How do I finance a foundation? Introduction

01.12.2020 | Financing & Promotion

Anyone who wants to start his own business, regardless of size, must first think carefully about how much money is needed for the initial phase, i.e. how much capital is required. This includes not only the investment costs and operating expenses for the initial period, but also your own living expenses. Usually it takes a certain time after the establishment, until the incomes are considerable, therefore one should calculate in such a way that the initial thirst distance can be overcome. Even if the start-up phase is financially secured, one must think afterwards in time about whether a follow-up financing becomes necessary.

In this article you will get an overview of the different types of financing. If you want to go deeper into the topic, you can read more articles about financing and funding.

Equity – Liabilities

The financing of a start-up usually consists of several sources. From own money, which is brought in and from foreign fund. A distinction is also made in accounting between equity capital and outside capital. The more equity is available, the better it is. As a result, lower debt has to be incurred and fewer financial obligations arise through repayments and interest repayments. The own decisions are also less dependent on external financiers. The higher the share of equity capital, the better the chances of obtaining loans. There is also “outside money”, for example from investment companies, but this is counted as equity. Grants also belong to the equity capital share. Loans, on the other hand, fall under borrowed capital.

Venture capital

One way to co-finance a start-up project is through investment companies. These companies become financially involved as partners at certain conditions and increase the share of equity capital. To what extent the partners are really involved as co-entrepreneurs varies. Business angels often support founders in the initial phase with a financial investment and their know-how. Venture capital companies invest primarily when they expect special growth opportunities and expect to be able to sell their shares at high profits after the end of the term. There are also public investment companies, which usually have no influence on the operative business. There is also the possibility to apply for public subsidies for the investments of private investors. Links

Loans and Development Banks

One way to co-finance a start-up project is through investment companies. These companies become financially involved as partners at certain conditions and increase the share of equity capital. To what extent the partners are really involved as co-entrepreneurs varies. Business angels often support founders in the initial phase with a financial investment and their know-how. Venture capital companies invest primarily when they expect special growth opportunities and expect to be able to sell their shares at high profits after the end of the term. There are also public investment companies, which usually have no influence on the operative business. There is also the possibility to apply for public subsidies for the investments of private investors. Links

Support Programs

Es gibt sehr viele unterschiedle Förderprogramme auf Landes-, Bundes- und EU-Ebene. Wir haben einen separaten Beitrag mit Informationen zum Thema Förderprogramme (LINK). Manche sind Zuschüsse oder Beteiligungen, die somit das Eigenkapital aufstocken. Andere werden als Kredite gewährt. Bedingungen, Dauer und Antragsfristen sollten verglichen werden, um das passende Programm zu finden und die Chance der Bewilligung zu steigern. Es gibt Programme für Zuschüsse oder Kredite von ein paar Tausend bis hin zu mehreren Millionen Euro. Die unterstützten Themen sind dabei sehr unterschiedlich, von der Förderung innovativer Technologien bis hin zu Kulturprogrammen. Für Hochschulabsolventen, Wissenschaftler und Studierende, die sich mit einer technologischen Geschäftsidee selbständig machen möchten, kommen häufig EXIST-Programme in Frage oder ERP-Digitalisierungs- und Innovationskredite. In einem separaten Beitrag findest Du eine Zusammenstellung unterschiedlicher Förderprogramme. (LINK)

Crowdfinancing

Crowdfunding is the process of presenting your project on the Internet on a crowdfunding platform and “collecting” money. A certain sum is set in advance and when this goal is reached, the campaign is complete – and only then is the money paid out. Usually there is also a fee for using the platform. There are different models. Donations can be collected without consideration. This is often used for social projects or by associations (donation based crowdfunding). With Reward based Crowdfunding the product itself can be used as payment after successful development, this can also be vouchers, tickets etc. Crowdlending involves the collection of credits, while crowd investing involves equity investments.

Links on the topic of financing

startUPwiki Financing of startUPs

GründerZeiten Nr.06: Existenzgründungsfinanzierung
GründerZeiten Nr. 28: Finanzierung und Wagniskapital

Industrie- und Handelskammer Schwarzwald-Baar-Heuberg
Wirtschaftsförderung Schwarzwald-Baar-Heuberg
Existenzgründungsportal des BMWi
Existenzgründer – Förderprogramme

Links Share Capital
Mikromezzaninfonds Deutschland
INVEST Zuschuss für Wagniskapital
Venture Capital High Tech Gründer Fonds
Mittelständische Beteiligungsgesellschaft
Black Forest Business Angels
Business Angels

Links Loans and Development banks
L-Bank
Mein Mikrokredit

Links Support Programs
startUPwiki Förderprogramme
Förderdatenbank – Bund, Länder, EU
EXIST Förderprogramme
Beratungsförderung
ERP-Kapital für Gründung
ERP-Gründerkredit Startgeld
ERP-Gründerkredit – Universell
Mein Mikrokredit
Mikrormezzaninfonds Deutschland
KfW-Unternehmerkredit
ERP-Digitalisierungs- und Innovationskredit
ERP-Mezzanine für Innovation
ERP-Beteiligungsprogramm
Gemeinschaftsaufgabe „Verbesserung der regionalen Wirtschaftsstruktur
Existenzgründungsportal des BMWi Förderprogramme

Links Crowdfunding
Crowdfinanzierung Existenzgründungsportal BMWi