kassailaw_menu_hamburger
kassailaw_menu_ikon_new_02
kassailaw_menu_ikon_new_02

Government Grants for Tech Startups

February 14, 2025

In the fast-paced world of tech startups, securing funding is one of the biggest challenges entrepreneurs face. While venture capital and angel investors often steal the spotlight, government grants offer a powerful alternative for startups looking to fuel innovation without giving up equity. Known as non-dilutive funding, these grants and subsidies can be a game-changer for early-stage companies.

In this article, we’ll dive into everything you need to know about government grants for tech startups, including available programs, eligibility requirements, and application tips, with a focus on regions like Europe and the Nordics.

What are these grants?

Government grants are funds provided by local, national, or international government bodies to support innovation, economic growth, and job creation. Unlike loans, grants don’t need to be repaid, and unlike equity financing, they don’t require you to give up ownership in your company. This makes them a form of non-dilutive funding, which is highly attractive for startups looking to retain control while scaling their operations.

These grants are often targeted at specific industries, such as clean energy, artificial intelligence, healthcare tech, or digital transformation. For tech startups, they can cover a wide range of expenses, including research and development (R&D), hiring, prototyping, and market expansion.

Why Should Tech Startups Consider Government Grants?

    1. Non-Dilutive Funding: Retain full company ownership while accessing the capital you need to grow.

    2. Validation and Credibility: Winning a government grant can enhance your startup’s reputation and make it easier to attract additional investors.

    3. Focus on Innovation: Many grants are designed to support R&D, allowing startups to focus on groundbreaking projects without immediate financial pressure.

    4. Access to Networks: Some grant programs provide mentorship, networking opportunities, and exposure to industry leaders.

Government Grants for Tech Startups in Europe and the Nordics

Europe and the Nordic region are known for their robust support systems for innovation and entrepreneurship. Here’s a breakdown of some key programs:

1. European Union (EU) Grants


Horizon Europe

    • Overview:
      Horizon Europe is the EU’s largest research and innovation funding program, running from 2021 to 2027 with a budget of €95.5 billion. It aims to drive scientific excellence, tackle global challenges, and boost the competitiveness of European industries.

    • Focus Areas: Horizon Europe is structured around three main pillars:
        • Excellent Science:
            • Supports fundamental research and talent development.
            • Key programs:
                • European Research Council (ERC): Funds cutting-edge research by individual scientists.
                • Marie SkĹ‚odowska-Curie Actions (MSCA): Supports researcher mobility and training. 

        • Global Challenges and European Industrial Competitiveness:
            • Addresses societal challenges and fosters industrial competitiveness.
            • Key clusters:
                • Health
                • Digital, Industry, and Space
                • Climate, Energy, and MobilityFood, Bioeconomy, Natural Resources, Agriculture, and Environment

        • Innovative Europe:
            • Focuses on scaling innovation and making Europe a global leader in technology.
            • Key programs:
                • European Innovation Council (EIC): Provides grants and equity investments for high-risk, high-impact innovations.
                • European Institute of Innovation and Technology (EIT): Supports innovation ecosystems through Knowledge and Innovation Communities (KICs).  

    • Types of Funding:
      Non-repayable grants for research, equity investments, and funding for collaborative projects.

    • Eligibility:
      Must be registered in an EU- member state or associated county, with goals aligning with EU strategic goals.

    • Application Tips:
      Identify the right programme through Horizon Europe Work and demonstrate your projects innovation, feasibility, and impact clearly.

Digital Europe Programme

    • Overview:
      Focused on digital transformation, this program supports projects in areas like cybersecurity, AI, and advanced digital skills.

    • Focus Areas:
      High-performance computing, AI, cybersecurity, and the digital transformation of public services.

    • Types of Funding: Funding for the development and deployment of digital infrastructure and services.

    • Eligibility:
      Funding for the development and deployment of digital infrastructure and services.

    • Application Tips:
      Build a strong consortium and prepare a detailed proposal.

2. Nordic Grants

Innovation Norway

    • Overview:
      This organization provides grants, loans, and equity financing to Norwegian startups. Their grants often focus on sustainability, technology, and international expansion.

    • Focus Areas:
      Green technology and sustainability, digital transformation, health tech, and ocean and maritime technology.

    • Types of Funding:
      Grants, innovation projects, loans, equity investments, and advisory services

    • Eligibility:
      Must be registered in Norway, and have a clear business model and market potential, with demonstrated financial stability.

    • Application Tips:
      Identify the right program with the help of their website, clearly articulate innovation, market potention, and impact.

Business Finland

    • Overview:
      Finnish startups can access grants for R&D, pilot projects, and international growth through this agency.

    • Focus Areas:
      Digitalization and AI, machine learning IoT, and digital services.

    • Types of funding:
      Grants for R&D, pilot projects, equity investments, and advisory services.

    • Eligibility:
      Demonstrate ability to manage funds and deliver results.

    • Application tips:
      Build a strong case, partner with universities, and emphasize how your project aligns with Finland’s strategic goals.

Vinnova

    • Overview:
      Vinnova is Sweden’s innovation agency, funding projects that strengthen Sweden’s competitiveness and contribute to sustainable development.

    • Focus Areas:
      Digital transformation, clean energy, health tech, and smart mobility.

    • Types of Funding:
      Grants for R&D, innovation projects, and collaborative initiatives between startups, academia, and industry.

