Seed Funding for Startups: Germany, Austria & Switzerland
- Jörn Menninger
- Mar 10
- 5 min read
Updated: 5 days ago
Seed funding marks the first institutional capital a startup receives after bootstrapping, grants, or friends-and-family rounds. Across Germany, Austria, and Switzerland, the seed landscape includes specialized venture capital funds, government programs, angel networks, and increasingly, convertible instruments like SAFE notes. Germany's HTGF (High-Tech Gründerfonds) is the most active seed investor in the region, managing EUR 500 million across its fourth fund. This page maps the seed funding ecosystem by country, key investors, and the instruments used.
In Short
Seed rounds in the DACH region typically range from EUR 0.5–3 million, with pre-seed rounds at EUR 50,000–250,000. Germany's HTGF leads with over 800 companies funded since 2005. Switzerland's Redalpine manages CHF 500 million across venture stages. Austria's aws Gründerfonds provides government-backed seed capital. Convertible instruments, particularly SAFE notes and German-adapted variants, are increasingly common at pre-seed and seed stages.
Executive Summary
Seed rounds in the region typically range from EUR 0.5 to 3 million, with pre-seed rounds at EUR 50,000 to 250,000. Germany's HTGF is the most active seed investor, managing EUR 500 million across its fourth fund with a sweet spot above EUR 800,000 per investment, having financed over 800 companies since 2005. Cherry Ventures (Berlin) focuses on pre-seed and seed with typical checks of EUR 0.5–3 million. In Switzerland, Redalpine manages CHF 500 million and invests from seed through growth. Austria's aws Gründerfonds provides government-backed seed capital with typical investments of EUR 100,000–800,000. Convertible instruments, particularly SAFE notes and their German-adapted variants, are gaining traction across the region.
Key Takeaways
DACH seed rounds typically range from EUR 0.5–3 million, with pre-seed at EUR 50,000–250,000 — smaller than US equivalents but growing steadily.
HTGF (High-Tech Gründerfonds) is the region's most active seed investor: EUR 500 million fourth fund, 800+ companies funded since 2005, sweet spot above EUR 800,000.
Cherry Ventures (Berlin) focuses on pre-seed and seed with EUR 0.5–3 million checks, while Redalpine (Zurich) manages CHF 500 million across venture stages.
Austria's aws Gründerfonds provides government-backed seed capital (EUR 100,000–800,000), complementing the angel ecosystem coordinated by invest.austria.
Convertible instruments including SAFE notes and German-adapted variants are increasingly used at pre-seed and seed stages across the region.
Seed Stage by Country
In Germany, seed rounds typically range from EUR 0.5 to 3 million. HTGF leads the market with investments above EUR 800,000 across digital tech, industrial tech, life sciences, and chemistry. It operates as a semi-public fund with government mandate and corporate LPs. Cherry Ventures in Berlin focuses on pre-seed and seed with typical checks of EUR 0.5–3 million. In Switzerland, seed rounds range from CHF 0.5 to 3 million. Redalpine, headquartered in Zurich, manages CHF 500 million and invests from seed through growth stages. In Austria, aws Gründerfonds provides government-backed seed capital with typical investments of EUR 100,000–800,000, operating alongside the angel ecosystem coordinated by invest.austria.
Convertible Instruments and Deal Structures
Convertible instruments are gaining traction in the DACH seed market. SAFE (Simple Agreement for Future Equity) notes, originally developed by Y Combinator, have been adapted for German and Swiss legal frameworks. These instruments allow startups to raise capital quickly without establishing a valuation, converting to equity at a discount during a subsequent priced round. German-adapted variants address specific requirements of GmbH corporate law. Pre-seed rounds increasingly use these instruments, while priced equity rounds remain more common at the seed stage proper.
Government Programs and Public Funding
Government programs play a significant role in DACH seed funding. Germany's HTGF operates with a government mandate and corporate LP base. The INVEST grant (administered by BAFA) reimburses angel investors 20% of their investment. Austria's aws provides both direct seed funding through Gründerfonds and co-investment alongside business angels. Switzerland's Innosuisse (formerly CTI) provides innovation grants that complement private seed capital. These public programs reduce risk for private investors and bridge the gap between university research and commercial viability.
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Frequently Asked Questions
How large are seed rounds in the DACH region?
Seed rounds typically range from EUR 0.5 to 3 million across Germany, Austria, and Switzerland. Pre-seed rounds are smaller at EUR 50,000–250,000. These amounts are growing but remain smaller than US seed rounds on average.
What is HTGF and why is it important for seed funding?
HTGF (High-Tech Gründerfonds) is Germany's most active seed investor, managing EUR 500 million across its fourth fund. Since 2005, it has financed over 800 companies across digital tech, industrial tech, life sciences, and chemistry. It operates as a semi-public fund with government mandate and corporate LPs.
Are SAFE notes used in the DACH startup ecosystem?
Yes, convertible instruments including SAFE notes are increasingly used at pre-seed and seed stages. German-adapted variants address specific GmbH corporate law requirements. These instruments allow startups to raise capital quickly without establishing a valuation, converting to equity during a subsequent priced round.
What government seed funding programs exist in the DACH region?
Key programs include Germany's HTGF (semi-public seed fund) and INVEST grant (20% angel reimbursement), Austria's aws Gründerfonds (EUR 100,000–800,000 direct seed investments), and Switzerland's Innosuisse innovation grants. These public programs reduce risk for private investors and bridge the gap between research and commercial viability.
About the Host
Jörn "Joe" Menninger is the host of the Startuprad.io podcast and covers founders, investors, and policy developments across the DACH startup ecosystem. With years of experience reporting on German-speaking startups, he provides independent, English-language analysis of the trends shaping venture capital and innovation in the region.
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