There is great news for the future of token-based financing in Saxony. Reignite is the first startup to receive the JTF Business Angel Bonus from the Saxon Development Bank (SAB).
What is special about it?
The startup Reignite has used Tokenize.it for its financing, making it the first Saxon startup to receive government support for financing through GmbH tokens. Previously, the eligibility of investments via tokens was unclear for a long time.
Through the commitment of Reignite CEO & Founder Johannes Herbig and his team, as well as the support of FutureSAX has now succeeded in changing this and making token financing eligible.
What does this mean for token-based financing?
This step is an extremely positive signal for token-based financing, as it makes it a legitimate and eligible investment in accordance with the guidelines of Saxon State Ministry of Economics, Labour and Transport (SWMA), a state institution, recognized in Saxony.
For Tokenize.it, this is a sign that token investments have arrived in the world of established financing methods and are trusted by government institutions.
This development gives hope and assumption that start-up funding from other federal states will also follow this example and recognize token-based financing methods.
Apply for a JTF Business Angel bonus for investments with Tokenize.it
If you are the founder of a Saxon start-up and have used or would like to use Tokenize.it as a financing method, you are also entitled to funding the JTF Business Angel Bonus under certain conditions.
We will explain to you exactly what the bonus is and what other requirements there are in the following FAQs, which are based on the information from Funding guideline are based on the Federal Ministry of Economics and Climate Protection.
What is the JTF Business Angel Bonus?
The JFT Business Angel Bonus is a funding program of the Saxon SWMA. The aim is to create an incentive for business angels to invest in Saxon startups by subsidizing investments by SAB and the EU. As a founder of a young company, this gives you additional funds for further investments in addition to the angel investment.
What does the funding program offer?
According to the JTF Business Angel Bonus funding guideline, startups receive a subsidy of 50% of eligible expenditure. According to Section 5.2.1 of the Directive, eligible expenditure includes personnel costs and expenditure as well as material and capital expenditure necessary to set up or further develop your start-up.*
The maximum amount of the subsidy is limited to €400,000. In addition, there is a rule that subsidies are only granted up to the amount of the business angel's investment.*
So should a business angel invest 350,000€ in your startup, that is also the maximum amount of funding that you can receive. For example, if a business angel invests €450,000, then the maximum amount of €400,000 applies.
Who is the funding aimed at?
In principle, funding is only aimed at Saxon startups. In addition, the SMWA defines the funding area as follows:
- In the Lusatian region, the districts of Bautzen and Görlitz*
- In the Central German district, the districts of North Saxony, Leipzig*
- The independent cities of Chemnitz and Leipzig*
What conditions must be met for funding?
In addition to restricting the funding area, your startup must meet further conditions in order to receive funding.
According to the funding guidelines, these are:
- Your startup must be founded.*
- Your startup requires that it receives an investment of at least 50,000€ from a business angel as equity or an equity-like contribution.* This also includes token-based investments via Tokenize.it.
- Business angels must invest in your startup either as natural persons directly or through one or more affiliated companies, e.g. in the form of a GmbH, an entrepreneurial company (UG) or a registered cooperative (eG) with a maximum of 10 shareholders each.*
- The invested capital must be available to you in addition to your existing capital; it is not possible to reallocate existing funds.*
- Your startup must have an innovative business model.* The requirements for this can be found in section 4.3 of the Directive.
- Your startup must meet environmental and social criteria.* The requirements for this can be found in section 4.4 of the Directive.
- You must comply with an earmarking period of 3 years.*
In addition to the criteria mentioned above, there are also special regulations which investments are not supported. The SMWA is concerned that only investments by business angels are really considered eligible for funding. According to the funding guideline, investments by:
- The majority companies and managing directors of your startup as well as their immediate relatives,*
- venture capital firms that are subject to licensing or registration requirements of the Capital Investment Code and are not considered business angel firms,*
- credit institutions,*
- Local authorities and legal entities governed by public law.*
How do I claim the bonus?
You can get the bonus directly from SAB Apply online.
For more information about the JTF Business Angel Bonus, please visit the website of the Federal Ministry of Economics and Climate Protection or the website of SAB inform.
*The content of the areas marked in italics was taken from the funding guidelines. We do not guarantee the accuracy and timeliness (last retrieval: 17.01.2024) of the marked passages and they do not constitute legal advice.
Source image: https://www.business-angels.de/46-millionen-euro-fuer-business-angel-bonus-und-akzeleratorenfoerderung-in-sachsen/
