"INVEST – Grant for Venture Capital" has been extended by another four years – substantial increase in the purchasing grant from 20% to 25%

The funding guideline for the INVEST programme has been extended by another four years until 31 December 2026 with effect from 6 February 2023. This means that investments by business angels in young, innovative companies continue to benefit from funding. Since May 2013, the Federal Ministry for Economic Affairs and Climate Action has provided tax-free grants to private persons for their investments in startups under the "INVEST – Grant for Venture Capital" programme.

Dr Anna Christmann, Commissioner of the Federal Ministry for Economic Affairs and Climate Action for the Digital Industry and Startups, said: "Since the launch of the INVEST programme, venture capital totalling nearly €1.4 billion has been mobilised for young, innovative enterprises. We want to make further use of the leverage effects of the INVEST programme, which have been demonstrated in several studies, by continuing the programme and further improve the capital base of young, innovative companies by promoting private-sector investments."
The Economic Affairs Ministry has taken up the optimisation proposals which were made in last year’s evaluation and adapted the funding conditions in the new funding guideline to place a stronger focus on the mobilisation of virgin angels, i.e. business angels investing for the first time.

Dr Anna Christmann: "The evaluation has shown that virgin angels or business angels who invested only little before have responded strongly to a rise in grants under the INVEST programme. For this reason, we have substantially increased the purchasing grant for the first time in ten years from 20% to 25%. The introduction of an INVEST budget totalling €100,000 per natural person for purchasing grants and further adjustments regarding investment limits aim to make the market attractive especially for virgin angels so that they enter the market and remain there in the long term and thus lastingly boost activity on the business angels market due to the INVEST programme."

Some of the restrictions regarding INVEST funding conditions introduced on 1 March 2022 due to public budget restraints have been revoked. Convertible loans, for instance, will again be treated in the same way as direct investments, and the purchasing grant will amount to 25% in both cases. The minimum invested sum will again be reduced from €25,000 to €10,000. Follow-up investments, however, continue to be no longer eligible for funding under the INVEST programme as recommended in the evaluation.