    • Eligibility: Open to
      startups, SMEs, and larger companies, with a focus on innovative and impactful projects.

    • Application Tips:
      Clearly demonstrate the innovation and potential impact of your project. Collaborate with research institutions or other companies to strengthen your application.

Almi 

    • Overview:
      Almi is a state-owned company that provides loans, equity investments, and grants to Swedish startups and SMEs.

    • Focus Areas:
      Early-stage startups, tech innovation, and scalable business models.

    • Types of Funding:
      Pre-seed and seed funding, as well as grants for business development and international expansion.

    • Eligibility:
      Startups with a viable business plan and growth potential.

    • Application Tips:
      Highlight your team’s expertise, market potential, and scalability.

Tillväxtverket 

    • Overview:
      Tillväxtverket offers grants and support to startups and SMEs to promote regional development and innovation.

    • Focus Areas:
      Green tech, digitalization, and export-oriented businesses.

    • Types of Funding:
      Grants for market entry, innovation projects, and internationalization.

    • Eligibility:
      Startups with a clear plan for growth and impact.

    • Application Tips:
      Emphasize how your project aligns with regional or national economic goals.

Eligibility Requirements for Government Grants

While eligibility criteria vary by program, here are some common requirements:

    1. Innovation: Your startup must be working on a novel technology or solution.

    2. Stage: Some grants are for early-stage startups, while others target more mature companies.

    3. Location: Many grants are region-specific, so your startup may need to be based or operate in a particular country or region.

    4. Team: A strong, experienced team with a clear business plan is often a key requirement.

    5. Impact: Grants often prioritize projects with significant economic, social, or environmental impact.

Our Tips:

    1. Research Thoroughly: Identify grants that align with your startup’s goals and industry. Use government portals, innovation agencies, and grant databases to find opportunities.

    2. Prepare a Strong Proposal: Clearly articulate your project’s innovation, feasibility, and impact. Use data and case studies to support your claims.

    3. Meet Deadlines: Government grants often have strict application deadlines. Start early to ensure you have enough time to prepare.

    4. Leverage Local Support: Many regions have innovation hubs or consultants who can help you navigate the application process.

    5. Be Persistent: Grant applications can be competitive. If you’re not successful the first time, seek feedback and reapply.

If you would like to know more about the world of startups or have any questions regarding starting one, do not hesitate to contact us, or book a consultation with one of our colleagues by clicking here.

Imprint｜Privacy Policy｜Terms of Service｜
PRICING
Coming soon :)  
© 2024 KassaiLaw. All rights reserved.
who are we?
team
innovate with us
expertise
trace
startup toolkit
academy
MiCA
kassailaw_logo_header
kassailaw_icon_linkedin_white_40px
kassailaw_icon_facebook_white_40px
kassailaw_twitter_icon_X
kassailaw_spatial_icon_white_40px
kassailaw_icon_linkedin_white_40px
kassailaw_icon_facebook_white_40px
kassailaw_twitter_icon_X
kassailaw_spatial_icon_white_40px

Exciting developments
are underway at Kassailaw!
Our team of legal and technology experts is hard at work, preparing to launch a new and innovative way to access information and knowledge. This interactive platform will provide an immersive and engaging experience and we’re eager to share it with you.
Stay tuned!
🔥💡💻

“Is your team the dream team? How much percentage should each founder get?” One of the core ingredients to success is the right team with complementing skills and personalities: early stage investors (and business partners too, by the way) will invest in the team, not the idea. Our goal is to guide you in building a strong and well-functioning team, as well as help you uncover potential friction points or weaknesses in the team, so that you can address them in the very beginning. When it comes to the fair split with your co-founders, if you need a reference point, or just want reassurance, we have developed our own tool for equity split calculation. Hint: the one answer that’s certainly wrong is a hasty 50-50 split.

You have spotted a problem and found a viable solution – in other words, you have your idea. What’s the next step? You need to make sure that the problem your business is trying to solve is a valid problem for a wide enough group, and that

Are you sure that the problem your business is trying to solve is a valid problem for a wide enough group? 

When you spot a problem and think you have found a viable solution to create a business around, it’s all too easy to get excited and jump straight into ideating a solution.

Avoid making something and then hoping people buy it when you could research what people need and then make that.

It doesn’t make any sense to make a key and then run around looking for a lock to open.

There are many ingredients in the recipe for creating a successful startup, but most certainly whatever you read and wherever you go, one of the first pieces of advice is going to be to do your homework properly regarding the validation. You have to validate both your problem and your solution to be able to define the perfect problem-solution and later on the product-market fit. If you manipulate your future customers into liking your solution or do not reveal all the aspects and layers of a problem you identified, your idea can easily lose its ground and with that the probability of it surviving and actually being turned into a prosperous business. Let us know if we can help at this initial but yet super-important stage.

Validation is the first step in moving towards learning more about the problem you are ultimately looking to solve.

Finding your unique value proposition is only possible if you take a thorough glance at your competitors. The world of tech is highly competitive, particularly so when you operate in a field with low entry barriers, you need to carefully examine and regularly update the news and developments of those companies who act in the same field and market. This might lead to several pivots for you if necessary, because you can significantly increase your chances of success if you can offer a—at least in some aspect—unique solution to your customers. The introduction as “we are like Uber/Snapchat/WeWork/Spotify, only better” is hardly sufficient in most cases. Unless you really are so much better, but then you need to know that too, so up the competitive analysis.