The funding for young innovative companies is targeted at the most promising start-ups in Finland. The funding supports growth and globalisation of companies. Tekes will adopt the renewals at the beginning of 2015. The changes are due to reforms in EU regulation on government support for businesses. The renewals will be adopted in a manner that best benefits Finnish start-ups.
The renewal concerns the age of the company and the model of funding. From the start of 2015, the funding for young innovative companies can be allocated to innovative companies established less than 5 years ago when previously the limit was 6 years.
In the new model, a company can be awarded EUR 500,000 in grant and 750,000 in loan. As a combination of grant and loan, the maximum total amount of funding is EUR 1.25 million. Previously, the funding consisted of a grant of EUR 1 to 1.25 million, depending on the domicile of the company. Now, the size of the support is the same for all companies. The requirement of R&D investments will be reduced from the current 15 per cent to 10 per cent, and the restrictions concerning other public support will be abolished, which means even more flexibility for companies.
"The funding for young innovative companies will be more flexible than before and will provide significant financing for the best start-ups. Overall, Tekes' mandate for granting support in general is shifting towards loans, which is why we are now also offering loan as part of the funding for young innovative companies,” says Jukka Häyrynen, Director, Young Innovative Companies.
The funding for start-ups will also be strengthened by Tekes Venture Capital Ltd that will begin investments in funds investing in early-stage growth companies later this year. Häyrynen also points out that companies that have received the funding for young innovative companies have a good capacity for collecting private capital, increasingly also from abroad.
The new model will become effective at the start of 2015, but to receive funding under the old terms, the companies must seek funding by latest on 15 October.
Director Marjo Ilmari
tel. +358 50 5577 668
Director Kristiina Laurila
tel. +358 50 5577 780