FAQs – Silicon Allee at Fraunhofer HHI

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. Upon entering the program, you will be granted a non-exclusive license to a piece of HHI’s technology. Any IP developed over the course of the program will also be licensed to you non-exclusively, forever. If your startup raises at least €1 million in external funding, this new IP you’ve developed is exclusively licensed to you. If that funding milestone isn’t reached, you are still granted a non-exclusive usage to this IP but Fraunhofer HHI also retains the rights to further license it. Any previous IP developed independently by your startup is not affected and stays under your ownership.

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’re looking for technically strong teams. The ideal scenario is that all 2-3 core team members have technical experience, with at least one co-founder also having a commercial/business background. We also value industry experience – having at least one team member with relevant expertise in the startup’s sector makes your team even more compelling.

We provide funding in the form of paying paying for three full time salaries of your core team for 12 months. While we can’t provide direct investment, our financial support is worth up to €500,000 which includes salaries, office space, software, hardware, and all the benefits of a full-time employee of Fraunhofer HHI, i.e. holiday pay, sick days, travel and education budget. You will also able to hire up to 3 working students to support your startup.

The base salary for your core team of three is €70K/year brutto 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 team is hired by Fraunhofer HHI as full‑time employees. You’ll develop your core technology with access to Fraunhofer HHI labs, tools, and experts. You’ll receive startup guidance, investor prep, and team support from Silicon Allee. Together we aim to get you to the stage where you can raise €1M+ in venture capital.

Our goal is to help you raise €1M+ in venture capital, finalize your product-market fit, and set up a sustainable business model ready for scaling.

The process has four stages: an initial eligibility screening by our team, a review by our internal committee and then our Investor Advisory Committee. Short-listed startups will then be invited to showcase at an in‑person Department Demo Day at Fraunhofer HHI.

The entire process can take 3-4 months, depending on the complexity of your startup and the review process. Please take a look at our application roadmap for more detail.

Your core team of 3 will be hired as full-time employees at Fraunhofer HHI. This means you’ll need to commit full-time hours to your startup with all the commitments of a FTE.

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.