Seedfonds BW

Seedfonds BW is a venture capital firm dedicated to fostering innovative high-tech startups in the Baden-Württemberg region of Germany. The firm collaborates with the High-Tech Gründerfonds to provide early-stage financing to technology companies based in the region. Investors in Seedfonds BW include the federal state of Baden-Württemberg (Ministry of Finance and Economic Affairs), the L-Bank, MBG Mittelständische Beteiligungsgesellschaft Baden-Württemberg GmbH, and LBBW Venture Capital GmbH.

The firm's investment strategy focuses on small Baden-Württemberg-based companies with fewer than 50 employees and annual revenues or balance sheets of up to 10 million euros. These companies should be no more than one year old and engaged in application-oriented, high-innovation research and development projects with significant growth potential. Seedfonds BW typically invests up to 600,000 euros, combining equity participation and subordinated loans, acquiring a total of 18% equity shares. The subordinated loan has a seven-year term, with interest deferred for the first four years. An additional equity contribution from the company's founders is required.

Seedfonds BW aims to enhance the founding activities in Baden-Württemberg, addressing the financing gap often faced by young innovative technology companies in the early stages. By providing essential capital, the firm enables startups to focus on research, prototype development, and market introduction, thereby contributing to the region's economic growth and technological advancement.