Starting a business costs money, and especially at the beginning every euro counts. The good news: in Germany you don't have to finance the start alone. Since 2019 I've guided founders here in Bremen's Überseestadt and helped 97+ business starts across 9 industries get on course. Time and again I see how many good funding programmes simply go unused, because nobody knows about them, or because a procedural slip topples the funding. In this post you get the overview: which pots exist, who they fit and what to watch out for when it comes to order.
The two kinds of funding: advice and capital
Funding broadly falls into two groups. One funds your know-how, that is, professional advice and coaching, before and while you start. The other gives you capital, as a grant, a scholarship or a low-interest loan. Which combination makes sense for you depends on your starting point: whether you're a jobseeker, how innovative your idea is and how much capital you need. For a quick first read on this, the funding check filters out the right programmes in just a few clicks.
Funding for advice and coaching
AVGS start-up coaching
If you're a jobseeker or at risk of unemployment, the activation and placement voucher (AVGS) is often the strongest lever. It funds start-up coaching with an AZAV-certified provider like FOUNDARA, once approved, at 100%, meaning €0 out of pocket for you. The legal basis is § 45 SGB III. Important: the AVGS is a discretionary benefit, there's no guaranteed entitlement. The funding only becomes binding with the official approval notice (Bewilligungsbescheid). It's issued by the Federal Employment Agency (Agentur für Arbeit) or the Jobcenter, and eligibility is tied to your German benefit status, so it mainly applies to founders who live in Germany and receive benefits.
Start-up consulting via the Starthaus
Through the Starthaus of the Bremer Aufbau-Bank, the State of Bremen funds professional start-up consulting with up to 80% of the consulting cost, capped at €2,800 per applicant. That makes the thorough preparation of your venture, from the business idea to the business plan to the financing, affordable. The order is decisive: the application belongs before the consulting starts. I coordinate exactly this sequence with you so nothing is lost. You'll find all the details about funded consulting on my page on startup funding in Germany.
Federal BAFA funding
Nationwide, the Federal Office for Economic Affairs and Export Control (BAFA) funds business and start-up consulting. Here too, the order is everything: the application and its review must happen before the consulting begins. Even signing the contract can count as the start of consulting, so under no circumstances should you start beforehand. We make sure together that eligibility isn't lost for purely formal reasons.
Funding for your living costs and your capital
Start-up grant (Gründungszuschuss)
The start-up grant (Gründungszuschuss) is aimed at people who start a business while receiving unemployment benefit I (Arbeitslosengeld I). It supports your living costs in the first phase after the start. For the application to convince, you generally need an expert opinion (fachkundige Stellungnahme), a business plan, a financing plan and a profitability forecast. On top of that, you usually need at least 150 days of remaining ALG I entitlement. The Gründungszuschuss, too, is a discretionary benefit, not a legal entitlement.
The clever move is to combine them: the AVGS coaching gives you exactly the solid business plan you'll need for a successful Gründungszuschuss application anyway. That way you use both forms of support sensibly, one after the other, first the know-how, then the cash support for the start.
Loans and scholarships
If you need capital for investments, it's worth looking at the development loans from the Bremer Aufbau-Bank, for example the EFRE micro-loan for smaller needs or the ERP Bremen development loan for larger ventures. For innovative, technology- or knowledge-based start-ups, programmes such as the Starthaus coaching programme BRUT or the nationwide EXIST start-up scholarship also come into play. The exact terms change frequently and should be checked directly with the respective body.
Getting the order right is what counts
The most common mistake with funding isn't the wrong application, it's the wrong timing. Many programmes, BAFA and the Starthaus consulting subsidy above all, require the application to be submitted and approved before the consulting begins. Start too early or sign contracts, and you lose your entitlement. That's why I plan the order with you from the start: first check and apply, then get going. You can run a free pre-check with the funding check; the legal form finder clarifies which legal form fits; and the formation cost calculator estimates the costs you'll face.
Which funding fits you?
There isn't one right form of funding, there's the right combination for your situation. If you're a jobseeker, the path often runs through the AVGS and the Gründungszuschuss. If you have an innovative idea from research or technology, BRUT and EXIST are worth it. If what you mainly need is solid advice, the Starthaus subsidy is the way to go. I make exactly this assessment with you in the initial consultation. You'll also find detailed answers on funding, costs and the process in my FAQ.
For orientation only, not legal, tax or funding advice. All information is as of 2025/2026 and without guarantee. Forms of support such as the AVGS, the Gründungszuschuss or BAFA funding are generally discretionary benefits; funding only becomes binding with the respective approval notice. What's decisive is always your individual case. If you'd like to talk it through personally and with no obligation, just reach out via the contact form.