Translated from German to English - www.onlinedoctranslator.

com

Equity capital in North Rhine-Westphalia

Product overview
KBG start KBG growth KBG successor
NRW.BANK’s equity products
NRW.BANK

Equity capital in
target group Start-ups, young people Established growth-oriented Start-ups in business takeovers, Equity financing
Companies that are max. 2 companies that are at least 2 companies that want to regulate
years old years old their succession
Telephone + 49 211 91741-4800
Fax + 49 211 91741-1829
North Rhine-Westphalia

Status: 01/2023 · Edition: 01/2023

Participation volume €50,000 to €1,500,000 €50,000 to €1,500,000 €50,000 to €1,500,000
per company [email protected]

Participation projects Establishment and consolidation Financing investments, Purchase price for company nrwbank
costs for investments, warehouses, growth takeovers including necessary
warehouses, growth additional investments, payments
in connection with new
regulations regarding the group
of shareholders

Duration/Type 7 to 10 years 7 to 10 years 7 to 10 years

silent participation silent participation silent participation

Advantages - Advice and support - Advice and support - Advice and support
— No interference in — No interference in — No interference in
business policy business policy business policy Capital investment company NRW
— Loss participation in — Loss participation in — Loss participation in
Insolvency case Insolvency case Insolvency case Telephone + 49 2131 5107-0
— Attractive investment — Attractive investment — Attractive investment Fax + 49 2131 5107-111
conditions conditions conditions
[email protected]
— Repayment for — Repayment for — Repayment for
Nominal value Nominal value Nominal value
— Compared to loan — Compared to loan — Compared to loan
financing financing financing
liquidity-preserving liquidity-preserving liquidity-preserving
— No collateral — No collateral — No collateral
necessary necessary necessary
— Developing additional — Developing additional — Developing additional
financing options financing options financing options
— Access to a broad network in — Access to a broad network in — Access to a broad network in
North Rhine-Westphalia North Rhine-Westphalia North Rhine-Westphalia

requirements — Sustainable, future-proof — Sustainable, future-proof — Sustainable, future-proof

concept concept concept
— Sustainable market opportunities — Sustainable market opportunities — Sustainable market opportunities
— Personal guarantee from the — Personal guarantee from the — Personal guarantee from the
owner/partner; no other owner/partner; no other owner/partner; no other
security security security
— Company headquarters in North Rhine- — Company headquarters in North Rhine- — Company headquarters in North Rhine-

Westphalia Westphalia Westphalia

— Equity parity — Equity parity — Equity parity

— Complementary to — Maximum 75% — Maximum 50%
House bank financing financing share financing share
Equity capital in North Rhine-Westphalia Equity capital in North Rhine-Westphalia

Product overview
NRW.BANK wins Business Angel Initiative NRW.SeedCon NRW.SeedCap NRW.Venture NRW.BANK medium-sized companies fund NRW.BANK special funds

target group Start-ups, young companies, start-ups Innovative, growth-oriented companies in the early Innovative, growth-oriented companies in the early phase Young, innovative technology companies and young growth Established medium-sized companies with an attractive Established medium-sized companies
from universities stages up to 3 years after the company was founded up to 3 years and for follow-up financing up to 5 years after companies from the digital economy sector or with innovative technological or competitive position
the company was founded business models

Participation volume Usually €50,000 to €300,000 €50,000 to €200,000 €100,000 to €500,000 Initial investment €1,000,000 to €5,000,000 in €1,000,000 to €7,000,000 500,000 to 5,000,000 €
per company (through business angels) Multiple rounds of financing possible exceptional cases from €500,000
Investment possible over several rounds up to €15,000,000

Participation projects Foundings and early ones Investments and working capital to build and Investments and working capital to build and Support in the growth phase in setting up production capacities, Support, among other things, for growth investments, Support for companies that are in a special financing
Growth financing grow the company grow the company establishing and expanding sales, market launch, opening up sales market development, sales expansion, situation (turnaround, post-insolvency, restructuring)
markets and/or research and development as well as in the acquisition Succession planning, MBO/MBI and whose turnover is usually €15 to €200 million, but
of other companies, in exceptional cases also support in the seed a maximum of €500 million
phase

Duration/Type Advice/support/arrangement of 7 years Open participation Usually 3 to 7 years Usually 5 to 7 years Usually 3 to 7 years
business angel participation Subordinated, bullet convertible loan Direct minority shareholding or convertible loan Direct participation or mezzanine capital Open participation, in individual cases also mezzanine capital

Advantages — Realization of innovation potential — Fixed interest rate of 6% for the entire — Realization of innovation potential — Liquidity injection, credit rating increase — Individual contract design — Individual contract design
— Improvement of the equity ratio and the loan term of 7 years — Strengthening equity capital — Equity, also for the acquisition of funding or co- — Optional economic/balance sheet equity — Ensuring the future viability of the company
company rating — Collateral does not need to be provided by the — Entrepreneurial know-how of the co-investors (seed financing — Improvement of the company rating — Liquidity injection, credit rating increase
— Use of the NRW.BANK Business Angels start-up investor, ideally business angel) and their network — Attracting experienced investors — Expansion of the liability basis — Attracting investors and experts with experience in
Initiative network for capital and of contacts — Individual contract design — In the case of mezzanine financing, there is no change restructuring
coaching — Liquidity injection — Recourse to the network and know-how of NRW.BANK in voting rights and no provision of collateral — Maintaining healthy corporate structures
— Entrepreneurial know-how of the — Secure calculation basis based on long-term — Activation of private capital for restructuring
business angels and their financing
network of contacts — Expanding the scope in the area of debt
financing

requirements — Meaningful idea sketch — The company's headquarters, permanent — Companies for initial financing are not older than 36 — Sound planning — Positive sales and cash flow developments in the past — Overall viable business model
— Innovation with disproportionate establishment or branch is in North Rhine- months, follow-up financing is not older than 60 months — Depending on the business model, positive operating cash flow can usually be as well as future expectations — Restructuring process must be feasible within
growth potential Westphalia. — Based in North Rhine-Westphalia achieved in a maximum of three years — Convincing corporate concept the desired holding period
— Existing know-how in the core technical — The activities of another company were not — Support and financing from an experienced co- — Headquarters or economic focus in North Rhine-Westphalia — Attractive technology and competitive position — Headquarters or economic focus in North
competence taken over. investor — At least one other private investor also provides capital under the — Equity ratio of at least 10% before participation Rhine-Westphalia
— Entrepreneurial character, based — No winnings have been distributed yet. — Co-investor and NRW.BANK participate on the same conditions in at least the same amount — Headquarters or economic focus in North — At least one other private investor who was not
in North Rhine-Westphalia — Funding under this program is granted on the same terms Rhine-Westphalia previously involved in the company and has
basis of and in compliance with the restructuring expertise also provides capital on the
requirements of the General Block Exemption same terms
Regulation (GBER).