Non-dilutive innovation funding for R&D projects in Berlin
Pro FIT Berlin is one of the most important instruments for non-dilutive funding at regional level in Germany. It is designed to support research and development projects that involve technological risk and a clear path toward economic use, without requiring founders or shareholders to give up equity.
The program is administered by Investitionsbank Berlin (IBB) on behalf of the Land Berlin and forms a central pillar of Berlin’s innovation policy. It is particularly relevant for startups and SMEs with English-speaking management teams who are building or scaling technology-driven products in Berlin and are unfamiliar with the German public funding landscape.
This article focuses exclusively on Pro FIT Projektfinanzierung. Other instruments within Pro FIT, especially early-Frühphasenfinanzierung, are mentioned only to clarify the distinction.
Pro FIT Berlin as non-dilutive funding
In the German funding system, Pro FIT Berlin is clearly positioned as non-dilutive public funding. This means that companies receive financial support without selling shares or giving up control, unlike venture capital or private equity financing.
Pro FIT Project Financing combines two public instruments:
a grant that does not have to be repaid and a government-backed loan that is typically provided without bank-style collateral. Together, these instruments are intended to reduce innovation risk and make ambitious R&D projects financially feasible.
For many companies, Pro FIT does not replace private financing entirely. Instead, it complements equity or revenue-based financing by covering the most risky innovation phases and improving overall financing structures.
What Pro FIT Project Financing actually funds
Pro FIT Project Financing is strictly project-based innovation financing. The funding decision is not based on the company alone, but on a clearly defined research and development project.
Eligible projects typically involve:
- industrial research or experimental development
- new or significantly improved products, processes, or services
- preparation for production and market introduction
The project must go beyond the current state of the art and involve technological uncertainty. Incremental improvements or purely operational activities are generally not sufficient. The economic exploitation of the results is an essential part of the assessment, even though funding focuses on the R&D phase itself.
Early clarification: Project Financing vs. Early-Stage Financing
Within Pro FIT Berlin, Projektfinanzierung and Frühphasenfinanzierung follow fundamentally different logics. This distinction is critical for international founders.
Frühphasenfinanzierung under Pro FIT is company-oriented. It targets very young technology startups, focuses on early stabilization, and is limited by strict age and eligibility criteria. Funding volumes are comparatively smaller, and the emphasis is on building the company rather than executing a specific R&D project.
Pro FIT Projektfinanzierung, by contrast, is entirely project-oriented. Company age is not the decisive factor. What matters is the quality, innovation level, and feasibility of the project. As a result, Project Financing is accessible not only to startups, but also to established SMEs, larger companies, and research institutions.
In practice, Pro FIT Projektfinanzierung is not solely startup aid. It is public R&D project financing.
Who Pro FIT Project Financing is for
Pro FIT Projektfinanzierung is open to a broad range of applicants operating in Berlin. This includes startups, small and medium-sized enterprises, larger companies, and research institutions.
The key eligibility requirements are a registered seat or substantial operational presence in Berlin and a clearly defined innovation project that can be technically and economically justified. Applicants must be able to demonstrate their own financial contribution and accept a share of the project risk.
Both individual projects and collaborative projects are possible, provided that project costs are clearly attributable and documented.
Funding structure, amounts, and duration
Funding under Pro FIT Project Financing is granted as a combination of a grant and a loan within one funding decision.
The grant component can reach up to EUR 500,000 per project, depending on project structure, company size, and state aid limits. In addition, a government-backed loan of up to EUR 1,000,000 per project may be granted. The loan is typically unsecured and structured on a case-by-case basis.
Projects usually run for up to 24 months, although the exact duration depends on the technical content. Funding is generally paid retroactively based on cost reports. Only expenses incurred after application submission are eligible, unless early project start has been explicitly approved.
There is no legal entitlement to funding. Each application is assessed individually.
Funding rates and company size
Funding intensity under Pro FIT Projektfinanzierung depends on company size, project phase, and innovation risk, in line with EU state aid rules.
Small enterprises can generally achieve higher funding rates than medium-sized or large companies. Industrial research is funded more intensively than experimental development, reflecting higher technological uncertainty. Cooperative projects or collaborations with research institutions may further influence the funding rate, provided that all legal ceilings are respected.
The final funding rate is determined during the assessment process and is always project-specific.
Application process and assessment
Applications for Pro FIT Projektfinanzierung are submitted directly to IBB through a structured procedure. They include a detailed project description, a cost and financing plan, and information about the applicant company.
The assessment combines a technical evaluation of innovation and feasibility with a commercial review of financial capacity. IBB may involve external experts who are bound by confidentiality. The final decision is made by a funding committee acting on behalf of the Land Berlin.
IBB Pro FIT Projektfinanzierung Financing in the German funding landscape
Within public funding in Germany, Pro FIT Projektfinanzierung occupies a strategic position at regional level in Berlin. It is often used alongside federal instruments such as ZIM or the Forschungszulage, but it differs in structure by combining grants with government-backed loans and by focusing strongly on Berlin-based innovation projects.
For founders and managing directors, Pro FIT offers a way to finance high-risk innovation phases without equity dilution, while maintaining strategic flexibility and ownership control.
Strategic support and the role of NDF
NDF takes over the full structuring and execution of the funding application, allowing founders to focus on their core business. By drawing on extensive experience from a large number of successfully approved cases and AI-supported analysis trained on real funding decisions, NDF structures projects and applications in line with typical reviewer logic and formal requirements. The client’s contribution is limited to providing targeted technical and business expertise where it is essential for project substance.
NDF does not decide on funding outcomes and does not provide guarantees. Responsibility for project content, financing, and implementation remains entirely with the applicant.
When Pro FIT Projektfinanzierung makes sense
Pro FIT Project Financing is particularly relevant for companies developing technology-driven solutions in Berlin that involve substantial R&D risk and require financing beyond purely private sources. For many startups and SMEs, it is one of the most effective ways to combine innovation grants, government-backed loans, and financing without equity dilution in a single funding structure.
