EXIST and start-up funding in Germany: business start-up grant, Transfer of Research and alternatives
Editorial team artemis-ju.eu · Updated 27 October 2026
EXIST is Germany’s federal programme for innovative start-ups coming out of universities and research institutions, funded by the Federal Ministry for Economic Affairs and Energy (BMWE). Its best-known lines are the EXIST business start-up grant (EXIST-Gründungsstipendium), which finances founding teams for up to 12 months, and EXIST Transfer of Research (EXIST-Forschungstransfer) for technically demanding projects. Founders without a university link usually turn to other instruments: the employment agency’s start-up subsidy, KfW’s ERP start-up loan or state programmes.
EXIST business start-up grant
The grant is aimed at students, graduates and researchers with an innovative, technology-oriented or knowledge-based business idea. It is managed by Projektträger Jülich on behalf of the BMWE and co-financed by the European Social Fund Plus (ESF+). The application is submitted by the university or research institution that hosts the team.
Benefits according to Projektträger Jülich:
| Item | Amount |
|---|---|
| Duration | up to 12 months |
| Stipend, with degree or vocational training | EUR 2,000 per month |
| Stipend, students | EUR 1,000 per month |
| Child supplement | EUR 150 |
| Material costs, single founder | up to EUR 10,000 |
| Material costs, team | up to EUR 30,000 |
| Coaching | EUR 5,000 |
| Team size | up to 3 people |
Older sources sometimes show different stipend levels; rely on the current figures on exist.de and in the programme handbook.
EXIST Transfer of Research
This line supports start-ups that need substantial development work before market entry. According to Projektträger Jülich it has two phases:
- Phase I (before founding): a research team at a university or research institution develops the technology and prepares the start-up. Funding covers up to three researchers (one may be a technician or lab assistant) plus one person with business expertise, and material costs of up to EUR 250,000. The standard duration is 18 months, extendable to up to 36 months for highly innovative projects. The institution applies.
- Phase II (after founding): the new company can receive a grant of up to EUR 180,000, covering at most 75 % of project-specific costs. The company finances the rest.
Projektträger Jülich states that the current programme runs until 31 December 2029. Check submission dates and forms on exist.de before planning.
Not EXIST: the start-up subsidy (Gründungszuschuss)
The start-up subsidy is a benefit of the Federal Employment Agency under §§ 93 and 94 of Social Code Book III (SGB III) for people who start a full-time business while receiving unemployment benefit. Key points:
- It is discretionary: there is no legal entitlement even if all conditions are met.
- You need at least 150 days of remaining unemployment benefit entitlement and a viability statement from a competent body such as a chamber of commerce (§ 93).
- Under § 94, it pays an amount equal to your last unemployment benefit plus EUR 300 per month for six months; a further nine months at EUR 300 per month may be granted.
For founders coming straight from university or a research post, it is usually not relevant.
ERP start-up loan StartGeld
According to KfW, the ERP start-up loan StartGeld (programme 067) finances start-ups, business successions and young companies up to five years after starting operations with up to EUR 200,000 per project, of which up to EUR 80,000 may be working capital. KfW assumes 80 % of the credit risk for the lending bank. You apply through a financing partner such as your house bank (Hausbank), before the project starts. Medium-sized and large enterprises are excluded under the EU SME definition. A loan must be repaid; our guide on loans versus grants explains the difference.
State and EU options
Each German state has its own development institution offering start-up and innovation programmes, from grants to equity. See our overview of state funding programmes. For start-ups with breakthrough technology, the EU’s EIC Accelerator may fit. Specialised advisers are listed under start-up funding.
Which instrument fits?
| Starting point | Likely option |
|---|---|
| Founding from university with an innovative idea | EXIST business start-up grant |
| Research result needing major development | EXIST Transfer of Research |
| Founding from unemployment | Start-up subsidy (at the agency’s discretion) |
| Capital for investment and working capital | ERP start-up loan StartGeld via your bank |
| Regional support or equity | State development institution |
Sources
- EXIST programme website (BMWE)
- Projektträger Jülich: EXIST Transfer of Research
- Federal funding database: EXIST business start-up grant
- Social Code Book III, § 93 start-up subsidy (German)
- Social Code Book III, § 94 duration and amount (German)
- KfW: ERP start-up loan StartGeld (067)
This guide does not replace tax or legal advice; the programme guideline and the grant decision of the funding body are binding.
Sources and further reading
Frequently asked questions
Can international students and researchers apply for EXIST?
EXIST is aimed at teams based at German universities and research institutions, and the institution submits the application. Questions on residence status and eligibility should be clarified with your university's start-up service and the immigration authority before you plan.
Is the start-up subsidy an entitlement?
No. Under § 93 of Social Code Book III it is a discretionary benefit. The employment agency decides case by case even if all conditions are met.
Can I combine EXIST with a start-up loan?
Grants and loans can generally be used side by side, but the cumulation rules of each programme apply. Check with the programme manager and your bank.