Fraunhofer Venture
Fraunhofer Venture

FFM – Fraunhofer Supports Management

Purpose of the Funding Program

A mature technology, a sound business model, and a strong and compelling founding team are the three most important factors for attracting investors and thereby establishing a high-tech startup in the market. Especially during the highly critical early stages of a company, an experienced CEO often makes the decisive difference between success and failure. This is where the “FFM – Fraunhofer Promotes Management” funding initiative comes in.

Especially in the venture capital market, the presence of a professional and compelling founding team, combined with mature Fraunhofer technologies, is a powerful selling point. In the early post-launch phase, FFM helps supplement the team’s entrepreneurial skills with key management competencies. This can be achieved on a case-by-case basis through coaching the existing founding team or by expanding the team—for example, with the help of an initial manager. Up to €100,000 is available to the spin-off for this purpose.

This initiative gives Fraunhofer spin-offs the opportunity to access funding in a straightforward and flexible manner, enabling them to prepare well for the path to their first successful financing round. Thanks to a sophisticated system consisting of dilution protection and revenue preference, neither the balance sheet is worsened nor the company’s liquidity impaired. Thus, the FFM program is attractive to spin-offs, while the Fraunhofer Society still receives a corresponding return if the venture is successful.

 

Key Facts

  • All spin-offs with Fraunhofer involvement are eligible to apply for FFM funding.
  • The funding amount is paid directly to the spin-off in several installments, up to a maximum of 25 T€ per installment.
  • The Fraunhofer Society advances the funds to avoid straining the spin-off’s liquidity.
  • Interest on the funding amount does not accrue until 12 months after the funds are disbursed. There is no repayment deadline for either the interest or the principal amount.
  • The Fraunhofer Society receives corresponding consideration only upon a successful financing round, in the form of anti-dilution protection or a proceeds/liquidation preference.
  • Through mutually agreed-upon milestones and short-term contractual relationships, the funding can be tailored in a targeted and timely manner.
  • The existing founding team should be supported by external experts (e.g., strategy, sales, internationalization) or services (e.g., marketing, SEO).
  • The spin-off is the direct contractual partner of the coach/manager/CEO and selects them freely in consultation with the Fraunhofer Venture advisor.