Funding

Startup funding and grants: the overview

General information on the law in Germany (as of July 2026), not legal advice. Other countries regulate this differently.

Public startup funding comes in four pots: grants (money you keep), subsidised loans (cheap debt), coaching support (subsidised advice) and competitions/scholarships. The most important rule across all of them: the application has to be filed before you officially start. Afterwards, most doors are closed.

Almost every funding programme asks for a business plan: the nine chapters and what belongs in each →

The start date those programmes measure against is one you set yourself: registering a business, the order and the deadlines →

Grants: money you do not pay back

The most attractive form: the state covers part of your costs or your living expenses in the starting phase. In return, the hurdles are highest and the conditions strictest. The application almost always has to be filed before you start.

Examples: in Germany the founder subsidy of the employment agency and the EXIST scholarship; in the US, SBA-backed grant programmes; in the UK, Innovate UK grants. Most countries run comparable schemes.

Subsidised loans: cheap debt capital

Development banks lend at conditions no commercial bank offers: lower interest, repayment-free initial years, partial liability release. Usually applied for via your house bank, not directly.

Examples: KfW start-up loans in Germany, SBA 7(a) loans in the US, British Business Bank Start Up Loans in the UK, plus regional development institutes.

Coaching and consulting support

Many states subsidise professional advice before and after founding, often 50 to 80 percent of the consulting costs. Underrated, but valuable especially for first-time founders.

Examples: BAFA consulting grants in Germany, free first consultations at chambers of commerce, SCORE mentoring in the US.

Competitions and scholarships

Startup competitions bring prize money, visibility and contacts, and the application forces you to articulate your idea cleanly. Scholarships cover living costs without giving up equity.

Examples: regional and university startup competitions, industry awards, founder scholarships like EXIST (Germany).

Where to knock, by country

The four pots above exist in almost every country. Only the names and institutions differ. The most important entry points:

United States

SBA-backed loans (7(a), microloans), SBIR/STTR grants for R&D-heavy ventures, plus state-level economic development programmes.

First stops: sba.gov and free SCORE mentoring.

United Kingdom

Start Up Loans via the British Business Bank, Innovate UK grants for innovative ventures, regional growth hubs.

First stops: british-business-bank.co.uk and your local growth hub.

European Union

Each member state runs its own development bank and founder grants; EU-level options include EIC funding for deep-tech and Erasmus for Young Entrepreneurs.

First stop: your national founders' portal or development bank.

Important: programmes, amounts and conditions change regularly and differ by region. Treat every figure here as a snapshot and verify with the programme provider. This article is orientation, not legal or tax advice.

Frequently asked questions

When do I need to apply for funding?

Almost always before starting the venture or registering the business. If you found first and apply later, many programmes automatically exclude you. That is why the funding check belongs at the start of your planning, not the end.

Can I get funding for a side business?

Partially. Many programmes require founding full-time. But consulting grants, microloans and regional programmes are often open to part-time founders too. It pays to look closely.

How do I find out which programmes fit MY case?

Most countries run public funding databases (in Germany: foerderdatenbank.de), and chambers of commerce offer free first consultations. Or add the funding check to an Ideontics assessment. We research matching programmes specifically for your idea.

Is funding free money with no strings attached?

No. Grants come with conditions (documentation, reports, earmarking), loans must be repaid, and applications cost time. Rule of thumb: funding accelerates a sound idea. It does not turn a weak idea into a strong one.