Founder Challenge 2026 for a sustAInable Future –
initiated by encourageventures e.V.
supported by Mercedes-Benz Fonds

Driving more diversity, innovation and impact

in Europe’s startup and investment ecosystem

Official Rules – Founder Challenge 2026

Preamble

The following rules, terms and conditions (the “Official Rules”) govern your entry to and participation in the ‘Founder Challenge 2026 for a sustAInable Future’ (the “Contest”). Your participation in and submission of an entry to the Contest constitutes your acceptance of, and agreement to be bound by, these Official Rules. If you agree to these Official Rules on behalf of a startup or any other valid entity (defined in Section 3 below), you represent and warrant that you have the authority to bind the startup to these Official Rules and your agreement to these Official Rules will be treated as the agreement of said startup. In that event, unless otherwise indicated, “you” and “your” herein refers to that startup. In the following, the term “startup” shall include any other entity as well.

NO PURCHASE OR PAYMENT NECESSARY. VOID WHERE PROHIBITED.

The Initiator may update these Official Rules at any time if required (e.g., due to changes in event format). Updated rules will be published on the Contest Site (LINK).

1             Initiator and Supporter

The initiator and organizer of the Contest is encourageventures e. V., with its registered offices as published on www.encourage-ventures.com (“Initiator”).

The Mercedes-Benz Fonds acts as a supporter and donor of the Contest, with its registered offices as published on www.mercedes-benz-fonds.com (“Supporter”). The Supporter provides financial and strategic support to the Contest but does not act as a sponsor, organizer, contracting party or operator of the Contest.

The Initiator is solely responsible for the concept, organization, administration, execution and communication of the Contest, including but not limited to the application process, selection procedures, jury coordination, mentoring program and event implementation.

The Supporter does not assume operational responsibility or legal liability for participation, selection or evaluation of applicants, except where required by mandatory law.

The Initiator and the Supporter are hereinafter jointly referred to as the “Initiator / Supporter” solely for descriptive purposes, unless explicitly stated otherwise.

2             Dates and Timeline

2.1           Contest Period

encourageventures e.V.’s systems serve as the official time reference for the Contest. All times are provided in Central European Time (CET). The Contest begins on 1. März 2026, at noon CET and ends upon the conclusion of the Founder Challenge 2026 for a sustAInable Future, Finalist Pitch Night (the “Summit”) (the “Contest Period”). The Contest Period is comprised of the submission period followed by two (2) periods of judging, as further described below in Sections 2.2 and 2.3. 

2.2           Submission Period

The “Submission Period” begins on 1. März 2026, at noon CET and ends on 30. Juni 2026, at 11:59am CET. Please see Sections 5 et seq. for further information on the submission process.

2.3           Judging Period

The “Judging Period” begins on 30. Juni 2026, at noon CET and ends on 30. September 2026. It consists of two rounds: 1) the pre-judging round from 30. Juni 2026, at noon CET to 15. September 2026, at noon CET and 2) the finalist round ending 30. September 2026, at noon CET.

Please see Section 6 for further information on the judging process.

2.4           Finalists Announcement

The finalists will be announced on 30. September 2026. The preparation phase starts on 1. Oktober 2026, and lasts until the summit. During this period, the finalists will be coached for their pitches.

2.5           Pitch Event

The Pitch Event constitutes the final stage of the Contest and serves as the basis for the jury’s final evaluation and the announcement of the category winners.

The Initiator reserves the right to adjust dates or timelines if necessary.

3             Eligibility

3.1           Eligible Geographic Area

The Contest is open exclusively to entities incorporated and headquartered within the following territories (the “Eligible Geographic Area”):

• Member States of the European Union (EU)
• Member States of the European Economic Area (EEA), namely Iceland, Liechtenstein and Norway
• Switzerland
• United Kingdom

Entities based outside the Eligible Geographic Area are not eligible, even if they are geographically located in Europe or part of other European or international cooperation frameworks

3.2           Eligible Entities

Eligible applicants are startups or early-stage entities within the Eligible Geographic Area that fall into one of the following categories:

• Idea (From Vision to Concept)
• StartUp (From Prototype to Proof of Concept)
• ScaleUp (From Execution to Expansion)

Applicants must:

• operate an AI-driven and tech-for-good business model that contributes to social, environmental, and economic sustainability – in alignment with the UN SDGs.
• demonstrate a clear commitment to sustainable innovation, diversity, and measurable impact.
• comply with all applicable laws in their jurisdiction.

