Applying for Public Funding: Berlin Startup SectorPi Supports SMEs and Startups

For many startups and SMEs, public funding still feels like an opaque bureaucratic jungle. At the same time, it can be a decisive lever for innovation and growth. This is exactly where SectorPi comes in: the Berlin-based startup helps companies identify suitable funding programs for research and development and successfully apply for them, supported by an AI-powered platform and personal consulting. In this interview, Victoria Hoffmann explains why public funding is not a short-term solution for liquidity problems, what companies should look for when choosing funding consultants, and why the right time to apply often comes earlier than many entrepreneurs think.

Victoria, how would you describe what SectorPi does in an elevator pitch?

We are a funding consultancy with a strong technology focus. We support SMEs and startups that develop innovative products, methods, and processes in applying for public funding. To do this, we have developed an AI-powered platform and combine our own technology with professional expertise and personal support from our team.

How does this process work in practice?

The “funding jungle” is highly complex and confusing for many companies. That is why we support the entire process, from identifying suitable programs all the way to receiving the funding.

Companies can approach us as soon as they have a project idea, but also if they have already developed an innovative product, method, or process and would like us to secure funding retrospectively.

We begin with a free, non-binding initial consultation. During this conversation, we assess whether the company is generally eligible for funding and identify potentially relevant development projects. We then conduct a free project analysis to determine which funding programs are suitable for the specific project. In many cases, the german “Forschungszulage” is the most suitable funding instrument. It is technology-neutral, can also be claimed for research and development projects that have already started or even been completed, and creates a legal entitlement to funding if all requirements are met. This makes it particularly relevant for many companies.

If our analysis shows that submitting an application is worthwhile, we take over the entire process. We prepare the required documentation and supporting evidence and guide our clients through all subsequent steps until the funding is paid out.

That sounds great. But how does your own business model work?

The market model is primarily success-based: if an application is approved, we receive a percentage of the granted funding amount as our fee.

We are particularly proud that among the 150+ companies we currently work with, we have maintained a success rate of 100%.

Does that mean companies that are planning or already implementing innovations can fully finance their projects through public funding?

No—and this is where education is particularly important.

Under the “Forschungszulage”, roughly one-third of project costs can be reimbursed. Under some other programs, reimbursement may amount to around two-thirds. But here comes the important caveat: costs can only be reimbursed retrospectively.

This means that public funding does not solve a liquidity problem. Companies must initially finance their projects themselves. However, they have good chances of recovering a substantial portion of these costs later on.

The only exception is the EXIST program for university-based startups, where advance financing through public funding is possible.

What else distinguishes the “Forschungszulage” from other funding programs?

One important aspect is that companies are legally entitled to receive the “Forschungszulage” if their projects meet certain requirements.

All other funding programs involve competition with other applicants.

Timing is also crucial. If development work has already begun, the “Forschungszulage” is usually the only remaining option. For all other funding programs, it is important that project managers contact us as soon as the idea has been defined. No development costs must have been incurred yet.

Who are your clients, and how do they find you?

Our clients are companies with a registered office or operational presence in Germany. They include both startups and established medium-sized businesses. A selection of our clients can be found on our website, such as Bling, Climedo and Zefyron.

So far, most of our clients have come to us through referrals—particularly through our network and existing customers. We have not had to rely on traditional cold outreach. However, as part of our ambitious growth plans, we intend to expand our sales activities strategically.

What challenges do you encounter in your work?

We regularly deal with complex situations that require careful professional assessment. One example is objection and appeal procedures when an application is initially rejected.

Companies often approach us after receiving a negative decision following either a self-prepared application or one prepared with the help of another external consultant.

In these cases, we systematically review the existing documentation, identify technical or formal weaknesses, and rebuild the argumentation in a targeted manner. Our clients benefit from our experience in handling demanding application and review processes.

Another challenge is that the terms “funding consultant” and “funding expert” are not legally protected in Germany.

This makes it all the more important, in our view, to provide professional, transparent, and realistic consulting services: carefully assessing eligibility, preparing documentation thoroughly, and communicating clearly about opportunities, requirements, and next steps.

When should companies become cautious?

A particularly important point is that projects may not receive double funding.

Companies should therefore carefully review which funding programs have already been applied for or approved and whether individual projects, cost items, or project periods overlap. Otherwise, significant legal and financial risks may arise.

In our view, it is equally important that consulting services are transparent and realistic.

It can also be helpful to ask for an introduction to existing clients. This provides an opportunity to learn how the process actually worked in practice—from the initial assessment and application process to ongoing communication throughout the procedure.

Another important aspect is the consultant’s fee structure.

Companies should carefully check whether a commission is based on the actual funding amount granted or on the eligible project costs. Eligible costs refer to the total recognized project expenses, while the resulting funding is usually only a percentage of those costs.

If the commission is calculated based on eligible costs, the consultant’s compensation can be significantly higher.

So the rule is simple: always read the fine print.

Is there anything you would like to leave our readers with?

Yes. We repeatedly see startups addressing funding either too early—when financing for product development has not yet been secured—or too late, when they already know they only have a few months of liquidity remaining.

The best time to think about public funding is actually when you do not urgently need it—for example, shortly after successfully closing a financing round.

At that stage, companies have sufficient liquidity to pre-finance their projects and can typically benefit from a cash injection six to twelve months later. This can significantly extend their runway without requiring them to give up any equity.

Contact

Website: SectorPi

LinkedIn: Victoria Hoffmann