How InnoFintech Is Promoting Innovation in the Financial Market

With the support of the Hamburg Investment and Development Bank (IFB Hamburg), IFB Innovationsstarter GmbH, Finanzplatz Hamburg e. V. and the Chamber of Commerce, a funding program, Innofintech, that is unique in Germany was launched in spring 2022 under the umbrella of the Hamburg Financial Industry Master Plan. The primary goal: Strengthening the local FinTech ecosystem.

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Funding: Grant of up to 200,000 euros

InnoFinTech makes it easier for young companies from the areas of fintech and related segments (e.g. Legaltech, Insuretech) to implement innovative projects. In addition, the teams are supported in market establishment and growth and are therefore even better able to generate jobs and added value in Hamburg. The funding includes a grant of up to 200,000 euros per company, which can be used to finance a clearly defined project.

The response to the program was very strong right from the start, meaning that the original funding volume was quickly used up. The high demand and the conviction that further outstanding ideas from founders deserve a chance have led us to extend the program until the end of 2025. This means that the funding for Hamburg FinTechs reaches a total volume of almost 9 million euros.

High demand for the Innofintech program

A total of 30 startups have been supported since the beginning. In the first year of its implementation, 17 FinTechs were selected from almost 60 applications and supported with a funding volume of around 2.5 million euros. This investment has already paid off: the majority of the FinTechs supported were able to accelerate their growth and create new jobs in Hamburg in this short period of time. The funding also helps to address investors and is seen as a valuable “proof of concept”.

The InnoFinTech program has already supported 30 startups in Hamburg

Last year there were over 50 concrete expressions of interest, of which eleven teams were supported in the five meetings of the award committee led by chairman Clemens Vatter. The program continues to advance and shows the enormous need and potential of the FinTech scene in Hamburg.

Hamburg financial industry master plan

The InnoFinTech program addresses a central point of the Hamburg financial industry master plan, namely the development of an active start-up scene in the Hamburg financial industry. InnoFinTech makes a decisive contribution to maintaining and improving the innovative capacity of Hamburg as a business location.

The current challenging economic situation – including on the capital market – makes it clear how important early-stage funding is for young companies. This also demonstrates the demand for the program and shows the potential that lies in Hamburg’s financial sector. InnoFinTech is a strong signal that Hamburg is ready to promote and advance innovations in the financial sector.

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(Featured image by 2857440 via Pixabay)

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First published in Der Bank Blog. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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