3.2.1        Diverse Leadership Requirements

Applicants must have at least one female founder or female executive leader, with a minimum of 20% equity or strategic leadership authority. This person will represent the team during the pitch event.

3.2.2        Funding Status and Stage Definitions

For this Contest, the following stage definitions apply:

• Pre-Seed refers to the very early stage of a startup focusing on problem validation, concept development and early prototyping.
• Seed refers to startups that have developed a minimum viable product (MVP) or prototype and are validating product–market fit, often with early customers, pilots or revenues.
• Series A refers to growth-stage companies that have demonstrated product-market fit and are scaling their business model, team and market presence.

Category assignment (funding status):

• Idea: No external venture capital funding required.
• StartUp: Pre-Seed or Seed stage. Startups must not have raised Series A funding prior to 30. Juni 2026.
• ScaleUp: Series A stage. Funding beyond Series A is not permitted.

3.2.3        Exclusions

The following are not eligible to participate:

• individuals/sole proprietorships,
• employees or close relatives of employees of the Initiator or the Supporter
• entities owned or operated by such employees,
• jury members or their immediate family members,
• startups managed by system integrators/consultancies.

4             Categories

Submissions must fit one of the three official categories. Each category reflects both the maturity of the business and its funding stage, as defined in Section 3.2.2 (Funding Status & Stage Definitions).

4.1           Idea (From Vision to Concept)

This category is designed for early-stage teams who identify a meaningful social or environmental challenge and propose a bold, AI-driven concept with clear potential for future market relevance.

The focus is on:

• originality and strength of the idea,
• clarity of the problem addressed,
• plausibility of the proposed AI-based solution, and
• early validation such as research, mock-ups, prototypes or first user feedback.

A fully developed product is not required.

Funding alignment:
Startups in this category must be an idea or in the very early pre-seed stage and must not have raised external venture capital funding.

4.2           StartUp (From Prototype to Proof of Concept)

This category addresses early-stage ventures that have moved beyond ideation and are actively validating their solution.

StartUps in this category demonstrate:

• a validated problem–solution fit,
• early technological feasibility or business model traction,
• initial customers, pilots or early revenues, and
• measurable social, environmental or economic impact.

These ventures show how AI-driven innovation can deliver sustainable transformation at the beginning of an entrepreneurial journey.

Funding alignment:
StartUps in this category must be at the Pre-Seed or Seed stage and must not have raised Series A funding prior to 30. Juni 2026.

4.3           ScaleUp (From Execution to Expansion)

This category is intended for growth-stage companies that have demonstrated market validation and are scaling their operations.

ScaleUps in this category are characterized by:

• proven product–market fit,
• growing customer base and revenues,
• strong execution capabilities and scalable structures, and
• impact-driven growth aligned with the UN Sustainable Development Goals (SDGs).

These ventures demonstrate how AI-based solutions can scale responsibly and deliver lasting societal, environmental and economic benefits.

Funding alignment:
ScaleUps in this category must be at Series A stage. Funding beyond Series A is not permitted.

5             How to Enter

5.1           Application & Submission

Applications must be submitted via the official application form on the Contest website within the Submission Period.

Required materials:

• a complete company profile, including name, email address, phone number, title, country of incorporation of the startup
• pitch deck that summarizes the problem for which the StartUp provides a solution incl. AI thesis, impact logic, key elements of their business model
• short description of your solution and the competitive advantage

• team philosophy statement (purpose, responsibility, diversity, vision)
• a narrated demo video of up to three (3) minutes that is an on-screen reporting in MP4 format showing the business idea
• completed online application form

5.2           Language

All materials must be in English.

5.3           Number of Entries

One entry per startup; duplicates will be disqualified.

5.4 Entry Requirements

Applicants warrant that all materials:

• are complete
• are original and rights-cleared,
• contain no confidential or proprietary third-party information,
• do not infringe applicable intellectual property rights,
• contain no harmful or unlawful content.

