What is the amount of money each startup will receive?

The equity-free grant is up to USD 100,000 for each startup. The amount of the grant may vary from startup to startup, and the total will be defined during the selection process based on the amount requested by the startup, its grant usage plan, size, business plan, scope of its solution, etc.

How will my startup receive financial support if selected?

The defined equity-free grant will be delivered to each participating startup through different transactions in an exclusive account for the management of these funds in the country of operation within the Innovatech program. The release of the financial support will be subject to the constant and visible commitment of the participating startups, as well as their compliance with previously established joint goals.

Does my startup have to pay taxes on the financial support?

The financial support is part of a donation from IFAD. The funds will be transferred through the German Sparkassenstiftung to each startup, which will be responsible for declaring and, if applicable, paying any taxes that may be due on such support.

What is an “Equity Free Grant”?

Innovatech is a non-profit project, thanks to IFAD funding, it can offer this “Equity Free Grant,” where the startup does not have to give up any equity in its company in exchange for the capital received or pay any interest on the capital.

Is the financial support subject to audits or reviews?

Yes, the financial support provided through the Innovatech program is subject to audits and reviews. This ensures the correct use of funds and compliance with the program’s requirements and objectives.

How will my startup contribute the 20% co-funding?

The startup will contribute 20% of co-financing based on the amount granted. This percentage may be contributed by the startup in-cash or in-kind, through different forms that may include: direct financial resources, services offered throughout the project, materials necessary for its development or even participation in operating costs. The combination of these elements will depend on the specific needs of the project and the capacity of the startup. Example: If the grant awarded is 100,000 USD, the startup must contribute 20,000 USD.