For AI software, the innovation threshold is now higher than for the Forschungszulage. What matters is what goes beyond expected AI development.
BayTOU
Up to 45% grant for technology-oriented startups in Bavaria.
BayTOU supports development and concept projects by young technology companies in Bavaria.
How much funding could you receive?
Indicative calculation using the applicable highest rate.
45 % × €333,333 = €150,000
Estimated funding
€150,000
Development projects have a maximum rate of 45%.
Which key figures apply to BayTOU?
| Development projects | up to 45% of eligible costs, 25% base rate plus 20 points for small companies |
| Software companies | maximum grant of €150,000 |
| Concept projects | up to 35%, maximum €26,000, €52,000 in exceptional cases |
| Minimum grant | €15,000 |
| Eligible applicants | younger than 6 years, fewer than 10 full-time equivalents including management |
| Location | carried out in Bavaria |
Updated: September 2026. Source: Official program page
Who it really fits
Good fit
- ✓Founders and technology-oriented companies less than 6 years old
- ✓Fewer than 10 full-time equivalents including management
- ✓The project is carried out in Bavaria
Not a fit
- ×Projects outside Bavaria
Process and timeline
- 01
Initial consultation
with the Bayern Innovativ project agency
- 02
Project outline
description of the project
- 03
Assessment
with coordination by the Ministry of Economic Affairs
- 04
Full application
review takes around 6 to 8 weeks
- 05
Decision
total duration in our experience is 6 to 12 months
The project can start at your own risk after the full application has been submitted.
What we see in practice
The effort required for the application is comparable to the Forschungszulage.
The project agency works pragmatically, but the process takes time.
Common pitfalls
You must demonstrate your own contribution in the application. BayTOU never finances the entire project.
BayTOU cannot be combined with ZIM.
Always submit the application before the project starts.
Which questions do we hear most often?
In our experience, the full process takes 6 to 12 months. The review of the full application takes around 6 to 8 weeks.
The application must be submitted before the project starts. The project can start at your own risk after the full application has been submitted.
Development projects receive up to 45% of eligible costs. For software companies, the grant is capped at €150,000. Concept projects receive up to 35%, capped at €26,000 and €52,000 in exceptional cases.
Does BayTOU fit your project?
In the intro call, we check company age, location and degree of innovation.