The Initiator may remove or disqualify any non-compliant entries.

5.4           Participation Requirements

Applicants must confirm their ability to participate fully in all Contest phases, including:

• screening
• jury evaluation
• mentoring & training sessions
• final pitch event
• optional communication or visibility formats related to the Contest.

6             Selection & Judging

6.1 Screening Committee (Round 1)

Applications are reviewed by a screening committee appointed by the Initiator based on:

• idea quality
• AI/tech innovation
• impact potential
• team strength
• feasibility & traction

Up to 10 startups per category may be shortlisted.

6.2 Jury Evaluation (Round 2)

• a jury composed of representatives from Mercedes‑Benz, encourageventures e.V., academia and the European startup/investment ecosystem will evaluate entries.
• selection criteria include: innovation & technical excellence, business/impact potential, team capability to execute, scalability, sustainability, and alignment with the “diverse founder” mission. This mission is explained in Section 3.2.1 above.
• the jury’s decisions are final and binding.

7             Finalists & Winners

• From the pool of applicants, a set number of finalists will be invited to the next phase.
• Finalists may be required to make a live pitch presentation.

Finalists will be announced on 30. September 2026, and participate in a mentoring and preparation program.

One winner per category (Idea, StartUp, ScaleUp) will be announced at the Pitch Event on 5. November 2026.

8             Prizes & Support

What the Winners Receive

The winners of the Award in each category will receive:

• tailored mentoring from encourageventures e.V. and industry experts
• high-level visibility and the opportunity to pitch directly to important angel investors, corporate decision-makers, and the broader innovation community – including the chance for finalists to present their business to top-tier business angels with the option of investment
• access to partner networks, potential pilot collaborations, and long-term support from encourageventures e.V.
• a prominent stage at the Founder Challenge 2026 Pitch Event to present their impact-driven innovation

The Initiator in alignment with the Supporter may define additional awards (Idea, Innovation, Impact).

9             Rights, Licenses & Use of Material

• All IP remains with the startup.
• Applicants grant the Initiator the right to use submitted materials and allow the Initiator to share such materials with the Supporter for communication and reporting purposes.
• Applicants must ensure that their submission does not infringe on any third-party rights.

10        Confidentiality & Data Protection

• The Initiator will act as the primary data controller and handle personal data in accordance with applicable data-protection laws and the privacy policies of the Initiator. The Supporter may receive anonymized or aggregated information only.
• Entrants acknowledge that submitted materials may be disclosed to jury members and sponsors.

11        Disqualification, Modification or Cancellation

• the Initiator reserves the right to disqualify any applicant who fails to comply with these rules, provides false information, or engages in misconduct.
• the Initiator may modify or cancel the competition (in whole or part) at their discretion (if conditions change, due to number of applicants, etc.).

12        Communication with Applicants

The Initiator will communicate with applicants primarily via the email address provided in the application form.

12.1     Notification of Non-Selected Applicants

Applicants who are not selected during the Screening Phase or Jury Evaluation Phase will be notified via the email address provided in the application form. The Initiator is not obliged to provide individual feedback or justification for selection decisions.

12.2     Notification of Finalists

Finalists will receive written notice via email on or after 30. September 2026.
Communication will include:

• instructions regarding next steps,

• the invitation to participate in the Final Pitch Event,
  • information on timelines and participation requirements (e.g., mentoring, pitch training, etc.),
  • requests for additional information or documentation.
• details on coaching, preparation sessions, and event logistics,
• visibility and media-related requirements (e.g., consent for filming or press activities).

The Initiator may publicly announce finalists through their respective communication channels.

12.3     Notification of Winners

Winners will be informed during the Founder Challenge 2026 Pitch Event and will additionally receive notification by email afterward.
This communication may include:

• confirmation of the Award
• further steps for mentorship, partner introductions, and investor opportunities
• administrative or contractual requirements related to the Award.

Applicants are responsible for ensuring that their contact details remain accurate throughout the Contest Period.

13        Legal & Other Terms

• These rules are governed by German law.
• Any disputes arising out of or in connection with these rules shall be resolved exclusively by competent courts in Germany.
• By participating, entrants accept these rules in full.

14 Severability

Invalid provisions shall be replaced by valid ones approximating economic intent.