Topic 2: Local Funding for start-up
Cyprus:
https://www.businessincyprus.gov.cy/doing-business-in-cyprus/getting-your-business-funded/
- Research and Innovation Foundation (RIF)
The two major activity pillars of RIF activities are the following:
- The development and management of national research, technological development and innovation programmes in Cyprus;
- The promotion of Cypriot research organisations, enterprises, and researchers in European and other international research and innovation programmes.
The RIF organizes training and awareness-raising activities, represents Cyprus in European and other research and innovation committees, working groups, networks and initiatives, implements studies, and submits suggestions to the relevant authorities for further research and for the development of policy initiatives.
- Industry and Technology Service
The Industry and Technology Service (part of the Ministry of Energy, Commerce and Industry) manages and distributes funds under a variety of programmes. Recent examples include:
- Enhancing SME competitiveness in the manufacturing sector and other specific economic activities;
- Women’s entrepreneurship;
- Youth entrepreneurship;
- Manufacturing / marketing / development of agricultural products;
- Encouraging investment activity and enhancing competitiveness in the wine industry;
- Strengthening business innovation.
Assistance for entrepreneurs can also be found through the Ministry of Agriculture and the Cyprus Agricultural Payments Organisation, which manages and distributes grants for the primary sector.
Spain:
Empresa Nacional de Innovación (ENISA): https://www.enisa.es/es/financia-tu-empresa/lineas-de-financiacion
ENISA is an entity of the Ministry of Industry, Trade and Tourism, which grants financial support to SMEs through shareholders’ loans. It has 5 lines of action, each of them focused on specific targets:
- Digital entrepreneurs: targeted on digital projects with female participation (at least one woman must hold a share of the company), mostly regarding the very first phases and international expansion
- Young entrepreneurs: targeted to SMEs and Startups owned by entrepreneurs under 40 y/o
- Entrepreneurs: targeted to general SMEs and entrepreneurs with innovative projects and “clear competitive advantage”
- Growth: Targeted to projects that aim to grow on a bigger scale, increasing its capacity
- Agropush: Targeted on the agroalimentary sector, focused on digital transformation in rural areas.
Programa Activa Startups: https://www.eoi.es/es/empresas/programas-activa/activa-startups
It is a programme funded by the Ministry for Industry, Trade and Tourism, and managed by Fundación de la Escuela de Organización Industrial (EOI). The funding is provided in the form of grants, and it is provided to SMEs and startups, giving priority to digital transformation and circular economy projects.
Fond ICO – Next Tech: https://www.ico.es/web/axis/fond-ico-next-tech
Public – Private fund managed by the Instituto de Crédito Oficial (ICO) and the Secretary of State for Digitalization and Artificial Intelligence. Help is provided in the form of loans. It is targeted to digital projects, and more specifically to deep tech (robotics, nanotechnology, artificial intelligence…) and food tech projects.
ICO offers several funding programmes and opportunities, but they are only accessible through the private entities conforming to the Institute. Therefore, they are considered private funding rather than public.
INNVIERTE Programme: https://www.cdti.es/programa-innvierte
It is funded by the Ministry of Science and Innovation, and managed by the Centro para el Desarrollo Tecnológico e Industrial (CDTI), a dependent entity. The financial support is granted in the form of both loans and grants, depending on whether there is private collaboration or not. It is focused on R&D projects and the SMEs operating in that sector.
Greece:
- The European Structural and Investment Funds (ΕΣΠΑ) of the European Union provides programmes for different businesses with funding and it is widely used in Greece. https://www.espa.gr/el/Pages/procsimsea.aspx
- The governmental agency Hellenic Manpower Employment Organization (Δημόσια Υπηρεσία Απασχόλησης) offers different funding opportunities focusing on different groups (minorities or unemployed people). https://www.dypa.gov.gr/
- HDBI – Hellenic Development Bank of Investments (HDBI, ex TANEO) supports the Greek innovative start-up ecosystem with several programmes. https://hdbi.gr/en/
- People can also search for funding through banks in Greece. Most banks have funding programmes, such as the 360° FUNDING programmeoffered by Piraeus Bank. (https://www.360funding.gr/#)
Romania:
- Regional business angels’ association that organises pitches for funding (50K-100K EUR): https://growceanu.com
- Small startup investment (grants) scheme from the Regional Development Agency of Western Romania (20K-50K EUR): https://proiecte.pnrr.gov.ro/#/home
- Large startup investment (grants) scheme from the Regional Development Agency of Western Romania (up to 200K EUR): https://adrvest.ro/sprijin-pentru-microintreprinderi/
- New European Bauhaus Accelerator for Widening Countries and for Impactful/Socially oriented startups: https://eit.europa.eu/our-activities/opportunities/supporting-socially-conscious-innovators-introducing-new-european
Netherlands:
Sources:
Start up funding from the government
There are several types of government funding opportunities for startups, such as:
- Innovation credit
- Dutch Good Growth Fund (DGGF)
- Financial support for self-employed professionals (Bbz)
Use the Startup Box
The Startup Box is an online tool that helps you to identify if there is a Dutch government funding instrument suitable for your startup. For many entrepreneurs, government funding is hard to navigate, while financing is often difficult to find. The Startup Box explains what you need and what you can expect.
The Startup Box is an initiative of the Ministry of Economic Affairs and Climate Policy, StartupDelta (now TechLeap.nl), Netherlands Chamber of Commerce KVK and Netherlands Enterprise Agency.
Business angels (private investors)
Business angels are private individuals who invest in businesses from a purely business-related perspective. They’re often referred to as private or informal investors.
- How do business angels operate?
A business angel generally invests in pre-start-ups, start-ups, and entrepreneurs in their early growth phases. Investments usually range between €50,000 and €750,000 in the form of a loan or in exchange for ownership equity. Business angels operate as individuals, in networks or in funds.
- Individual angels
Business angels like these invest on their own behalf. They are wealthy individuals who tend to regularly invest in entrepreneurial ventures with their own money, in sums typically ranging from at least €25,000 to over €1 million, and sometimes even more.
- Angel networks
Business angels that are part of an angel network can invest individually. However, they have the added advantage of working collectively in the screening process and reviewing deals, having the option of investing in new ventures together. In the Netherlands, there are several angel networks that are united through the networking organisation Business Angels Networks (BAN) Netherlands. They also have a European and International branch. However, access to their website is restricted – if you would like to contact them, you are advised to do so through your bank or accountant.
- Angel funds
In an Angel Fund, business angels pull their resources together but act as one investor. This means they jointly decide on each investment; no individual investments are made. By doing so, each venture that receives funding will receive a much larger sum. Being able to pull capital resources together is beneficial because it prevents the entrepreneur from needing to seek further outside financing from other sources, such as venture capitalists. This ensures that angel investors will reap a greater return on their investment.