A banking funding opportunity for start-up in Germany
The creation of a start-up requires the use of banking funding opportunities through for instance mezzanine funding which consists of debt capital enabling high return in compensation for the high risk level of investment. The mezzanine capital allows companies to get even more leverage and thus finance larger transactions.
This kind of funding method is not common in Germany yet. That is why the “Mikromezzaninfond-Deutschland” (MDD) was created by the Federal Ministry for Economic Affairs and Energy (Bundesministerium für Wirtschaft und Energie) in 2013 in order to provide SME’s, start-ups and entrepreneurs an access to such funding opportunities. Partly financed by the European Social Fund (ESF), the MDD especially targets social and environment-friendly companies which are set up by woman, former job seekers or people with a migration background.
The application file can be submitted any time to the Mittelständischen Beteiligungsgesellschaft of the federal state where the investment is supposed to take place. A company can be financed with the amount of 50 000 Euro within 10 years. The loan should be paid back in 3 equal annual rates during the last 3 years.
Further information about this funding opportunity are available here