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Augsburgs’ Business Development Agency supports crowdfunding

The financing of a start-up project is the central challenge for most start-ups. Since mid-April 2020, founders have been supported in the implementation of crowdfunding campaigns by the Augsburg City Economic Development Agency with up to €2,000 per campaign. The money will only be received by the company if the target amount set on the crowdfunding platform is reached.

J. Frank Sigerson

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This picture show a building in Ausberg.

The Business Development Agency of the City of Augsburg wants to support start-up project founders. Since mid-April, they have been supported with up to €2,000 per crowdfunding campaign. The provision of creative services, such as videos, texts or conceptual consulting for social media and advertising campaigns are recognized as eligible costs. Crowdfunding involves financing a project or projects via the Internet by small amounts of money from many individuals (crowd). A time limit and a fixed amount are set in advance as the funding target. Only if this goal is reached, the company will receive the money.

Read more about how the german city of Augsburg is encouraging crowdfunding and discover the latest crowdfunding projects that scored a huge success on crowdfunding platforms with the Born2Invest mobile app. Read the most important business news from around the world with our companion app.

Form of financing with reduced risk

“Crowdfunding offers a promising combination of financing, customer retention, marketing and market testing for start-ups, but also for established companies that want to add a new offering to their portfolio, while at the same time reducing risk,” explained economics expert Eva Weber. “With the crowdfunding support, we want to increase knowledge of the advantages, awareness and acceptance of this form of financing,” she added.

The financing of a start-up project is the central challenge for most start-ups. The instrument of crowdfunding provides young entrepreneurs in the market introduction phase with a new form of financing to raise capital for their company. Crowdfunding also enables start-ups from non-technological sectors to present their projects, products and services to a broad public and test whether there is a demand for them.

Strengthening local cultural and creative industries

Services that are promoted must be directly related to the implementation of a campaign on a suitable crowdfunding platform. In addition, the subject of the campaign must be aimed at establishing or expanding a profit-oriented activity. Not only the sponsored initiators of the campaign must have their company or residence in the city area, but also the creative service providers commissioned with the service must be based in Augsburg. In this way, the city’s crowdfunding support also strengthens the local cultural and creative industries.

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Institutions have joined forces to stimulate entrepreneurial spirit

“With the “Augsburg gründet” initiative, we want to make the regional support structures and offers for founders and those willing to set up a business more transparent and bundled in the future.” To this end, the most important institutions in the region have joined forces to stimulate entrepreneurial spirit in science, schools and the regional economy in accordance with the demand “We need a new start-up culture for Augsburg,” said Eva Weber.

However, this will not only be done by means of increased public relations work and events. In addition to active networking, support for business competitions and the coordination of new initiatives to promote start-ups, young entrepreneurs and those who want to become entrepreneurs should be better accompanied and supported.

 “Within the framework of our ‘Augsburg gründet!’ initiative, we are strengthening the networking between the start-up and creative scene,” said Eva Weber, listing further founders for the program. “This strengthens the transfer of knowledge about the planning and implementation of successful crowdfunding campaigns within this network and encourages those involved to deal with the topic of financing in general on a professional level,” Weber concluded.

Funding is provided in the form of share financing of 50% of the eligible services. The total amount of the grant is a maximum of €2,000. Anyone interested can apply for the subsidy at the Augsburg City Economic Development Agency.

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(Featured image by ulleo via Pixabay)

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First published in B4B WIRTSCHAFTSLEBEN SCHWABEN, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.

J. Frank Sigerson is a business and financial journalist primarily covering crypto, cannabis, crowdfunding, technology, and marketing. He also writes about the movers and shakers in the stock market, especially in biotech, healthcare, mining, and blockchain. In the past, he has shared his thoughts on IT and design, social media, pop culture, food and wine, TV, film, and music. His works have been published in Investing.com, Equities.com, Seeking Alpha, Mogul, Small Cap Network, CNN, Technology.org, among others.