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Funding of Start-up Centers
Published on 09 July 2018
Germany
Hannover
This is the good practice's implementation level. It can be national, regional or local.
About this good practice
Lower Saxony wants to develop its territory by enhancing the success rates of technology orientated start-ups and their successful introduction and sustainable establishment at the market. This enhancement is made through the funding for setting up Start-up Centers across Lower Saxony.
The grant is addressed to establish new Start-up Centers and expansion of existing Start-up Centers. A maximum of 50% of the cost (max. 100.000 Euro p.a.) for the Start-up Center can be funded for max. two years.
Funding is available for any natural or legal person who will act as responsible body of the Start-up Center.
The grants can be used to:
- Finance the facilities of the Start-up Centers
- Personnel cost for staff members of the Start-up Center to intensively accompany and support start-up in seed and pre-seed phase as well as set-up of an individual coaching and mentoring process.
The selected Start-up Centers should focus on a specific sector or sector groups in line with the RIS 3 strategy and the regional strengths. Regional and sector-related actors have to be imbedded in the Start-up Centers approach and the regional start-up ecosystem.
The institution responsible for the grant is Investitions- und Foerderbank Niedersachsen - NBank.
The grant is addressed to establish new Start-up Centers and expansion of existing Start-up Centers. A maximum of 50% of the cost (max. 100.000 Euro p.a.) for the Start-up Center can be funded for max. two years.
Funding is available for any natural or legal person who will act as responsible body of the Start-up Center.
The grants can be used to:
- Finance the facilities of the Start-up Centers
- Personnel cost for staff members of the Start-up Center to intensively accompany and support start-up in seed and pre-seed phase as well as set-up of an individual coaching and mentoring process.
The selected Start-up Centers should focus on a specific sector or sector groups in line with the RIS 3 strategy and the regional strengths. Regional and sector-related actors have to be imbedded in the Start-up Centers approach and the regional start-up ecosystem.
The institution responsible for the grant is Investitions- und Foerderbank Niedersachsen - NBank.
Expert opinion
This simple and straightforward support scheme offered in Lower Saxony, Germany, provides grants to startup centres that support startup development and acceleration. The grant offers 50% funding of maximum 100,000 euros for two years and the funding can be used to cover personnel, consultant and office costs. In line with the local RIS3 strategy, the startup centres are expected to boost startup development in specific sectors that contribute the most to the local economy. The scheme is expected to boost the success rates of local technology-based startups. As also outlined in the practice itself, the grant turned out to be more popular than anticipated with final output indicators still to be evaluated. The experience definitely has replication potential in other contexts as well, as long as each region’s strengths and priority sectors are taken into account when designing the program.
Works at
Interreg Europe Policy Learning Platform
Resources needed
- Max. 100.000 EUR per year, per Start-up Center, which covers max. 50% of the eligible expenses.
- The grant can be provided for max two years.
Eligible expenses:
- Personnel cost (Management and own consultants of the Start-up Center)
- Cost for external consultants
- Office / room rental
- The grant can be provided for max two years.
Eligible expenses:
- Personnel cost (Management and own consultants of the Start-up Center)
- Cost for external consultants
- Office / room rental
Evidence of success
- Eight Start-up Centers had been selected for funding
- Max. time of acceleration per start-up: 6 months
- Min. three start-ups have to be accelerated per batch
- Min. twelve start-ups have to be accelerated during the 2 years per Start-up Center
Furthermore Start-up Centers must:
- be integrated in the local networks and support structure
- have a sectoral focus which is not yet covered by another funded Start-up Center
- Show a concept for the post funding period
- Max. time of acceleration per start-up: 6 months
- Min. three start-ups have to be accelerated per batch
- Min. twelve start-ups have to be accelerated during the 2 years per Start-up Center
Furthermore Start-up Centers must:
- be integrated in the local networks and support structure
- have a sectoral focus which is not yet covered by another funded Start-up Center
- Show a concept for the post funding period
Potential for learning or transfer
The programme may deliver figures based on experiences of an initial public funding for setting-up sectoral focussed accelerators and their transfer to a self-(re)financing structure.
With this analysis regions may receive information on establishing support structures by a small amount money in combination with an and limited time frame / budget allocation.
The sectoral approach of the start-up centers may be interesting for other European regions to learn about living start-up scenery in specific sectors.
With this analysis regions may receive information on establishing support structures by a small amount money in combination with an and limited time frame / budget allocation.
The sectoral approach of the start-up centers may be interesting for other European regions to learn about living start-up scenery in specific sectors.
Further information
Website
Good practice owner
You can contact the good practice owner below for more detailed information.
Organisation
State Development Bank of Lower Saxony
Germany
Hannover