: Approved investor applications: Volume of all investment rounds to date: about 105 Mio. Euro 18

19 Thank you very much for your attention. Contact: Federal Office for Economic Affairs and Export Control (BAFA) Division 416 Frankfurter Straße D Eschborn Phone: +49 (0) Fax: +49 (0)