Fraunhofer HHI takes approximately 10% in virtual equity for the 12‑month support period. If the partnership is extended beyond that, the percentage increases ~2.5% per additional quarter.
Virtual equity (or virtual shares) means Fraunhofer HHI doesn’t take real shares in your company, we don’t appear on your cap table and have no voting rights. Instead, it’s a contractual agreement: if your company exits, IPOs, or pays dividends, Fraunhofer HHI receives ~10% (which is diluted in future financing rounds) of the proceeds. If not, we don’t take anything. You stay fully in control, and we only take a share if your startup succeeds.
Your startup’s own IP remains fully yours. When joining the program, you receive a non-exclusive license to use the Fraunhofer HHI technology associated with your selected CORE Topic. Any IP developed during the program is licensed to your startup on a non-exclusive basis.
If your startup raises at least €1M in external equity funding at a pre-money valuation above €4M, the IP developed during the program is transferred or exclusively licensed to your startup, and the program concludes. All licensing fees are covered through the virtual equity structure. There are no additional license payments to Fraunhofer HHI.
We focus on startups aligned with Fraunhofer HHI’s core research domains: AI and machine learning, video and imaging, photonic networks and components (including quantum), wireless communications and networks. If you’re building outside these areas, we likely aren’t the right fit. Please check Fraunhofer HHI’s website to see if your tech matches.
Yes, you’ll need to have an MVP, a small team of 2-3 people, and ideally some early traction. We’re looking for startups that are ready to focus on building their technology and scale. If your idea is still in the early conceptual stage and doesn’t yet have these core components, it’s not the right time to apply.
Yes, as long as the funding is public or equity‑free (e.g. grants). Startups that have already raised private funding are not eligible (including convertible loans, SAFEs, etc).
Yes – one team member must be based full‑time in Berlin during the program. The rest of your team must be in Germany and able to attend demo days in Berlin four times a year.
Yes, your company must be registered and based in Germany for the support period.
We support early-stage deep tech startups that are building their product around one of our CORE Topics, which are based on Fraunhofer HHI research with strong commercial potential.
A strong fit means your startup uses the CORE Topic technology as a central part of its value proposition and competitive advantage. Teams should be mission-driven, technically strong, and committed to developing a scalable business on top of this research. Startups can also ‘Go off topic’ and apply outside of our CORE Topics, based on other Fraunhofer HHI technologies found in the Paper Pulse tool, provided the underlying research is no older than three years. These applications may take longer to review.
We provide support through comprehensive in-kind investment rather than direct cash funding. This includes hiring your core startup team as Fraunhofer HHI employees for 12 months, covering up to three full-time salaries for founders or early team members.
Depending on the needs of the startup, additional part-time or working student roles may also be supported. The overall support is valued at up to €500,000 and includes office space at Fraunhofer HHI, access to research infrastructure and labs, software and hardware resources, conference and event budgets, and the full benefits of Fraunhofer HHI employment, such as holiday pay, sick leave, and travel and education budgets.
The base salary for your core team is around €70k/year per person. You will enter the payroll as a full-time employee and receive salary payments on a monthly basis for the 12-month support period.
Your core team is hired by Fraunhofer HHI as full-time employees and works closely with the researchers behind the selected CORE Topic to develop the underlying technology into a strong competitive advantage. You’ll also receive startup guidance, investor preparation, and operational support from Silicon Allee.
If the startup raises a cumulative €1M or more in VC capital during the program, the company is considered self-sufficient and the employment contracts under the program are terminated in line with our framework.
Our goal is to help you raise €1M+ in venture capital, build a unique USP technology with the department, finalize your product-market fit, and set up a sustainable business model ready for scaling.
CORE Topics reflect the areas of technology where Fraunhofer HHI is seeing the most meaningful technical progress today. They are built directly on active research and highlight where new companies can be built with a strong technical foundation. Each CORE Topic opens a limited number of opportunities for startup teams to build directly on this research, working closely with the scientists behind it to translate it into scalable products and businesses. Startups with a clear connection to a CORE Topic can apply. New topics are announced on a rolling basis throughout the year.
Startups can also ‘Go off topic’ and apply outside of our CORE Topics, based on other Fraunhofer HHI technologies found in the Paper Pulse tool, provided the underlying research is no older than three years. These applications may take longer to review.
Yes. CORE Topics are intentionally focused and time-bound. Each topic opens a limited number of startup slots and remains active only while the underlying research is at the right stage for company building.Once all available slots for a CORE Topic are filled, the topic closes and we move on to new areas of focus. If a topic aligns strongly with what you’re building, timing matters.
The process has four stages: an initial eligibility screening by our team, a review by our internal committee and then an Investor Advisory Committee. Short-listed startups will then be invited to meet with us in person.
The entire process from applying to your first day at Fraunhofer can take 3-4 months, depending on the complexity of your startup and the review process.
Your core team will be hired as full-time employees at Fraunhofer HHI and is expected to work full-time on building a startup based on the selected CORE Topic. Applicants may apply while employed elsewhere. If accepted, founders must transition to working full-time on the startup as Fraunhofer HHI employees, with a defined transition period to leave their previous role.
Unlike traditional tech transfer offices, we don’t take big equity stakes upfront or tie founders up with restrictive terms. Instead, we keep the structure clear: we don’t take equity until you have an exit, don’t take control over your company, and have a fair process for IP transfer once your startup raises funding.
Our unique support combines world-renowned research and technical resources from Fraunhofer HHI with practical startup building guidance. We provide you with the tools, resources, and network that other programs can’t, to turn your startup into a defendable deep tech business.
A strong application includes a clearly communicated concept through your pitch deck, this is the key document we use to assess your startup. Find out how to build a winning pitch deck with this guide.
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