Investors in Hamburg should exercise patience when reviewing funding requests from startups. - Importance of Perseverance in Hamburg
Start-ups chasing grants from Hamburgische Investitions- und Förderbank (IFB Hamburg) often face a trying wait. According to Julian Herrmann, CDU's spokesman for start-ups and innovation, this is especially true for technologically innovative start-ups, who might await approval for the InnoRampUp funding program for an average of about half a year - a staggering 174 days.
Hamburg's start-up founders are feeling the strain, as Herrmann points out. This is particularly problematic in the startup's early stages, given that the federal Exist funding program typically offers feedback within two months, with funding starting three months later. In stark contrast, IFB funding programs in Hamburg can take much longer, with InnoRampUp taking double the time! Up to €150,000 in grants are available through this program.
The so-called red-green Senate attributes this lengthy process to a multi-tiered procedure that includes a short presentation at IFB Innovationsstarter GmbH and participation in a selection committee meeting. Founders may need to substantially develop their start-up before it can secure funding.
Delayed responses are the norm, though. The approval process for other funding programs, from January 1, 2023, to May 31, 2025, ranged from 129 to 166 days. However, on the flip side, rejections were processed much more swiftly, with an average processing time of between 28 and 56 days.
The red-green Senate also highlights that the average processing time for funding applications depends on the founders' availability, their speed in providing further information or making required improvements to their start-up, and the quality and completeness of the information they provide.
While the approval time varies significantly between different programs, it's crucial for start-ups to be patient and diligent when navigating the grant application process, ensuring they provide all necessary information and make any required developments to their startup to increase their chances of success.
Keywords:
- Start-up
- Grant Application
- Funding Bank
- Patience
- Hamburg
- CDU
- German Press Agency
Insights:
InnoRampUp, the program with the longest approval times, is specifically designed for innovative start-ups in Hamburg, focusing on unique and groundbreaking ideas. As a result, the evaluation process might be more rigorous to ensure only the most promising and innovative projects are selected, potentially leading to a longer approval time [1][3]. On the other hand, the Exist Funding Program, a federal program, might have broader eligibility criteria and less stringent evaluation processes, potentially resulting in faster approval times. Additionally, if the funding amount is substantial or the process involves complex evaluations of innovative technologies, it may take longer to assess the viability and potential impact of the projects [3]. These factors can contribute to differences in approval times between the two programs. However, without direct insights from IFB Hamburg, these are speculative explanations based on general principles.
Start-ups in Hamburg are often required to exhibit considerable patience when applying for grants from IFB Hamburg, especially for technologically innovative start-ups seeking funding through the InnoRampUp program, which can take an average of 174 days for approval. To increase their chances of success, start-ups should ensure they provide all necessary information and make any required developments to their start-up, as the processing time for funding applications may depend on their diligence. Meanwhile, on a federal level, programs like the Exist Funding Program might offer faster responses due to less stringent evaluation processes compared to specialized programs like InnoRampUp, which focuses on innovative and unique ideas.
