Start-up BW Pre-Seed: how Baden-Württemberg co-invests with your business angel

BW Pre-Seed is unusual: the state does not pick founders, it follows a credible private investor. You secure a lead Business Angel (or accredited VC or accelerator) first; the state matches their commitment. This filters out projects that can't attract private capital and dramatically simplifies the state's diligence - they leverage the co-investor's work.

The company's business location (Sitz oder Niederlassung) must be in Baden-Württemberg for the full funding period, and more than 50% of employees must be Baden-Württemberg-resident. Many founders relocate or open a BW branch office in advance - both are accepted. The €640k extension cap and any follow-on require the BW anchor to be maintained throughout.

L-Bank operates two selection rounds per year (~spring and autumn). From first contact with a coaching partner (Accelerator BW, Spin-off Lab, regional Gründerzentrum, or business angel network) to disbursement: 3-4 months. The application is filed jointly with the coaching partner who functions as warm introduction to L-Bank.

The instrument is structured as a Wandeldarlehen (convertible loan) at the same terms as the co-investor's investment. If the company succeeds, the loan converts to equity at the next priced round on the same conditions. If the company fails, the state's loss equals the co-investor's loss - true pari-passu economics. There is no separate state-board-seat or veto.