The Federal Ministry of Economics in Germany published at short notice and apparently without
warning: “A new investment funding guideline will come into force on March 6, 2024. The amount
of the acquisition subsidy will then be 15 percent (instead of the previous 25 percent) of the
investment amount.” And yet the change may have a significant impact on the German startup
ecosystem.
For business angels, who are a mainstay of the startup scene, it makes investments less attractive.
Since angel investors typically support young companies in particularly early business phases,
they carry increased risk with their capital investment. The acquisition subsidy is therefore included
in the calculation because it also improves the return on investment.
The ministry cites the reason to the Business Angels Network Germany (BAND) that the funds
budgeted for Invest are unlikely to be sufficient for all the applications for venture capital grants that
are still expected. The reduction is not temporary but applies to the entire funding period until the
end of 2026. At the same time, new approvals for the investment subsidy, which were suspended
due to the provisional budget management, will be resumed.
https://www.breakinglatest.news/business/startups-investment-subsidies-for-business-angels-significantly-reduced/
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