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Access to Finance for Start-ups: Venture capital fund NSeed
Published on 09 July 2018
Germany
Hannover
This is the good practice's implementation level. It can be national, regional or local.
About this good practice
Lower Saxony wants to develop its territory by enhancing the entrepreneurship especially technology orientated start-ups. This enhancement is made through the offer of a special investment fund.
The fund is addressed to founders, start-ups and young companies in Lower Saxony (younger than 2 years) and does not focus on special branches. The engagement should strengthen und sustain the equity capital base. Both open and silent partnerships are possible.
The fund supports growth-triggered cash requirements, investments in fixed and current assets and the realisation of innovative and technological ideas.
For a silent partnership NBank participates financially by her Capital Investment Company Lower Saxony as silent partner, without direct influence on the management, but with business development analysis by a periodic reporting of the management.
The engagement is in a range from 100.000 to 300.000 Euro, the annual fee depends on the current market situation and the credit standing.
For open partnerships NBank participates direct by her Capital Investment Company Lower Saxony to the capital of the company. It is always a minority shareholding with a minimum time horizon of seven years.
It is important that the applying persons have a special and professional qualification and a coherent business plan that documents the feasibility and marketability of the product and/or the service.
The fund is addressed to founders, start-ups and young companies in Lower Saxony (younger than 2 years) and does not focus on special branches. The engagement should strengthen und sustain the equity capital base. Both open and silent partnerships are possible.
The fund supports growth-triggered cash requirements, investments in fixed and current assets and the realisation of innovative and technological ideas.
For a silent partnership NBank participates financially by her Capital Investment Company Lower Saxony as silent partner, without direct influence on the management, but with business development analysis by a periodic reporting of the management.
The engagement is in a range from 100.000 to 300.000 Euro, the annual fee depends on the current market situation and the credit standing.
For open partnerships NBank participates direct by her Capital Investment Company Lower Saxony to the capital of the company. It is always a minority shareholding with a minimum time horizon of seven years.
It is important that the applying persons have a special and professional qualification and a coherent business plan that documents the feasibility and marketability of the product and/or the service.
Resources needed
• 4.000.000 Euro for the fund (except staff costs)
• -0,5 VC manager in charge of the Capital Investment Company Lower Saxony
• informal business network of Lower Saxony
• -0,5 VC manager in charge of the Capital Investment Company Lower Saxony
• informal business network of Lower Saxony
Evidence of success
Our parameters are:
• the success of the engagements (business survival rate)
• Flowbacks to the fund /returns on the investments
• successful exits
• congruency of offered conditions and requested conditions
• confirmation of a comprehensible and sustainable selection process
• the success of the engagements (business survival rate)
• Flowbacks to the fund /returns on the investments
• successful exits
• congruency of offered conditions and requested conditions
• confirmation of a comprehensible and sustainable selection process
Potential for learning or transfer
With NSeed parts of an existing fund are reserved for higher risk levels as they are in early company stages. The supply could be adjusted to market demand. The engagement could be combined with capital of other providers and programmes.
Other regions with existing growth orientated funds can transfer the process of budget allocation, market demand and risk expansion of the fund to a specific policy driven focus. Cooperation with other VCs or BA is possible.
Other regions with existing growth orientated funds can transfer the process of budget allocation, market demand and risk expansion of the fund to a specific policy driven focus. Cooperation with other VCs or BA is possible.
Further information
Website
Good practice owner
You can contact the good practice owner below for more detailed information.
Organisation
State Development Bank of Lower Saxony
Germany
Hannover