Financial aid for the creation of spin-offs from public research
Do you want to request financial aid for the creation of a spin-off from public research?
The Luxembourg Ministry of the Economy offers financial support to spin-offs from Luxembourg public research organisations. The aid is designed to help newly created companies cover their operating costs during the critical period leading up to their first fundraising, increasing their chances of successfully raising initial capital.
Eligible costs cover a maximum period of 18 months prior to potential fundraising and include:
- Payroll expenses (staff remuneration and social insurance contributions)
- Technical and development costs (equipment, software, certifications, intellectual property protection, regulatory advice)
- Testing costs (laboratory, clinical or environmental testing)
- Data acquisition costs
- Costs associated with building a customer base (user experience analysis, marketing)
- Installation and infrastructure costs (laboratory and office rental, IT infrastructure, cloud and HPC)
- General and administrative expenses (accounting, insurance, legal counsel, telecommunications)
We will advise you on:
- whether your company would be eligible, and
- whether this funding scheme is the best one for your specific project.
We can also inform you throughout the application process all the way to submission to the Ministry of the Economy.
Maximum amount of financial aid
The aid covers up to 80% of eligible operating costs for the period up to the first fundraising round, or a maximum of 18 months, whichever comes first.
The company must bring private financing representing at least 20% of the financing requirement for that period, in the form of:
- cash contributions to the fully paid-up capital; or
- other forms of investment, such as shareholder loans or debt investments.
The maximum amount of financial aid is EUR 200,000, granted in the form of a capital subsidy by the Ministry of the Economy.
Key figures
Key benefits
Benefit from the following advantages:
-
Bridging finance to first fundraising
Cover your operating costs during the most critical phase of your company's development, from incorporation to your first investment round. -
Streamlined access to capital
The aid is paid in two instalments: an 80% advance upon proof of co-financing, and the remaining 20% upon confirmation of a minimum fundraising of EUR 200,000.
Who can benefit?
This aid measure is aimed at spin-offs from Luxembourg public research organisations that fulfil all eligibility criteria. To qualify, the spin-off must:
- hold a valid business permit issued by the Ministry of the Economy;
- qualify as a small enterprise under Annex I of Commission Regulation (EU) No 651/2014;
- be incorporated as a société anonyme (SA) or société à responsabilité limitée (SARL);
- have been registered for no more than one year;
- have fully paid-up share capital of at least EUR 15,000;
- hold a signed licence or transfer agreement for a technology, know-how or intellectual property right from a public research organisation;
- present a solid business plan demonstrating economic viability and investor appeal;
- not have previously benefited from an aid scheme.
Applications must be submitted through Luxinnovation before the start of the eligibility period for costs. Costs incurred before submission will not be taken into account.
This financial support measure is provided by the Ministry of the Economy.
Interested in applying for funding?
Feel free to contact us for further information and guidance. We are also available to discuss how this funding measure and others would best fit into your long-term strategy.
