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. Investors (business angels, private, and public investors) may provide half of this amount.