Company reasons: Funding for founders

No moss going - the pithy motto applies to some entrepreneurs with a lack of capital. The start-up financing of one of the most important, but also the hardest steps on the way to becoming self-employed. If you want to start your own company, you should of course first try to get as far as possible with your own resources. But often only small steps are possible. Fortunately, there are still numerous support programs and sources of money in Germany that founders and start-ups can tap into. We introduce you to the most important funding for founders and explain what you should be aware of with the respective donors ...

Company reasons: Funding for founders

Contents: That's what you'll find in this article

Funding for founders: Inform yourself thoroughly
Good financing situation for companies
Funding for founders: State funding programs
Which insurance does a founder need?
Company reasons: Founder financing through venture capital
Company reasons: Business Angel as a start-up helper
Company reasons: equity plus funding
How do I promote my Start Up with 100 Euro?
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Funding for founders: Inform yourself thoroughly
Before founders and startups take part in completing the sometimes quite extensive application forms and begin the walk to authorities and foundations, they should read in advance and inform . Of course, we want to give you the necessary clues here , but it would go beyond the scope of mapping any existing information.

Instead, we summarize the most important sources of information and thus offer you an overview of all relevant sources. Please note, however, that this article can not replace legal advice or start-up coaching.

As a start , a visit to the relevant information offered by authorities and other institutions, the most important are:

Funding database - Current overview of federal funding programs.
Founding types - overview and information about the different forms and types of founding.
Founding workshop - information, tools and personal advice for self-employment.
Tips for founders - An overview of the most important aspects of starting a business in different industries.
In principle, start-up coaching is recommended before applying for start-up support in order to optimally illuminate and use all options. For example, the Federal Office of Economics supports management consulting services ( promoting entrepreneurial know-how ).

Good financing situation for companies
Extra tip iconThe financial situation for companies has never been as good as current, according to a KfW survey of 3100 companies. The low interest rates, the strong economy and the high level of self-financing power in particular are helping many companies to assess the financing climate positively.

However, one downside remains: small and young companies in particular complain more often about difficulties in accessing finance. According to the study, the reasons are ...

the increased need for information on the part of credit institutions .
the high demands on equity.
the security concerns of banks in small and young companies.
Funding for founders: State funding programs
From the state side, there are numerous funding opportunities for start-up financing for those who want to start a business. For the application and the detailed requirements, we provide here the links to the corresponding websites , where you can obtain further information and then also be active.

Nearly 20 percent of all founders start a job out of unemployment and become self-employed. This foundation can be supported by the so-called start - up grant. However, this is a discretionary power for which there is no legal claim .

The start-up grant is paid in two phases :

For six months , a subsidy amounting to the last unemployment benefit received and 300 euros for social security will be granted.
Thereafter, another 300 euros per month can be granted for social security for another nine months if the founder supports intensive business activities and full-time entrepreneurial activities.
In addition, there are numerous support programs at EU level, throughout Germany and from the various federal states. There are also special programs for women . Classic funding for founders, for example, are the offers of KfW . The grant from KfW can be applied for within five years of its founding.

Among founders, the KFW start-up loan is also popular and well-known . Here the founder different models are available .

Applications are made through the company's own bank, which supports, for example, investments such as the acquisition of equipment, machines, computers, the acquisition of land, buildings, furnishings or company vehicles.

An overview of all important funding programs can also be obtained from the Federal Ministry for Economic Affairs and Energy .

Which insurance does a founder need?
Extra tip iconEvery founder and self-employed must secure themselves. Duty for all founders is the health insurance. You can choose between statutory and private health insurance. Here you should compare exactly the tariffs. Also think about it later, because some insurance can also rise in price.

