ZOHO Factory: Pioneering partnership for innovation

Sparkasse supports ZOHO Factory with 2.4 million euros

Valuable support for startups and founders: The Stadt- und Kreissparkasse Erlangen Höchstadt Herzogenaurach bank is entering into a pioneering partnership with Friedrich-Alexander-Universität Erlangen-Nürnberg (FAU) and ZOLLHOF tech incubator. Sparkasse is to provide ZOHO Factory Erlangen with a total of 2.4 million euros in funding. Together with the “Startup Factories” initiative launched by the Federal Ministry of Economics, the aim is to considerably boost the start-up dynamics in the region. Working in close collaboration with first-class local research institutions and local companies, the ZOHO Factory is set to become a startup epicenter with its influence spreading out across the region and beyond.

Using the potential for innovation in the region

“Innovation is the driving force in our region,” stressed Prof. Dr. Joachim Hornegger, FAU President, during the signing of the declaration of intent for the partnership at FAU Campus Erlangen South, formerly the Siemens campus, in the south of Erlangen. “Erlangen is one of the most innovative cities in Germany, and FAU is the most innovative university in Germany, as various rankings have proven. We have an excellent entrepreneurial ecosystem here.” The partnership between Sparkasse and ZOHO Factory will expand this ecosystem even further. The Free State of Bavaria has purchased part of the Siemens campus for FAU, stated Prof. Hornegger. He explained that the FAU Innovation Space will be set up there in the next one and a half years. As announced by Johannes von Hebel, Sparkasse will offer advice for startups in the future FAU Innovation Space.

Johannes von Hebel, CEO of Stadt- und Kreissparkasse Erlangen Höchstadt Herzogenaurach also talked of a “partnership that is not commonplace” when signing the declaration of intent. Sparkasse has agreed to support the ZOHO Factory, that will also have premises in Erlangen, with a total of 2.4 million euros. A total of 200,000 euros will be invested in the Tech Space and company scholarships respectively, and two million will be donated to the venture fund. These are the three central pillars of the ZOHO Factory. “We have great trust in the innovation potential of the region,” stressed Johannes von Hebel.

Global players and renowned academic institutes

The ZOHO Factory, a joint project between the ZOLLHOF tech incubator and FAU, represents this potential for innovation. The ZOLLHOF tech incubator, founded in Nuremberg in 2017, is one of the most rapidly growing startup hubs in Germany. In recent years, it has supported more than 100 startups, of which approximately 70% have proven successful in the long term. “ZOLLHOF is a significant pillar in the startup ecosystem, both in our region and beyond,” according to Benjamin Bauer, CEO of the ZOLLHOF tech incubator. Since 2017, the startups launched via ZOLLHOF have acquired more than 300 million euros of external capital. In the last twelve months, the ZOHO Factory has already acquired funding amounting to 15 million euros. According to Bauer, the aim is to collect a further five million euros by the end of April 2025.

Compared to other areas in Germany, the Nuremberg Metropolitan Region is in a very good position insofar as strength in innovation is concerned. A major role is played by global players such as Siemens, adidas, Puma and Schaeffler. In addition, there are also a number of successful startups from various sectors that have been founded in the Nuremberg region. These include “World”, one of whose founders is Sam Altman, DesignOffices and Roboyo. With FAU, Coburg University and the universities of Würzburg and Bayreuth, the region also has renowned academic institutions that conduct research into and develop groundbreaking technologies.

Opinions from political representatives

Erlangen’s mayor Dr. Florian Janik praised the initiative: “We are creating a unique infrastructure for innovation.” He is aware that the greatest difficulty facing startups is often financing. He is pleased that the Sparkasse has provided risk capital, proving that they believe in the future of the funded projects.

County mayor (Landrat) Alexander Tritthart mentioned the large number of successful and creative companies that have close contacts to FAU across the entire Erlangen-Höchstadt district with its 25 cities and municipalities. He believes that they will also benefit from the collaboration. “Our district is very interested in encouraging startups,” stressed Alexander Tritthart. “It is good to see that Sparkasse is also thinking of SME’s.” The decision to support the ZOHO Factory was taken unanimously in the administrative board of the Sparkasse.

Dr. German Hacker, the mayor of Herzogenaurach, said, “A seed has to be sown before an innovative idea can start to take shape.” The collaboration between the ZOHO Factory and the Sparkasse will set the region in good stead to continue nurturing a great many pioneering ideas and startups. “For this reason, we from the administrative board of the Sparkasse were very happy to agree to the proposal.”

Further information:

Benjamin Mair
Board of directors / press spokesman
Stadt- und Kreissparkasse Erlangen Höchstadt Herzogenaurach
Phone: +49 9131 824 1200
benjamin.mair@sparkasse-erlangen.de