To secure the funding of startups, the grant of the Covid Startup Aid Fund can be applied for. This doubles equity investments by up to EUR 800,000.
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In the current corona crisis, startups in particular can run into financing and liquidity problems. Financing through venture capital is particularly difficult in the current situation. With the Covid startup aid fund, these companies receive targeted support. It is a grant for private investments.
This means that if a startup receives fresh equity or equity-like deposits from investors of at least 10,000 euros, these funds are doubled by grants up to a maximum of 800,000 euros. The grants only have to be repaid if they are covered by an annual surplus for the next ten years. The application is made online, unbureaucratically, via the aws funding manager.
Accurate support
“Startups are financed differently than older companies. That is why you need your own auxiliary instruments, where the state and the private sector work together. Because only in this pair run can we succeed in keeping the start-up ecosystem vital and competitive, and it is precisely this ecosystem that we need when the economy starts up again, ”said Economics and Location Minister Margarete Schramböck.
“It’s about preventing an economic crisis. With the Covid Startup Aid Fund, we want to support particularly young, innovative companies that are internationally successful in terms of sustainability and climate protection. In this crisis situation, we can also make a contribution against the climate crisis, ”said Climate Protection Minister Leonore Gewessler.
Part of the startup package
With a volume of up to EUR 100 million, the Covid startup aid fund is a central element of a startup package that was presented by the German government. Because the effects of the corona crisis hit the startups particularly hard. Delays in production and development, but also interruptions in supply chains and the uncertainties in entire industries such as tourism, pose new challenges for these innovative companies.
Their form of venture capital financing is particularly difficult under these conditions. To support this, a separate venture capital fund is set up in addition to the Covid startup aid fund. In addition, the funds for aws seed financing to support innovative startups were increased by the Ministry of Climate Protection by EUR 4.4 million.
“The startup package can help many Austrian startups to deal with the corona crisis. Without appropriate measures, both jobs and private and public capital already invested could be lost. The Covid Startup Aid Fund, together with private capital, is intended to provide startups in the pre-seed and seed stage with urgently needed liquidity. I hope that this will also provide important investment incentives for private investors, especially business angels, ”says start-up representative Michael Altrichter.
Combination with other aid
To support the Austrian economy, the Austrian federal government immediately established a € 38 billion aid package. The aws bridging guarantee plays an important role here. This instrument gives companies the collateral they need to obtain a working capital loan from a bank. Aws assumes 100 percent of the collateral for loans of up to EUR 500,000 and can therefore also be used by startups and SMEs. This support has already been very well received by the domestic economy.
“Quick help is important in the current situation. That is why we have placed special emphasis on quick access when it comes to relief measures such as the bridging guarantee or subsidies for startups with digital tools. This ensures that aws commitments are made immediately as part of quick procedures, ”says the aws management, Edeltraud Stiftinger and Bernhard Sagmeister.
The most important links from authorities and institutions for companies related to the corona virus can be found here.
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