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The Founder Challenge 2026 for a sustAInable future, is initiated and organized by encourageventures e.V. The Mercedes-Benz Fonds supports the Challenge as a donor and strategic supporter. The Challenge empowers the next generation of diverse founder teams at the intersection of AI, impact and sustainable innovation. 

The Challenge brings together diverse-founded European startups and innovators with a strong community of angel investors, industry leaders and experts. 

Together, encourageventures e.V. and the Mercedes-Benz Foundation unlock the full potential of diverse founder teams who combine AI-driven, tech-for-good, and impact-oriented solutions with

• technological excellence, 
• sustainable and ecological innovation, and 
• a deep commitment to societal progress. 

The program supports entrepreneurs with bold ideas – from early-stage concepts to ready-to-scale ventures – and enables them to transform their solutions into viable, future-ready businesses.  

Our joint mission: to strengthen diverse leadership in technology, expand access to early-stage capital, and accelerate business models that deliver measurable value for society, the environment and the economy. 

What the Challenge offers 

The Founder Challenge 2026 highlights and supports outstanding teams led by at least one woman in the executive leadership team. Finalists gain visibility, access and the opportunity to present their solutions to: 

• angel investors from the encourageventures e.V. network, 
• executives from Mercedes-Benz and the Mercedes-Benz Foundation, 
• experts from AI, impact, sustainability, and science. 

From all submissions, an expert jury will select 9 finalists on 30. September 2026, across the categories Idea, StartUp and ScaleUp. 

Pitch Night & Award Announcement

At the Pitch Event on 11. November 2026, the finalists present their innovations to a high-level audience. The jury will then announce the three Award winners, one per category.

The Award – Categories & Prizes 

At the heart of the Challenge stands the Award, honoring diverse founders who demonstrate outstanding entrepreneurial excellence across three maturity levels — reflecting how founders bring AI x Impact innovation from idea to execution to scaling. 

The jury will select nine finalists (three per category) and identify one winner in each category at the Pitch Event on 11. November 2026. 

Rules & Conditions

The timeline

The prizes

What support will the Finalists receive?

All nine finalists receive access to a mentoring and training program designed to prepare them for the Pitch Night. This includes input in areas such as:  

• leadership & team building 
• sales excellence 
• impact measurement
• fundraising preparation
• pitch, storytelling & Q&A excellence 

The program equips each finalist with the skills, clarity and confidence needed for successful investor conversations and the final stage appearance. 

What the winners receive

Each of the category winners of the Award will receive: 

• tailored mentoring from encourageventures e.V. and industry experts 
• high-level visibility and the opportunity to pitch directly to leading 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 

Who can apply?

You are eligible to apply if you  

• are an early-stage or growth-oriented entity based in the European Union (EU), the European Economic Area, Switzerland or the United Kingdom. 
• are a diverse founding team with at least one female founder holding at least 20% of the founding shares – or female single founder. 
• offer an AI-driven and tech-for-good solution that contributes to social, ecological and economic sustainability – in alignment with the UN SDGs. 
• are at one of the three eligible maturity levels (category fit): 
  • Idea – from vision to concept
  • StartUp – from prototype to proof of concept
  • ScaleUp – from execution to expansion
    Note: Pre-Seed and Seed stage entities apply in the StartUp category. Entities that have raised Series A apply in the ScaleUp category.
• Female leadership on stage: A woman from your founding or executive leadership team must be available to pitch at the event on November 11, 2026.

What do we need from you?

To complete your application for the Founder Challenge 2026, please prepare and upload the following materials: 

• Your pitch deck 
  Include your AI thesis, impact logic and key elements of your business model (as referenced in the official challenge description). 
• A short description of your solution 
  Clearly outline the problem you address, your AI-driven and tech-for-good approach and the expected impact.
• Upload both documents using the submission form 
  Please submit all materials via the application form provided on the website. Click here. 
• Review the official rules here
  For details on eligibility, categories, selection criteria and the evaluation process, please read the official rules and FAQ before submitting. 

The Three Award Categories 

The jury will select nine finalists (three per category) and identify one winner in each category at the Pitch Event on 11. November 2026, in Stuttgart  

Idea

Idea – From Vision to Concept

This award recognizes 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. It celebrates original thinking, clarity of purpose, and the ambition to turn a vision into a viable impact-driven solution. 

Startup

From Prototype to Proof of Concept 

This prize honors early-stage ventures that have moved beyond ideation. Startups in this category demonstrate:

• validated problem–solution fit, 
• early technological or business model traction, and 
• measurable environmental, social or economic value. 
• They show how AI can drive sustainable transformation at the beginning of their entrepreneurial journey. 

Scale Up

From Execution to Expansion 

This award highlights growth-stage companies with proven market performance, strong execution capability, and impact-driven scalability. These ventures demonstrate how AI-based innovation can scale responsibly, aligning with the UN SDGs and delivering lasting societal benefit.