Startup grants in Germany in 2026: federal, state and EU funding you do not pay back
Short answer: the main startup grants in Germany in 2026 are federal and state programs you never pay back. Before you found, the EXIST Business Start-up Grant pays 12 months of stipends (€1,000 to €3,000 a month per founder) plus up to €30,000 in material costs to teams from German universities and research institutions. Open-source developers can get up to €158,000 per team from the Prototype Fund. After you found, the states take over: InnoRampUp in Hamburg covers up to 90% of costs (max €150,000), Start?Zuschuss! in Bavaria covers 50% (max €36,000) and Berlin's Transfer BONUS pays for work by research partners. Every company with R&D can also claim the Forschungszulage, a tax allowance of 25% of eligible R&D costs (35% for SMEs) that is paid out even if you make a loss.
The Grant Index lists 10 government programs specific to Germany, plus EU programs that German startups can use, each checked against its official page (the date is in the "Verified" column). This guide covers grants, stipends and tax allowances only: nothing here is a loan, and none of it requires giving up equity. It goes from federal programs to state programs, then EU funding, and ends with the rules that most often get applications rejected.
1. Federal programs
Federal programs are open to founders anywhere in Germany. EXIST is the classic route from a university into a company; the Prototype Fund and the Sovereign Tech Fund pay for open-source software; and the Forschungszulage is a legal entitlement rather than a competition.
| Program | What you get | Who qualifies | Verified |
|---|---|---|---|
| EXIST Business Start-up Grant (Gründungsstipendium)German Federal Ministry for Economic Affairs (BMWE) | 12-month stipends of €3,000/mo (PhD), €2,500 (graduates), €2,000 (vocational), €1,000 (students) + €150/child; team material budget €30,000 (solo up to €10,000) + €5,000 coaching — up to ~€143k for a 3-person PhD team | Teams of up to 3 from a German university or research institution, which applies on your behalf. Graduates up to 5 years after leaving university; students at least halfway through their degree. The company must not exist yet when funding starts. | 2026-10-22 |
| EXIST WomenGerman Federal Ministry for Economic Affairs (BMWE) | €2,000 material budget per founder + up to 3 months stipend at €1,000–€3,000/month (by qualification) + €150/child, within a 10-month programme | Women students, graduates and researchers with an early founding idea; apply via a participating university. The stipend (max 3 months) goes only to some participants. | 2026-10-22 |
| Prototype FundFederal Ministry of Research, Technology and Space (BMFTR) / OKF DE | Up to €158,000 (~$171k) per team or ~€79,000 per individual (6-month funding phase + 4-month Second Stage), plus coaching | Individuals resident and taxed in Germany, or teams of up to four with a German GbR; companies cannot apply. All code must be open source; the formal application is in German. | 2026-10-30 |
| Sovereign Tech FundSovereign Tech Agency (Germany) | Funds maintenance and development work on open-source infrastructure; minimum project size €50,000 (no maximum published) | Maintainers of open-source infrastructure (libraries, protocols, developer tools) used widely; minimum project size €50,000; not for user-facing apps or prototypes. | 2026-10-30 |
| Forschungszulage (German R&D Tax Allowance)Bescheinigungsstelle Forschungszulage / German tax authorities | Allowance of 25% of eligible R&D costs (35% for SMEs); maximum assessment base €12M per year for costs from 1 Jan 2026 (max ~€3M/yr, €4.2M for SMEs); contract research counted at 70%; paid out even if loss-making | Any company that pays tax in Germany. Two steps: the BSFZ certifies the R&D project, then you claim the allowance at the tax office. | 2026-10-22 |
Timing for the Prototype Fund. Applications for the current round (class 03) run until 30 November 2026 at 15:00 CET, and funding starts on 1 June 2027. Funding lines for 2026 include one for people under 26, students and IT trainees.
The Forschungszulage is the one most startups miss. From 2026, the maximum assessment base is €12 million a year, contract research counts at 70% of its cost, and the allowance is paid out in cash if it exceeds your tax bill. That makes it valuable even for a loss-making startup.
