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Luxembourg start-up support and acceleration

Luxembourg’s attractive Fit 4 Start programme offers start-ups 6 months of coaching, funding of up to €150,000, free access to co-working space and valuable networking opportunities in Luxembourg. The programme is open to start-ups in the ICT, healthtech, space and high performance computing sectors. Start-ups can apply from anywhere in the world, but need to incorporate in Luxembourg if they are selected.

Innovative start-ups may also be eligible to apply for a young innovative enterprise subsidy provided by the Ministry of the Economy.

Equity

Several Luxembourg equity funds invest in start-ups and technology-intensive small and medium-sized enterprises (SMEs). The Luxembourg Future Fund invests in early and late stage innovative European technology SMEs with a particular focus on ICT, cleantech and other technology sectors (excluding healthtech and life sciences). The Digital Tech Fund provides financing for start-up companies with a Luxembourg strategy. Special focus is on investment in cybersecurity, fintech, big data, digital health, media and next-generation communication networks, digital learning, the internet of things, telecommunications and satellite services.

R&D and innovation subsidies

Companies with substantial activities in Luxembourg can benefit from advantageous R&D and innovation subsidies. The Luxembourg Ministry of the Economy offers co-funding for the following types of projects:

 

Grants can vary from between 25 % and 80% of the project cost. The national innovation agency, Luxinnovation, helps companies determine whether their innovation and research projects are eligible for State aid, provides explanations on how to prepare high-quality funding applications and offers guidance in setting up public-private partnerships.

European grants

Companies located in Luxembourg can also benefit from European funding programmes such as Horizon Europe, the EU framework programme for research and innovation all the way from fundamental concept to market uptake. EU funding for international research collaboration is also available under the EUREKA, IraSME and ECSEL programmes. Luxinnovation provides explanations on how to prepare high-quality project proposals and offers guidance in setting up international partnerships.

Luxembourg government loans

State investment bank SNCI specialises in medium and long term financing of Luxembourg-based companies and their projects. SNCI’s financing instruments are investments in fixed assets, innovations and exports. SNCI also grants start-up/transmission loans to newly incorporated or inherited SMEs and may also finance investments of Luxembourg companies abroad.

Businesses that decide to locate to Luxembourg can count on additional support which helps innovative companies and venture capitalist fund managers to find investment and funding in Luxembourg.

Export credit

Luxembourg Export Credit Agency (Office du Ducroire) provides support for Luxembourg-based companies when trading abroad. It offers financial incentives in order to efficiently promote products and services abroad. Once this path accomplished, companies may secure export credit insurance.

Private equity in Luxembourg

The Luxembourg Business Angel Network (LBAN) aims to match private investors with scalable and disruptive start-ups and support private investors in developing their investment skills. It develops and manages a strong community of private investors and supports partnering with relevant players of the local and international start-up ecosystem.

The Luxembourg Private Equity and Venture Capital Association (LPEA) represents, promotes and protects the interests of private equity companies and venture capitalists in Luxembourg. With 240 members, the LPEA plays a leading role locally and actively promotes private equity and venture capital in Luxembourg and abroad.

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