Securing funding is a crucial step in turning an early-stage idea into a viable business. Across Europe, a wide range of startup grants is available to support innovation, sustainability and job creation. These grants can help cover essential costs like research, product development and market expansion, offering founders a valuable financial boost without giving up equity. Understanding the grant landscape and how to navigate the application process is key to unlocking these opportunities.
What Is a Startup Grant?
An amount of money awarded to a new company by a public or private organisation to support its early operations and expansion is known as a startup grant. A gift has no repayment requirements, in contrast to a loan. Grants usually have restrictions on how the funds may be used and are given out according to certain standards pertaining to the industry, region, or social impact of the company.
Why Do EU Grants Matter For Startups?
One of the most effective funding sources for early-stage innovation is EU grants. Applying and receiving an EU grant for your startup means you don’t give up equity, you can get a grant with quite a lump sum and some grant programs are open to international founders.
Common Mistakes To Avoid When Applying for a Startup Grant In Europe
Grant applications follow many of the same guidelines, especially when it comes to market sizing and financial predictions. Steer clear of these and other typical fundraising errors that could ruin your application:
- Applying to the wrong grant
- Submitting low-effort or generic responses
- Not reading the call text carefully
- Weak budget justification
- Ignoring the impact or gender sections
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How Can I Apply For a Startup Grant In Europe?
You must find pertinent funding possibilities, comprehend eligibility requirements and submit a compelling proposal through the proper channels in order to qualify for startup grants in Europe. Here’s a more general breakdown of the application progress:
Research the Different Startup Grants
The first thing you need to do is take a look at the different startup grants and choose the one that will suit your business best. You need to take a look at things like the eligibility requirements to make sure your startup business is eligible.
Gather the Required Documents
The next step is to collect some supporting documentation to send with your business plan. Financial accounts, statistics from market research and proof that your company is registered are a few examples of such documents. However, it’s important to keep in mind that the supporting documentation required will vary depending on the kind of grant you’re applying for.
Apply For the Grant
Depending on the kind of grant you’re applying for, the startup grant application may change. Fill out the application completely, then send it in with your supporting documentation and business plan. After that, you must await permission.
What Are the Different Types Of Startup Grants In Europe?
Not all grants are created equal. Here are the major types of startup grants in Europe:
EIC Accelerator
Startups and SMEs with ground-breaking ideas are supported by the European Innovation Council’s (EIC) EIC Accelerator grant and equity investment program. It offers equity investments and non-dilutive capital. Successful applicants are granted access to Business Acceleration Services, which include networking opportunities and mentorship, in addition to financial support.
Horizon Europe
With a €95.5 billion budget, Horizon Europe is the European Union’s primary research and innovation funding initiative. It runs from 2021 to 2027. It provides funding for studies in a range of disciplines with the goals of addressing global issues, fostering innovation and fortifying the European Research Area.
Cascade Funding
The European Commission uses a system called Cascade Funding, also called Financial Support to Third Parties (FSTP), to disburse public funds to support researchers, SMEs and startups, especially through initiatives funded by the EU. It entails an intermediary entity overseeing the funds and allocating them to qualified organisations for particular projects, frequently centred around sustainability, digital innovation, or other important topics.
ERC Grants
The European Research Council (ERC) offers a series of competitive financing programs called ERC Grants that are intended to assist outstanding academics in all areas of European research. The foundation of the Horizon Europe framework program, which emphasises scientific quality, is made up of these awards.
