One of the main concerns for any entrepreneur who wants to see their startup grow is how to find funding. Luckily, there are different options that can help you turn your project into a reality, but being aware of all of them can be complicated. Do you want to know how to get funding for a startup? At The Startup CFO we want to help you.
How to get funding for a startup
When considering how to obtain financing for your start-up business project, the first thing to be clear about is that the source of financing can be diverse.
For example, we could talk about private or bank financing, or, on the contrary, opt for public financing. In either case, accessing this aid can be complex because of the time involved in analyzing the options and carrying out the entire application process. Moreover, once financing has been obtained, it is crucial to know how to optimize it.
At The Startup CFO we have a public funding service for startups through which we ensure that you know all the possible funding alternatives to which you can apply and that you maximize the amount received. How do we do it? By analyzing your project in a personalized way through well-defined steps:
⦁ Our team will study the operation of your business and the different startup financing options you could apply for. With that information, we will be able to give you detailed indications on the amount to apply for and the chances of success of your request.
⦁ The next step will be the preparation, by us, of the report to be submitted for your application.
⦁ After the presentation of the report, we will continue to work with you to find the next support you might be eligible for: R&D&I grants, tax incentives, etc. There are so many options available beyond a first round of startup funding that we won’t just focus on trying to get a single grant.
Best public funding options for startups
As we have mentioned, at The Startup CFO we want to make it easy for you by helping you find all the possible startup funding alternatives that best suit your project and your goals. Among the possibilities we consider are the following.
Co-investment grants
These grants can complement your private startup funding round with public loans, in order to maximize the amount raised with less dilution. Some examples are:
ENISA
Enisa is a public entity that supports the creation and development of innovative companies with the capacity to propose a solid business plan. To this end, it offers participative loans to SMEs and startups without the need to present a guarantee, with several lines of support:
⦁ Young entrepreneurs. For entrepreneurs under 40 years of age with an innovative project less than 2 years old. The maximum amount of the aid is 75,000 euros.
⦁ Entrepreneurs. The age of the partners is not a requirement and, in this case, the maximum amount is 300,000 euros.
⦁ Growth. For projects interested in expanding or achieving a competitive improvement. The maximum amount is 1,500,000 euros.
⦁ Digital Entrepreneurs. For the promotion of female digital entrepreneurship. The maximum amount is also 1,500,000 euros.
IFEM
This is a joint financing with private investors in the form of a participative loan, the amounts of which can range from 50,000 to 200,000 euros per project.
It is aimed at innovative technology and/or science-based companies seeking to acquire financing for their project.
COFIDES
Financing of up to 70% for internationalization projects, anywhere in the world. Projects that can be financed include the acquisition of an existing company, the creation of a new business, the expansion of facilities or the opening of a commercial office.
Subsidies
We also present you the different non-refundable direct aids from entities of any level: local, regional, national or European. These include:
NEOTEC
One of the best known CDTI programs is NEOTEC, a funding for startups of new creation (more than 6 months and less than 3 years old), which require innovative technologies derived from research. The grant can reach 325,000 euros non-refundable.
Startup Capital
This aid is provided to early-stage startups based in Catalonia, for technological validation and market access. The startup would receive an advance of 80% of the aid, granted automatically and without having to provide guarantees.
Torres Quevedo
This is a non-refundable grant to hire a person with a doctorate. The maximum annual hiring is 55,000 euros and it is required to be a job in Spain, for an experimental development project, industrial research or technical feasibility study.
Partially refundable grants
The Startup CFO can also advise you on soft financing for startups with R&D&I projects, with non-refundable tranches and tranches that are refundable at 0% interest and with a large grace period:
⦁ PID: for R&D projects that have not yet been initiated, which will create or significantly improve a production process, product or service.
⦁ Red.es: this aid is part of the Acelera Pyme program and its purpose is to accelerate the technological development of companies.
⦁ LIC: supports projects that improve business competitiveness through the incorporation of emerging technologies in the sector.
Tax Lease and tax incentives
Did you know that it is possible to redeem up to 59% of what you spend each year on R&D&I and save 30% of your developers’ monthly social security costs?
To do so, we can consider different options depending on the characteristics of your startup, such as Tax Lease, tax deductions and bonuses.
Now that you have a better idea of how to get funding for your startup, are you ready to see it grow? At The Startup CFO we want to help you with the financial and strategic management you need to achieve your goals.
In addition to our consulting and management services, as you have seen, if you count on us we will advise you in a personalized way to find the best forms of public financing for your business. Together we will transform your ambitions into concrete and achievable realities.