2. State programs (Länder)
Most direct grants for young companies come from the federal states, and you must be based in that state. These are the programs we track; the amounts are maximums, and most cover a share of eligible costs rather than a lump sum.
| Program | What you get | Who qualifies | Verified |
|---|---|---|---|
| InnoRampUpIFB Hamburg | Grant up to €150,000 (~$162k) per startup, covering up to 90% of eligible costs | Technology-based, innovative startups in Hamburg, under two years old; focus on the UN Sustainable Development Goals; de minimis state-aid rules apply. | 2026-10-30 |
| Start?Zuschuss! pausedBavarian Ministry of Economic Affairs (StMWi) | 50% of eligible costs, max €36,000 (~$39k) | Tech and digital startups in Bavaria, up to two years old; competitive rounds. The 23rd round opens 25 Nov 2026 (12:00) and closes 10 Jan 2027. | 2026-10-30 |
| Transfer BONUSIBB Business Team (Berlin) | €7,500 at 100% (entry); up to €15,000 at 70% (standard); up to €45,000 (~$48.6k) at 70% for digital or gamification/XR projects | Technology-oriented SMEs and startups in Berlin. Covers only the research or service partner's work, backed by their offer; the project must not have started when you apply. | 2026-10-30 |
| Innovationsgutschein Start-up BWL-Bank / Baden-Württemberg Ministry of Economic Affairs | Up to €20,000 (~$21.6k), covering 50% of R&D services invoiced by a research institution | Young companies up to five years old, headquartered in Baden-Württemberg; for R&D commissioned from a research institution. Apply via the L-Bank portal. | 2026-10-30 |
| Gründungsstipendium.NRWMinistry of Economic Affairs NRW | €1,200/month (~$1.3k) for 12 months plus coaching; gender-diverse teams can get €1,500/month | Founders in North Rhine-Westphalia with an innovative idea in any sector; apply through an accredited NRW start-up network that recommends you. | 2026-10-30 |
| InnoStartBonusSächsische Aufbaubank (SAB) | €1,050/month (~$1.1k) per founder for up to 12 months, plus €150/month per child | Founders with their main residence in Saxony, max two per team, who will found within 12 months; idea paper and video via futureSAX, then a jury, then the SAB application. | 2026-10-30 |
Not in one of these states? Every state has its own development bank and programs, and the federal funding database Förderdatenbank lists them by region. Many state offers are loans or equity; check whether a program is a grant before you plan around it.
3. EU funding open to German startups
German companies can apply to every EU program for startups and SMEs. The two grants below are the most relevant for early-stage tech companies; the EIC Accelerator also offers an optional equity investment, which you can decline.
| Program | What you get | Who qualifies | Verified |
|---|---|---|---|
| EIC AcceleratorEuropean Innovation Council (European Commission) | Grant below €2.5M (TRL 6–8, ≤24 months) plus optional €1–10M equity/quasi-equity via the EIC Fund (blended finance) | Single startups and SMEs with a breakthrough innovation (TRL 6 to 8). Three steps: short proposal (anytime), full proposal, jury interview. Grant-only companies receive the grant once during Horizon Europe. | 2026-10-23 |
| Women TechEU 2European Innovation Council (European Commission) | €75,000 (~$81k) non-dilutive grant + mentoring, coaching and training | Women-led early-stage deep-tech startups; pass the Eligibility Strand first, then full proposal deadlines on 14 Jan 2027, 1 Apr 2027 and 8 Jul 2027. | 2026-10-30 |
| EuroHPC AI Factories — Playground AccessEuroHPC Joint Undertaking | Free entry-level GPU allocation on an EU AI Factory supercomputer for 1–3 months | AI startups and SMEs new to supercomputing; free GPU time on EU AI Factory supercomputers for 1 to 3 months. | 2026-10-22 |
For compute, the German provider IONOS gives startups under 5 years old up to €100,000 in cloud credits; see our cloud credits guide and GPU credits guide for more.
