EXIST Funding for a Spin-Off's Market Entry

Because the company has been incorporated and is continuing the development of a transferred research result, it fits EXIST Phase II. The grant co-funds the continued development and the steps towards a first product, with up to €180,000 at no more than 75 percent of costs, the company contributing own funds equal to a third of the grant. That grant eases the burden of the most resource-constrained phase, when the company has formed but is not yet earning.

The two phases form a continuous path. Phase I, before incorporation, funds the team and the development at the host institution to the point where the technology and the business case justify forming a company. Phase II then co-funds the incorporated company through the step to a first product and market entry, with up to €180,000 at no more than 75 percent of costs. A spin-off does not have to treat them as separate decisions: the strongest applications plan the two as one arc, from research result to company to market, which also makes the case for each phase more convincing. In practice, a team that has already delivered in Phase I comes into Phase II with a track record, and that evidence of execution strengthens the application for the continued funding.

For a spin-off that has just incorporated out of a research project, EXIST Phase II co-funds the expensive bridge between a proven technology and a first product on the market. It is most valuable precisely because it lands at the point where a young company's own resources are thinnest.

More on EXIST: The guide EXIST: founder grant and research transfer explains the programme step by step. How we support your project is covered under EXIST consulting.