Start-up BW Pro-Tect –start-up support to bridge liquidity shortages caused by the pandemic

By project UpGradeSME

Published on 30 September 2022

Germany

Stuttgart

About this good practice

"Start-up BW Pro-Tect" represented an extension of the regional start-up support program "Start-up BW Pre-Seed" funded by the Ministry of Economic Affairs, Labour and Tourism Baden-Württemberg. The program provided repayable financial support to regional start-ups which had already passed the first round of financing but had suffered liquidity shortages as a consequence of the pandemic. In addition, start-ups had to be at an early development stage, and not be in existence for more than 5 years. Candidates also had to show a high degree of innovativeness, and a growth-oriented business model relying on innovative product development or applications e.g. AI applications, Life Sciences, or smart green technologies. The financial support was meant to bridge liquidity shortages until the next round of financing, and thus specifically covered the lack of financing for start-ups during the pandemic. The program was implemented within the established structures of "Start-up BW Pre-Seed”, thereby involving program partners of the original support program, for instance regional accelerators.

Resources needed

- 50.000-200.000 € of repayable funding, 80 % covered by Baden-Württemberg, 20 % by private co-investors
- Baden-Württemberg’s development bank “L-bank” was responsible for the program’s implementation alongside the regional accelerators and partners of „Start-up BW Pre-Seed“

Evidence of success

The program was extended and upgraded financially in December 2020.
Until the end of June 2021, more than 140 start-ups received support from Start-up BW Pro-Tect.

Potential for learning or transfer

"Start-up BW Pro-Tect" showcases the benefits of a pandemic-specific support implemented within established program structures. While "Start-up BW Pro-Tect" has a specific objective, target group and timeline, its personnel resources, funding process and start-up focus represent existing structures which will continue to be an important start-up support beyond the pandemic. This approach is resource-efficient and at the same time contributes to and extends Baden-Württemberg’s start up strategy.