Pro FIT – Project Financing: A Guide to Funding Research and Development in Germany

If you’re an entrepreneur or researcher looking for funding, Pro FIT is the perfect point of contact for you. The Berlin startup funding initiative provides grants and loans for entrepreneurs and researchers in all phases of the innovation process. With its help, your idea can become reality!

If you’d rather not put together your business plan and numbers alone, we support you in Strategy Consulting.

Who is our Pro FIT Guide intended for?

Pro FIT project funding is technology-oriented project funding that covers the entire innovation process. For non-technical innovations, Berlin offers the ProNTI programme.

Funded project phases include

• Research
• Development
• Market preparation and
• Market launch

Pro FIT project funding can be requested individually or in partnership with other companies or research institutions. For research projects with partners from several countries, there is the European Eurostars programme.

The following institutions based in Berlin are eligible for funding:

• Small and medium-sized enterprises (SMEs) alone or in partnership with other companies or research institutions
• Large enterprises only in partnership with SMEs and research institutions
• Research institutions only in partnership with at least one enterprise

How high is the financing?

The amount of funding depends on the project volume. In principle, IBB can provide up to EUR 400,000 in non-repayable grants and up to EUR 1 million in low-interest loans under the Pro FIT Project Funding Berlin program.

The project volume is determined by the project plan outlined by the SME, which details the individual work packages with the assignment of cost positions. All work packages and cost positions are critically reviewed by experts for their content and scope before approval.

For the number of possible funding awards, the project must have a research component. Expenses for activities that are classified as experimental development are funded as loans.

Industrial Research Phase:

• 80% grant (incl. SME and association bonuses)

Experimental Development Phase:

• 40% grant for research institutions in consortia
• 25% grant for large enterprises in consortia
• 80% max. loan for SMEs

Production Setup, Market Preparation, and Market Launch Phase:

• max. 80% loan for SMEs

What can the funding be used for?

Only project-related costs are eligible for funding.

Specifically, these can include:

• Personnel costs
• External services
• Material costs
• Applications for industrial property rights
• Expenses for market preparation and market launch

What does the application process look like?

Financing is provided through the Pro FIT Office in Berlin. To qualify for financing, three steps are required:

In the first stage, the planned project is presented in a “project application,” which clearly presents information about the company as well as the technical and economic implementation. The project proposal is then reviewed and evaluated by two experts.

If the vote is positive, the overall project funding is determined and the application is recommended.

Based on joint meetings between the applying company and the technical and economic experts, the “official application” takes place, where the original project proposal is submitted in revised form (as a result of expert meetings) as a project application to IBB.

After submission of formal application documents, the second stage of the application process begins. The company can start the project at its own risk. After review and clarification of further financial and economic funding requirements, a funding committee decides on the final allocation of funding.

What documents do I need for the application?

Relevant for assessing funding eligibility (to be submitted in step 2) are:

• Detailed work, time, cost, and financing plan (Pro FIT Financial Planner)
• Project description (if necessary, to be created jointly by consortium partners)
• Information about the company or research institution
• Information about the project
• Structure of the work plan
• Information on economic exploitation
• Amortization calculation (only for companies)
• Draft articles of association with list of shareholders (incl. information on shareholdings)
• SME self-disclosure form
• Copy of the application for registration
• If applicable, draft cooperation agreement with network partner(s)
• If applicable, explanations on other granted or applied for funding

What else is important?

Pro FIT project funding requires that the company is able to contribute approximately 30% of the project volume from its own resources. Furthermore, it must be economically stable (i.e., it must not be in insolvency proceedings and its liquidity must be assured over a certain period). Loans received in the event of Pro FIT funding are provided as de minimis aid. This may affect the interest rate. Further relevant questions may arise in the area of exemptions or connections with affiliated companies.

Bonus tip: As a rule, it is advisable to seek the support of an experienced consultant in these cases and to rule out possible knock-out criteria beforehand.

Your next steps

Pro FIT project financing is Germany’s first funding initiative that provides support to entrepreneurs and researchers working on innovative projects. Do you need help with your next big idea? Get in touch with us! We’re happy to offer you a free consultation so we can understand what you need and how we can help you.