Participation Principles of IBG Beteiligungsgesellschaft Sachsen-Anhalt mbH – Open Pari Passu Participations and Market-Compliant Conversion Measures (No State Aid)

IBG Beteiligungsgesellschaft Sachsen-Anhalt mbH targets technology-oriented small and medium-sized enterprises (SMEs) in Saxony-Anhalt. The program aims to strengthen the equity base of these companies and ensure long-term growth paths.

The IBG Participation Principles support a wide range of projects for technology-oriented SMEs, from the research and development phase to prototype development, market launch, and growth financing. The program aims to promote innovative projects that involve new technologies or internal research and development.

IBG offers open participations to strengthen the equity base of technology-oriented SMEs. The amount of participation can be up to 10 million Euros, with open participations generally designed as minority stakes of up to 25 percent of the capital. The conditions are individually regulated by contract with the participant.

Several prerequisites must be met for a successful application, including the submission of a qualified business plan and the fulfillment of technological criteria. Special regulations apply regarding the application of state aid law and the assumption of fees by the applicant.

Applications for open pari passu participations with IBG Beteiligungsgesellschaft must be submitted in writing using the forms provided by IBG. Despite fulfilling the requirements, there is no legal entitlement to approval.

The IBG's participation principles are based on an internal guideline from December 2021 and are designed not to constitute state aid within the meaning of the EU definition, by applying market-compliant conditions ('pari passu'). They refer to several EU regulations and communications regarding the SME definition and state aid law.

The program places particular emphasis on the competitiveness and market opportunities of the products, processes, or services resulting from the project.