INVEST

INVEST is a funding program administered by Germany's Federal Office for Economic Affairs and Export Control (BAFA) that aims to mobilize more private venture capital from business angels to support innovative startups. The program helps startups more easily find investors by providing incentives to private individuals who invest in young, innovative companies. INVEST offers a 20% acquisition grant to business angels who invest at least €10,000 in eligible startups. The maximum grant amount is €100,000 per investor per year. Additionally, investors can receive an exit grant to partially compensate for taxes on capital gains when selling shares. Startups must be less than 7 years old, have fewer than 50 employees, and less than €10 million in annual turnover to be eligible. The program has an annual budget of around €46 million. Since its launch in 2013, INVEST has supported over 7,000 investments totaling more than €1 billion in venture capital for startups. Recent beneficiaries include Personio, a HR software company, and Forto, a digital freight forwarder. By reducing investment risks for business angels, INVEST aims to improve access to early-stage financing for innovative startups in Germany and strengthen the country's venture capital ecosystem.