In the early stages of launching a startup, securing funding can be one of the biggest challenges. While many entrepreneurs turn to investors, business angels, or private capital, there’s a better, often overlooked option: grants.
Grants are essentially free funding provided by government programs, institutions, and foundations to support innovation and entrepreneurship. Unlike investors or loans, grants don’t require repayment or give up equity, making them one of the most attractive funding options for early-stage startups. Before giving away ownership or taking on debt, consider applying for grants first.
When to Apply for Grants Based on Your Startup’s Stage
Timing is crucial when applying for grants. Here’s a quick guide on which grants to apply for depending on where your startup is in its journey:
- Pre-Seed Stage: Idea and Concept Development
At this stage, you’re still developing your idea or prototype. Grants can help with market research and early-stage planning.
What to apply for:
- EXIST Business Start-up Grant: Supports innovative ideas from universities or research institutions, helping turn concepts into businesses with funding for market research and early development.
- Hessen Ideen: A six-month scholarship to support you while working on your startup idea in parallel with your studies or after graduation. Check the status of the scholarship in July 2025, including any updates on the new funding period if it has been extended.
- Hessian AI: A six-month grant to help founders develop their ideas in the Artificial Intelligence space.
- Seed Stage: Product Development
Now, you’re refining your product and testing the market. Grants at this stage can support R&D, prototyping, and testing.
What to apply for:
- Push! Hessen: Ideal for early-stage startups in Hessen, particularly those with innovative, sustainable business models in the development phase, seeking financial support to refine their ideas, build prototypes, and enter the market. Applications are open now. Apply before 7 April 2025.
- Distr@l: Supports early-stage startups in the digital sector, helping to develop innovative digital solutions and technologies. Be specific about which line of Distr@l you are applying to.
- Early-Stage: Launch and Market Fit
Your product is on the market, and you’re starting to attract customers. Grants here help with scaling, customer acquisition, and marketing.
What to apply for:
- EXIST-Forschungstransfer: This is A good option if your project is based on research results and is focused on moving toward market fit. The EXIST Forschungstransfer program can support the process of commercializing innovative research into viable, market-ready products.
- Lean AI Startup Funding: The program offers €30,000 for material expenses over six months. This funding is designed to help quickly test and validate AI ideas, facilitating their transformation into business cases.
- Frankfurt Start-up Fund by FS Impact Finance: Provides credit guarantees and connects start-ups with cooperating local banks, helping young companies access capital (alternative to grants).
- Growth Stage Expansion and Scaling
Your startup is now established, and you’re looking to expand. At this stage, you need grants, hubs and capital that support large-scale growth.
What to apply for:
- EIC Accelerator: If you meet the TRL (Technology Readiness Level) 6-8 and are looking for substantial funding, ready to create new markets and potentially disrupt existing ones.
- GermanAccelerator: Assists startups in expanding into international markets by providing access to global markets, expert mentorship, and valuable industry connections.
- High-Tech Gründerfonds (HTGF): Germany’s largest provider of venture capital for early-stage startups, focusing on high-tech sectors. It offers seed financing to help startups move from the prototyping phase to market launch, typically investing around €600,000 in the seed stage and up to €3 million in later rounds.
- KfW StartGeld (ERP-Gründerkredit): This program supports startups in the scaling stage with favorable financing conditions. It offers financing for growth, including investments in equipment, software, and working capital.
Things to Consider When Applying for Grants: Your Checklist of Criteria
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Legal Entity: Is a registered company required (e.g., GmbH, UG)? |
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Female Founders: Are there grants for female-led teams (e.g., HessenIdeen, EXIST-Women)? |
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Founder Type: Does the grant prefer solo founders or teams? |
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Industry: Is the grant specific to your industry (e.g., tech, sustainability)? |
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Stage: Is the grant for early-stage or mature startups? |
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Innovation: Does the grant focus on R&D or innovation? |
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Scope: Is the grant regional or national? |
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Co-Funding: Does the grant require matching funds? |
Access the Full List of Grants Now!
There are more grant options available for you! We’ve compiled a full list of grants tailored to early-stage startups.
LINK
Click the link below to explore all the details and eligibility requirements. If you’re interested, we can introduce you directly to the relevant institutions to make the application process easier.
Reach out— The FS Entrepreneurship Centre Team is here to help! Email directly at k.savina@fs.de
