Innovative business ideas and entrepreneurial courage are omnipresent in Berlin's dynamic start-up scene. But building a successful business requires more than just a brilliant idea—it takes capital, resources, and support. This is exactly where the GründungsBonus funding program comes in, which specifically aims to provide startups and founders in the capital with start-up assistance, for example to create a first prototype and thus increase the chances of a financing round from business angels or VCs or simply extend the runway as part of bootstrapping. In this blog article, we look at the program, explain the requirements and give valuable tips on what is important when applying.
What is the start-up bonus?
The GründungsBonus is a funding program in Berlin that was developed specifically to financially support young companies in their early start-up phase — the first 12 months after signing the articles of association. These are subsidies that do not have to be repaid, which is of course a decisive advantage for starting a business. At 50%, the funding rate is very attractive and can significantly reduce financial pressure in the first two financial years.
Who is eligible to apply?
To qualify for the Start-Up Bonus, you must meet a few criteria. Your startup must:
- be based in Berlin,
- the company must not be older than 12 months
- demonstrate a technological, digital, creative or sustainable business model,
- have discernible market and growth potential.
Which expenditure is supported?
The Startup Bonus covers a wide range of expenses that are relevant to starting and growing your startup. This includes:
- material and investment costs,
- operating expenses such as rent, marketing or communication,
- personnel costs (including founder salaries), which can account for up to 50% of the subsidy,
- Costs for external services such as freelancers or IT service providers.
How much is the funding?
The funding program provides that you can receive up to 50% of your eligible costs as a subsidy, but a maximum of €50,000 in a total cost of €100,000. This sum represents significant financial relief for young companies and can be decisive for the implementation of your project. Doubling the invested capital is of course just as interesting for investors as business angels, who, through this program, can immediately double the start-up's capitalization, extend the runway and thus massively increase the chances of success without further diluting the shares of the founders or investors. In addition, female founders can apply for a further €10,000 for mostly women-led startups as part of the founder bonus.
Application process and deadlines
Applying for the Start-Up Bonus is a multi-stage process that requires careful planning and preparation. The steps required include:
- Preparation of a high-quality business plan adapted to the requirements of the funding program, including a financial plan (approx. 30 pages).
- Fill out the numerous forms and have other necessary documents ready.
- Submission of the application: The application is submitted online and must be submitted before the start of the project. In addition, the original signed application form must be sent to the development bank.
- Proof of total funding: You must prove that the total financing of your project has been secured. Keep in mind that subsidies always follow the reimbursement principle, i.e. you must first spend money and then prove the invoices and payments. Only then will 50% of the actually eligible invoice amounts be transferred back to your account after a detailed review by the promotional bank. You must therefore pre-finance your expenses. Take this into account in the liquidity plan.
- The final commitment can take up to six months. However, the costs are eligible for funding immediately after submission.
Please note that the approval is not expected until next year and plan your financing accordingly.
Tips for a successful application
- Follow the program guidelines carefully and ensure that all documents are submitted in full and on time.
- Be precise and realistic when presenting your business model and financial planning. You don't need a very optimistic VC financial plan here, but one for a conservative (funding) bank.
- Pay attention to whether you are eligible for funding at all. It is particularly annoying when you take on the enormous amount of application work even though you are not suitable for it at all. A preliminary assessment is therefore definitely useful.
- It is just as unfavorable if actually suitable startups are rejected because formal errors were made in the application. Therefore, pay really meticulous attention to the requirements in the Directive.
Added value of working with Dimler&Karcher
Working with an experienced management consultancy such as Dimler&Karcher can be decisive for navigating the complex requirements of funding programs. Our team offers you:
- comprehensive advice on public funding programs,
- Support in structuring your project within the framework of funding programs,
- increasing your chances of getting a permit and
- Saving time when submitting an application through detailed knowledge of the requirements.
conclusion
The GründungsBonus offers an excellent opportunity for startups in Berlin to receive financial support in the critical initial phase. With the right information and strategic preparation, you can significantly increase the chances of a successful approval. Take advantage of the support of an experienced partner such as Dimler&Karcher, who is familiar with such funding applications. Juxtapose the consulting costs with the time it would take to get even closer to the funding topic and also the significantly higher chances of success if you receive professional support.
