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.
INVEST is a German government program that provides funding and support for innovative startups and young companies. While it primarily focuses on German businesses, some aspects could potentially benefit the European Housing Cooperative (EHC) initiative: The INVEST grant program offers acquisition grants to private investors who invest in innovative startups. If EHC establishes a legal entity in Germany, it could potentially attract investors who would be eligible for these grants, providing indirect financial support. INVEST also offers an exit grant to investors, which could make investing in EHC more attractive to German investors looking at pan-European housing initiatives. While direct funding from INVEST to EHC may be limited due to its focus on German companies, the program could serve as a model for developing similar initiatives at the EU level to support innovative housing solutions across Europe. EHC could potentially partner with German housing cooperatives or startups that have received INVEST funding to expand its network and expertise. Companies like Gewobag in Berlin or Holidu, a vacation rental platform, have benefited from INVEST in the past. Overall, while INVEST may not directly fund EHC, its model and network could provide valuable insights and potential partnerships as EHC develops its pan-European cooperative housing initiative.