4. Which program fits your stage
- Still at university or just graduated, no company yet: EXIST Business Start-up Grant, or EXIST Women for an early idea. In NRW and Saxony, the state stipends (Gründungsstipendium.NRW and InnoStartBonus) pay a monthly allowance while you build.
- Building open-source software: the Prototype Fund for a new project (individuals or small teams), the Sovereign Tech Fund for maintaining infrastructure others depend on.
- Just incorporated (first two years): InnoRampUp in Hamburg or Start?Zuschuss! in Bavaria.
- Working with a university or research lab: the Innovationsgutschein in Baden-Württemberg or Transfer BONUS in Berlin, and claim the Forschungszulage on the same R&D.
- Deep tech ready to scale: the EIC Accelerator, and Women TechEU for women-led teams.
5. Rules that sink applications
- Starting too early. Transfer BONUS requires that the project has not started when you apply, and EXIST requires that the company is not yet founded when funding begins.
- Applying as the wrong entity. For EXIST, the university or research institution is the formal applicant, not you. The Prototype Fund does not accept companies or associations at all.
- Location. State programs need your company (or, for stipends, your residence) in that state, and some need a recommendation from a local network first.
- Combining support. InnoStartBonus cannot be combined with other living-cost stipends or unemployment benefits, and caps other paid work at 20 hours a week. InnoRampUp is subject to the EU de minimis limit on state aid.
- Language and deadlines. Many forms are German-only (the Prototype Fund's formal application is in German), and competitive rounds such as Start?Zuschuss! open and close on fixed dates.
- Tax. Some stipends are taxable income; InnoStartBonus says so explicitly.
Not sure which you qualify for? The eligibility checker asks for your country, stage, company age, funding and backing once and gives every program a verdict. You can also browse all government programs.
FAQ
What is the best startup grant in Germany?
For university teams, the EXIST Business Start-up Grant: 12 months of stipends (€1,000 to €3,000 a month per founder by qualification), up to €30,000 in material costs for a team and €5,000 for coaching. After founding, the largest state grant we track is InnoRampUp in Hamburg (up to €150,000, covering up to 90% of eligible costs).
Do I have to pay back German startup grants?
No. The programs in this guide are non-repayable grants, stipends and a tax allowance. The Forschungszulage is credited against your tax and paid out if it exceeds what you owe. Some stipends count as taxable income, though (InnoStartBonus says so explicitly), and grants usually require proof of how you spent the money.
Is there funding for open-source projects in Germany?
Yes. The Prototype Fund gives individuals and teams of up to four up to €158,000 per team for public-interest open-source software (applications for the current round close on 30 November 2026), and the Sovereign Tech Fund pays for maintenance of open-source infrastructure, with a minimum project size of €50,000.
Are there startup grants for women founders in Germany?
Yes. EXIST Women supports women from German universities and research institutions with an early idea (material budget, mentoring and an optional short stipend), Gründungsstipendium.NRW pays more to gender-diverse teams (€1,500 instead of €1,200 a month) and the EU's Women TechEU gives women-led deep-tech startups €75,000.
Can startups get R&D funding in Germany?
Yes. Every company that pays tax in Germany can claim the Forschungszulage: 25% of eligible R&D costs, or 35% for SMEs, on an assessment base of up to €12 million a year from 2026. Startups in Baden-Württemberg can also get the Innovationsgutschein (50% of R&D services, up to €20,000) and Berlin startups Transfer BONUS.
Can a German startup apply for EU grants?
Yes. German companies are eligible for the EIC Accelerator (a grant below €2.5M, with an optional equity investment), Women TechEU and free GPU time through the EuroHPC AI Factories.
Program terms change often. Every program page linked above shows its official source and the date we last verified it; confirm on the provider's page before you apply. Spotted something out of date? Report a correction.
Related guides
Browse the full lists: Startup programs in Germany · Government grants for startups