In accordance with the EU Commission's Guideline on State Aid to Promote Risk Financing (Risk Financing Guidelines), an ex-ante analysis is to be carried out on the "INVEST- Zuschuss für Wagniskapital" funding program in order to be able to extend the funding guideline and make potential adjustments. The purpose of this ex-ante analysis is to investigate and assess whether INVEST is suitable for addressing a potential market failure in the business angel market. This market failure would consist of young companies receiving too little capital supply to implement innovative projects or enter the market with a new product. The too low capital market supply would also prevent the creation of innovative companies.