The "Forschungszulage" should be an essential component of every start- and scale-ups’ holistic fundraising strategy.
💵 Up to EUR 3.75m non-dilutive cash
📉 Cash payout for loss-making firms
🍀 Larger than 70% approval rate
⏱ Decision within 56 days
📅 Fund past, already started, and future projects
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The German grant program "Forschungszulage" is based on the “Forschungszulagengesetz”. The “Forschungszulage” is a tax relief program, allowing the reimbursement of R&D expenses for all companies subject to tax in Germany. The program was put in place to stimulate innovation and can be granted independent of company size, location or industry.
💵 Up to EUR 3.75m non-dilutive cash
With the FZul up to EUR 15m personnel costs can be accredited as fundable project volume. 25%/ up to EUR 3.75m of the accredited cost is refunded. Many VC-funded start- and scale-ups accumulate large personnel costs quickly. A 25% refund of these costs offer a great non-dilutive fundraising option for ventures.
📉 Cash payout for loss-making firms
The FZul is by definition a tax relief program. However, the law includes a special regulation granting a cash payout of the refunds, even if no corporate or income tax is paid. This applies to most start- and scale-ups, as in the starting and scaling phase start- and scale-ups often generate losses.
🍀 Larger than 70% approval rate
The “Forschungszulage” has a larger than 70% approval rate1. This is considerably higher compared to other funding programs such as the European Innovation Council (EIC) with a 7%2 approval rate. Start- and Scale-Ups have limited resources; programs with high approval rates are an ideal fit for ventures.
⏱ Decision within 56 days
The "Forschungszulage" distinguishes itself through its efficient processing timeframe, averaging just 56 calendar days, in contrast to the 8-9 months typically required for the EIC funding.3 Time is scarce among start- and scale-ups. The short processing time of the FZul makes it an ideal program for ventures.
📅 Fund past, already started, and future projects
The FZul funds R&D activities that have been completed, are currently in progress and have not yet started. Start- and scale-ups often start projects without long preparation times. The FZul allows for already started and even already finalized projects to be funded.