The purpose of Frankfurter Gruenderfonds is to support start-ups companies with up to five years of existence in Frankfurt / Main. The Wirtschaftsfoerderung (Economic Development) GmbH Frankfurt, a subsidiary of the city of Frankfurt, provides financial means for a guarantee funds.
The Buergschaftsbank (Guarantee Bank of Hesse) GmbH issues the guarantee certificates. Frankfurt School Financial Services GmbH (FSFS) as service provider supports high-quality business concepts, checks potential founders wanted to participate in this program and recommends applicants for a guarantee certificate based on a rating and an additional evaluation. FSFS further coordinates the activities of the cooperating partners to support the start-ups business activities in Frankfurt / Main and finally manages the funds.
The business concept of the Frankfurter Gruenderfonds is based on the result of a study conducted by Frankfurt School of Finance & Management to support business start-ups companies in Frankfurt / Main area. Founders with capital needs up to EUR 50.000 should be supported by providing them with collateral in form of guarantees. The Frankfurter Gruenderfonds as a guarantee funds model provides the structure for this purpose.
FSFS evaluates potential founders and start-ups companies that are eligible to participate in this program, recommends them to receive a guarantee promise and provides regular client checks to those clients that received a loan for their business. In order to do so, FSFS entered into cooperation contracts with eight partner banks of the program. The Guarantee Bank of Hesse GmbH provides operational service and issues the guarantee certificates. In case of a default of a loan, FSFS initiates the recovery of the money. Recovered money is added back to the funds.