High-Tech Gründerfonds Sets New Financing Conditions
Summary
In response to changing requirements in the startup and venture capital scene, as well as current interest rate trends, German leading venture capital investor and startup funding provider High-Tech Gründerfonds (HTGF) is changing its financing conditions.The measures, which will be effective from January 1, 2016, include the following: The maximum seed investment amount will be raised from €500k to €600k.Additionally, the maximum amount of shares that HTGF will obtain will be 15% (HTGF standard conditions case), with up to €1.5m being available for subsequent rounds for every invested startup.The interest rate of the subordinated loans will be reduced from 10% to 6%, and interest payments will be deferred for 4 years to preserve the startup’s liquidity.In addition, the founders’ financial contributions will be adjusted to a uniform 10% of the initial HTGF seed investment across all old and new federal states.