Want to launch a Startup but need support?

There are several financial incentives for entrepreneurs who want to launch their projects and turn their ideas into innovative businesses. Here's a list of some of the financial support that can help you launch your company.

1. European funds

European Grants and Communitary Support can be excellent levers in the initial launch of a business project. These incentives are financed by the European Union and aim to promote the economic development of its member states by providing funds for the start-up of companies and new business projects.

• Startup Vouchers
  The Startup Vouchers: New Green and Digital Products is a grant of 30,000 euros that aims to support the start-up and growth of startups whose business models, products or services contribute to battling the climate crisis. The development of pilot projects and demonstrations that respond to current challenges are eligible.

• INVEST +
  With maximum funding of up to 200,000 euros, the INVEST+ Credit Line is an incentive promoted by the IEFP and aims to support entrepreneurship and the establishment of self-employment, the start-up of small companies and for-profit business projects, including co-operatives, through access to credit lines with guarantees and interest rate subsidies granted by banking institutions.

• Empreende XXI
  Promoted by the IEFP, Empreende XXI is aimed at self-employed workers, entrepreneurs or unemployed people who want to launch their own company or create their own job. The maximum amount of funding is 200,000 euros.

• Specific Line of Bank Guarantees:
  The grant for Specific Bank Guarantees Line is a credit line with a mutual guarantee of up to 80 per cent aimed at micro and small companies in the tourism sector to support the sustainable recovery of Tourism.

2. Bank financing
Due to their involvement with the economy and finance, banks and banking institutions are fundamental partners in the acquisition of financial products for the start-up of business projects and the implementation of measures to stimulate the growth of start-ups and SMEs. Therefore, banking institutions offer various financing solutions:

• Bank credit
  This is the most traditional way of obtaining finance. Bank credit allows you to access financial values quickly. However, it is important to carefully analyse the interest rates associated with each financing proposal. To access bank credit, you will need to provide guarantees that the amount of the loan will be repaid through a guarantor or mortgage on a property, among other conditions imposed by the bank.

• Micro-credit
  Microcredit lines have the advantage of not requiring guarantees. Aimed at entrepreneurs and micro-enterprises, this financing gives access to smaller amounts of up to 25,000 euros, with repayment periods of up to 60 months.

• Mutual Guarantee Companies
  Mutual guarantee societies are a financing solution for companies that can't access bank credit. By becoming a shareholder in a Mutual Guarantee Company, your company can have easier access to credit since it is the company that will assume the guarantee of repayment of the loan, just like a guarantor.

• Venture Capital
  Venture capital is a temporary finance instrument for SMEs, using equity capital. Providing companies with stable financial means to manage their development plans, this instrument is suitable for start-up, expansion, modernisation and business innovation projects with a strategic dimension.

3. 3F's (Family, Friends and Fools)
This is one of the most basic ways of receiving support. 3F's is a well-known strategy among start-ups. It consists of receiving donations from friends, family or people close to you who want to invest in a project by obtaining some return on that investment.

4. Angel Investors
Angel Investors or Business Angels are individuals or institutions that invest in innovative companies or projects that are in the start-up phase. As well as investing capital in the company, these investors can provide support and mentoring services to entrepreneurs who want to launch their businesses.

5. Seed Money
Suitable for launching a new product or service, Seed Capital or Seed Money can be applied at an early stage of the company or as a way of positioning it on the market.

6. Venture Capital
Type of investment in which funds are invested in companies with expectations of rapid growth and high profitability through the acquisition of shares or quotas.

7. Incubators
An incubator promotes the growth and success of a project, company or start-up, through technical and financial support during the start-up phase. Perfect for anyone who wants to start a new company or business project.

8. Accelerator
An accelerator operates to support a company that has just launched a product to reach the break-even stage. Accelerators invest a small amount of money, known as survival money, and in return become partners in the company for a limited period.

9. Crowdfunding
This is a form of collective financing, through the donation of symbolic amounts that can support the launch of a project, cause or company. There are several platforms where you can get crowdfunding, such as GoFundMe, PPL, European Crowdfunding Network , Indiegogo.

10. Peer-to-Peer investment platforms
Inspired by crowdfunding, Peer-to-Peer investments are loans granted by online investors who register on these investment platforms to support projects in the launch phase. However, these investors can choose which projects they want to finance in exchange for interest payments. Raize is one such platform operating in Portugal.

Andreia Arenga
26.01.2024

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