COVID-19: Support package for start-ups
In mid April, the Austrian federal government presented a COVID package for start-ups. The goal is to support Austrian start-ups that have run into financing and liquidity problems due to the COVID-19 crisis. The COVID start-up package comprises a support fund and a venture capital fund.
This article (originally dated 20 April) represents the information available to us on 14 May 2020.
COVID Start-up Support Fund
With this support fund, innovative start-ups (not older than five years) receive a subsidy on private investments that have been made since the outbreak of the COVID crisis. If a start-up company receives fresh equity capital or equity-like contributions from investors of at least EUR 10,000, these funds are doubled by a subsidy. This subsidy is to be repaid in the event of return. The subsidy amounts to EUR 50m and, together with private capital from investors, the total amount of support is EUR 100m.
Funding applications can be submitted online until 15 December 2020 via the aws “Fördermanager”.
Please note: When submitting your application, fulfilment of the innovation criteria, the conditions for fresh equity (investment contract and transfer voucher) and the fact that you are affected by the COVID 19 pandemic must be confirmed by the company’s tax advisor or auditor by signature.
You can find further information on: https://www.aws.at/aws-eigenkapital/covid-start-up-hilfsfonds/
Venture Capital Fund
The use of an aws capital guarantee is intended to lead to the mobilisation of additional risk capital. By means of a call for tenders, one or more private fund managements will be selected to set up a venture capital fund with an investment focus on Austrian start-ups which would have been able to conclude a financing deal if the crisis had not occured. In order to mobilise investors who have provided fresh money for these funds since the outbreak of the crisis, aws will provide a capital guarantee of up to 50% of the EUR 50m fund volume. The total framework of the capital guarantees is set at EUR 25m. The venture capital funds will invest in start-ups in order to better enable their delayed implementation of business models due to the crisis. An investment amount between EUR 200,000 and EUR 1m is planned per start-up.
The details of the venture capital funds will follow shortly, according to aws. Further information can be found at: https://www.aws.at/covid-paket-fuer-start-ups/?ref=topnews
Authors: Daniela Stastny, Cornelia Kalina, Alexandra Velic