Berlin has always been a hotspot for innovative founders and startups. With a lively start-up scene and numerous support offers, the German capital offers ideal conditions for young companies who want to get started. A central aspect of this funding landscape is the Pro FIT Berlin program, which makes a significant contribution to ensuring that innovative ideas and projects not only remain theory, but are also successfully implemented. In this article, we take a detailed look at the Pro FIT Berlin funding program and explain how startups can benefit from it.
What is Pro FIT Berlin?
Pro FIT Berlin stands for “Program for the Promotion of Research, Innovations and Technologies” and is a funding program specifically tailored to highly innovative projects with a strong research character. Important: The projects must involve significant technical risks and in any case exceed the current state of the art. If these strict criteria are met, Pro FIT is a great opportunity to leverage your own capital and thus make your research and development projects financially feasible and enable the development of new products, processes or services until they are ready for the market. The program also supports the subsequent market launch.
objective
The main goal of Pro FIT Berlin is to strengthen the innovative and competitiveness of Berlin startups and SMEs. This is achieved by reducing financial hurdles in highly innovative and therefore risky and capital-intensive projects. This is aimed in particular at strengthening the economic exploitation of research and development results and thus the ability to innovate.
Funding rate and grants
Pro FIT Berlin is characterized by very attractive funding rates and high volumes. Startups can expect a funding rate of up to 70% for research spending and up to 80% of project spending in the area of development and market launch, which means that a significant portion of the required financial resources will be covered by the program. More importantly, research funding is provided as grants that do not have to be repaid. Development and market launch is a discounted loan with an 8-year term and start of repayment after the end of the project.
Project phases and maximum grants
The program covers various phases of an innovation project:
- Industrial research: In this phase, Pro FIT Berlin supports industrial and therefore market-related research in order to develop new technologies. Ideally, this is based on basic scientific research.
- Experimental development: This involves the development and optimization of prototypes and pilot systems until they are ready for the market.
- Production set-up and market launch: In the final phase, startups can receive funding to prepare production and launch their innovations on the market. This includes, for example, the development of market launch concepts or marketing campaigns as well as participation in trade fairs and initial sales activities.
The amount of funding depends on the size and structure of the project. This allows maximum grants of up to 400,000 euros and up to 1 million euros in promotional loans per project.
Application process and criteria
The application process is quite complex and time-consuming. After the application, including very detailed project structuring, calculation and numerous forms, has been prepared, the official submission takes place. The project description is then sent to two external experts for evaluation. The commercial audit is only carried out if the experts have a positive vote and finally approval in a positive case. As soon as the contracts have been signed, the first so-called call for funds can take place. The first money actually only flows after about a year. Short-term liquidity bottlenecks cannot therefore be closed.
criteria
In order to receive funding from Pro FIT Berlin, startups must meet certain criteria:
- The project must include clear innovations.
- It must significantly exceed the current state of the art.
- Research activities must be necessary for product development.
- Ideally, these research activities are based on initial basic research on the topic.
- It must have a strong unique selling point that sets it apart from competitors.
- The company must be based in Berlin or have a permanent establishment there.
application process
The application process is multi-stage and requires a very detailed presentation of the project, including a detailed planned project calculation. Startups must therefore precisely structure their innovation projects, precisely differentiate research and development activities from one another and prove that they have the technical and economic expertise to successfully implement the project.
Support from Dimler&Karcher
Working with Dimler&Karcher can be invaluable for startups, as applying for funding is complex and time-consuming. Dimler&Karcher offers comprehensive advice and support in submitting applications, which not only increases the chances of obtaining approval, but also significantly reduces the administrative burden for the start-up. In addition, Dimler&Karcher can also assist with subsequent retrieval of funds, which are also quite complex with this program.
What's new and outlook
The current ProFit Berlin policy expires in December 2023. However, a new directive is expected in the first or second quarter of 2024, which will continue the program. This is good news for all startups in Berlin that are planning to embark on innovative projects.
conclusion
The Pro FIT Berlin funding program is a decisive factor for startups and innovative companies to successfully carry out their research and development projects. With a funding rate of up to 80% and the prospect of non-repayable subsidies, it offers a solid financial basis. For startups that are faced with the challenge of finding their way through the jungle of funding, the expertise of Dimler&Karcher is a real blessing. Through professional advice and support, the startup can concentrate on the essentials: innovation.
A partnership with Dimler&Karcher can therefore make the decisive difference by facilitating access to funding and maximizing the project's chances of success. Startups in Berlin should not miss this opportunity and prepare themselves now for the continuation of the program next year.
