How we work

Although we are not a profit-oriented foundation, it is our objective to realize the best and highest return of the incubator's assets and resources. As such, we allocate and invest the resources in projects and start-ups that will support our objectives in the best possible way.

We distinguish three different phases:

(1) Pre-Incubation and Evaluation phase
(2) Incubation Phase
(3) Post-Incubation Phase

Pre-Incubation and Evaluation Phase

The main focus of this phase is to evaluate the feasibility of the project, the relevance of the business concept and the potential market acceptance. The evaluation process usually take three to six weeks, the length of the approval process is largely dependent on the preparedness of the prospective company. For further details see Pre-Incubation and Evaluation process.

Incubation Phase

During the incubation phase FONGIT works closely with the start-up team, supporting them in their venture, offering - infrastructure and - "hands-on" support, however, not "life-support". FONGIT’s "hands-on" business managers assure:

- the mentoring and coaching
- the networking
and are also involved in the business development of the company.

These three cornerstones help clients overcome the barriers to start-up and growth/survival and accelerate their development. FONGIT may also become a member of the Board of Directors of the company.
The overriding aim is to move the start-ups to a point where they are no longer dependent on the services of FONGIT. Therefore, after a period of normally two years the start-up has to leave the incubator.

Since the offered infrastructure, services and the coaching/incubation are charged at very low prices, FONGIT assumes an up to three percent equity in every new company. Additionally, FONGIT may also invest in the company.

Post-Incubation

After the incubation period of normally two years the start-up leaves the incubator. The start-up may stay in proximity at the CTN-building but can choose its new location freely. Usually, the start-up keeps a close relationship with FONGIT. The equity may be sold to the start-up company or not and is largely subject of negotiation.