VC Fund Creative Industries Berlin – Berlin Startup Funding

The VC Fund “Creative Industries Berlin” is a fund that invests in startups. The fund founder, IBB Bank, has invested many millions of euros in various startups. It continues to grow with its portfolio companies. One of the most exciting aspects of this VC fund is the fact that it goes beyond pure financing of these companies by offering mentoring programs for its members. In this blog post, we will discuss the benefits of support from Creative Industries Berlin and provide some information about what you should do before you apply for funding.

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What is the VC Fund Creative Industries Berlin?

With the VC Fund Creative Industries Berlin, IBB Ventures invests in the form of venture capital (equity capital) in startups from various creative industries, thereby strengthening their equity base.

IBB Ventures is the parent brand for the VC activities of IBB Beteiligungsgesellschaft. Creative Industries Berlin has a fund volume of 40 million euros. The fund is financed by the Investment Bank Berlin (IBB) and the European Fund for Regional Development (EFRD), managed by the State of Berlin. Since 1997, IBB Ventures has supported over 200 Berlin creative and technology companies in consortiums with partners with approximately 1.43 billion euros, of which IBB Ventures has invested 200 million euros as a lead, co-lead, or co-investor. Currently, approximately 70 startups are in the portfolio.

How does it work and what are the benefits?

IBB Ventures participates in financing through the Creative Industries Berlin Fund as a minority shareholder. Initial investments typically range between €250,000 and €1 million. In subsequent rounds, the engagement can be increased with existing and/or new investors, depending on capital requirements, to a total of up to €4 million.

The provision of equity participation through the VC Fund Creative Industries Berlin is contingent on the essential condition that other partners, such as venture capital companies, industrial enterprises, or business angels, participate at least equally to IBB Ventures.

The funding provides startups with an excellent opportunity to convince potential investors with confirmation from IBB Ventures, as additional capital is available for growth. Should additional capital be needed during the growth phase, well-capitalized partners are already on board, and valuable time can be saved in the search for new investment partners. VC financing can be combined with other support programs such as the founder’s bonus.

Who can apply for financing?

The VC Fund Creative Industries Berlin invests in companies that meet the following investment criteria:

• Innovative business models
• High scaling and value creation potential
• Belonging to the focus areas of the creative industries
• Companies with innovative unique selling propositions
• Founding and management teams with high personal and professional competence
• Companies that are still in the early stage; growth financing is provided only in subsequent rounds
• Good medium-term exit opportunities

The company should be majority-owned by active shareholders, have its headquarters in Berlin, meet EU criteria for small and medium-sized enterprises, and be operated as a capital company. Furthermore, the company must not meet the criteria of the Community guidelines for state aid for rescue and restructuring of companies in difficulty.

4 Tips for a Successful Application

IBB Ventures is very selective when choosing suitable startups.

1. Pitch Deck

You should be able to present your company and the investment opportunity in a convincing manner. What makes your startup so unique (e.g., promising technology; low costs)? In addition to the content and professional design of a pitch deck – whether created with Canva or PowerPoint – the pitch deck should be precise and unique. Templates don’t work here.

2. Demonstrate a Track Record

You must demonstrate all financial data required for financing: profit and loss statements, balance sheets, cash flow projections, etc. If you haven’t yet submitted an annual report or this data hasn’t been audited – which would be recommended – you can present estimates based on reasonable assumptions.

What is critical to the success of your application is that you can already demonstrate initial success (e.g., a successful campaign on Kickstarter or a smoke test). Otherwise, IBB Ventures will most likely not invest.

3. The First Impression

The first impression is crucial. For successful financing, you need an initial meeting with IBB – and it should be as professional as possible: Dress appropriately for the appointment; come prepared with background information about yourself and what you want to achieve with VC financing. A letter of intent from a business angel or VC can be beneficial.

4. Know Your Numbers

For VC financing, a solid financial plan with realistic figures and projections is required, from which investors can see how they will quickly recoup their investment through strong revenue growth. Since the potential discussion partners are bankers, a solid understanding of the terminology and financial data is essential to receive positive feedback.

How to Submit an Financing Application

Funding applications from founders can be submitted by phone or email:

030 / 2125-3201 info@ibbventures.de

If IBB is interested, you will receive an invitation to an initial in-depth meeting.

Do you need support with your application or your startup in general? We’re happy to help you with your application, schedule an appointment now!

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