Participatory Programs

Participatory capital refers to equity which is provided by venture capital companies or private investors. The usual securities are not needed here.

The participation can be “silent” or “open.” In a silent participation, the investors do not get to be coowners of the company nor do they get any voting or management rights. In an open (direct) participation, the investor can exert influence on the management as a co-owner of the company.

Venture capital companies provide capital in return for an annual remuneration consisting of a fixed and profit-based share, and the participation is based on the nominal repayment of the invested capital.
For the companies, the advantages of the participatory programs are primarily found in strengthening the equity base while at the same time conserving collateral and increasing the financial latitude.

Here is a summary of the public participatory programs:

 

Participatory programAmount of participation
MBG - Mittelständisches Beteiligungsprogramm

min € 50.000

max € 1 million (in exceptional cases max € 2 million)

SBG - Beteiligungsprogramm

max € 1 million

in exceptional cases max € 2,8 million

Technologiegründerfonds Sachsen (TGFS)

min € 200.000

max € 4 million

Wachstumsfonds Mittelstand Sachsen (WMS)

min € 500.000

max € 2,5 million

ERP-Startfonds der KfW Bankengruppeup to € 2,5 million per 12-month period
up to € 5 million in all
High-Tech Gründerfonds

initial financing of up to € 500,000

further € 1,5 million for follow-on financing