Other insurance must be checked by each founder for himself. Every industry has different operational risks. You should find out which insurance makes sense for your industry . For example:

Occupational disability insurance (BU)
Daily benefits
accident insurance
pension Insurance
unemployment insurance
Public liability insurance
Property Damage Liability Insurance
Business contents insurance
Legal expenses insurance

Company reasons: Founder financing through venture capital
In addition to state subsidy programs and numerous bank loans, start -up financing can also be provided through venture capital - so-called venture capital . However, the search for such an investor is not easy. First, you have to convince with an innovative business model , a large market with low competition, or the prospect of rapid growth through a scalable business model. After all, such investors do not want to buy companies, but want to build up quickly, and then redeem their capital at the so-called exit high-interest - classic in an initial public offering of the company.

Then-eighth investors graphics
However, as a founder you should look for a few selection criteria when looking for suitable venture capital investors (VC) :

Does the VC have a relevant network of partners, customers in your industry?
Does the VC have enough capital for start-up financing?
How does the VC react in bad times ?
Do you and the VC have similar ideas about the exit and its timing?
The name "risk" or "venture capital" already suggests it: Not only the investor carries a risk here - so do the so funded founders. A completely free work is only rarely possible after such a round of financing. You now have co-shareholders with more shares than you - so they talk accordingly in every decision.

On the other hand, a small piece of a big cake can be more lucrative than a big piece of a cupcake.

So, if - after careful consideration - you decide to use venture capital, the Federal Association of German Lenders offers an overview of potential lenders.

Company reasons: Business Angel as a start-up helper
Funding for entrepreneurs does not have to be purely financial. A nice example of this are the so-called Business Angel . This is usually a private financial investor (but sometimes also an investor network), who supports the founders with capital, know-how and contacts - so-called smart capital .

Because the business angel has both industry knowledge and experience, he often acts internally as a coach and mentor for the young entrepreneurs. In return, of course, he also receives shares in the company.

Participation process business angel graphics
Business angels are also primarily interested in business ideas and markets that promise a good growth outlook and high value growth . You will find special pleasure in products or services that are better than the market or difficult to imitate.

Through their early entry into the company, they hope that their expertise will have a positive influence on the company's development and thus achieve a rapid increase in value. In the long term, they also want to sell their shares on average after four to seven years - with profit of course - either to the founders themselves or to a new strategic investor. The amount of investment of a business angel in Germany is between 20,000 and 200,000 euros . The average, however, is around 100,000 euros or less.

You can often get in contact with business angels at relevant events such as founding family tables, thematically fitting trade fairs or meanwhile also some barcamps .

If you have contacted several business angels and are showing this interest in your business idea, you should consider the following criteria :

What is the investment amount ?
What reputation does the business angel possess?
How current is his industry knowledge ?
How many contacts in your target industry does Business Angel have?
What quality do the contacts have?
What kind of support does the angel offer - except money?
What is the impact of the Business Angel on your decisions?
How many shares does he want for his investment - does he value the company fairly?

Company reasons: equity plus funding
FoerdermittelGr├╝ender mix-growth phases
In the end, a solid start-up financing usually consists of a mix of equity, government grants, loans and possibly the financial and professional support of a business angel and / or venture capital. Of course, you have to weigh yourself and on a case-by-case basis what proportion of the different forms of financing you should have for start-up financing.

It is crucial that you approach the start-up financing in good time to remain liquid and at the same time not jeopardize the steady growth of the young company.

How do I promote my Start Up with 100 Euro?
Extra tip iconNot every founder quickly collects millions of dollars from investors. Some startups are financially sewn hard on edge and have to turn every penny. Problem: Somehow, your idea still needs to be brought forward and made public. Best in original, funny, interesting way. For example:

Spend your coffee. You give a tasty (!) Coffee to 20 strangers and ask them to test your product. The likelihood of your guinea pigs telling about this episode among friends is around 98 percent.
Eventjacking operate. The term roughly states that you use an event or event that has nothing at all to do with your interests. For example, you promote your groundbreaking sports score app just when the city center is filled with football fans because of the Bundesliga match.
Test specimens sent Send test specimens (or trial access) of your product to selected bloggers. It is important to correctly identify the blogging multipliers in your industry beforehand. Request that you subject your product to a real test and publicly review it. However, there is a risk of negative reviews.

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