Financial support at all levels

Year after year, Luxembourg has built one of Europe’s most agile and entrepreneur-friendly ecosystems, offering startups specialised programmes, expert guidance and access to key decision-makers. This national support becomes even more powerful when combined with Europe’s wider toolbox, from cross-border funding to international acceleration networks. Altogether, it gives young companies everything they need to scale beyond borders.

For many founders, the country is an ideal launchpad: a compact market with responsive institutions and a dense network of innovation players. Yet the journey does not stop there. By connecting seamlessly with European initiatives, Luxembourg enables startups and scaleups to access broader financing, research partnerships and new markets across the continent.

Here are some examples highlighted during the latest Luxembourg Venture Days event in October.

Luxembourg State Aids for RDI Projects

In Luxembourg, a range of state aid mechanisms supports companies in their research, development and innovation (RDI) activities and projects. These schemes are not one-size-fits-all; they are tailored to a company’s development stage, project type and financial needs.

At every step of the journey, from the initial idea to market maturity, public support evolves in parallel with private investment, providing a continuum from concept to commercial success.

At the earliest stage, when startups have only an idea or are developing a minimum viable product (MVP), mentorship, guidance and sufficient financial resources are crucial for survival. Startups often rely on bootstrapping, friends, family and fools (FFF) and small private investors at this point. The Fit 4 Start programme can also play a critical role. It offers coaching and up to €150,000 in funding to help startups progress from concept to validated market fit. “This support can act as the foundation for later innovation investments,” explains Ilias El Bouzaini, National Funding Advisor at Luxinnovation.

Once a company has validated its concept and moves into the R&D phase, the State provides project-based R&D aid covering between 20% and 80% of R&D costs. The exact percentage depends on company size, type of research and the degree of innovation and risk involved. “It is important to keep in mind that for all R&D aid, companies must demonstrate their ability to pre-finance the project, since the Ministry of Economy’s contribution usually comes later as cost reimbursements.”

This support can act as the foundation for later innovation investments. Ilias El Bouzaini, Luxinnovation

For startups scaling their innovation, Luxembourg also offers dedicated support through the Young Innovative Enterprise (YIE) scheme. This programme can cover up to 70% of financial needs (companies must first secure at least 30% from private investment), with a maximum grant of €1 million. YIE aid is intended for companies less than five years old that have a product on the market, proven traction and rising funding needs to meet growing demand.

As the company expands, positive cash flow may begin to appear alongside sales-driven growth. At this stage, support may include both R&D aid and Process and Organisational Innovation (POI) aid. “R&D aid helps mature companies deepen or renew their technological edge, for instance by developing new products, new solutions or innovative features to stay ahead of the competition. Meanwhile, POI aid helps companies modernise their processes or implement innovative production systems, often with new organisational structures.”

As with R&D aid, POI aid intensity varies according to the applicant’s size at group level.

This continuum of support helps innovative companies cross the “valley of death”, the critical phase in which costs are high but revenue is not yet flowing, thanks to a combination of private investment, public funding and, of course, entrepreneurial vision and ingenuity.

Tech EU Platform from the European Investment Bank

TechEU is the European Investment Bank (EIB) Group’s programme dedicated to accelerating innovation across Europe. The EIB Group will provide €70 billion through this programme, aiming to mobilise €250 billion in investment by 2027 for startups, scaleups and innovative companies.

It offers a comprehensive suite of instruments to support high-risk projects and innovative companies throughout their investment journey, from idea to market.

TechEU focuses on cleantech, digital technologies, bio- and med-tech, defence and space technologies, as well as fundamental research capabilities.

Our platform, which includes an investment-readiness checker, acts as a one-stop shop for European innovators. Anna Gorzkowska, European Investment Bank

The programme is built on three pillars:

• Bridging the transition from research to innovation and commercialisation;
• Scaling up innovative European companies;
• Mobilising large-scale financing for R&D in large corporates, key strategic technologies, critical raw materials and enabling infrastructure;

“Our platform, which includes an investment-readiness checker, acts as a one-stop shop for European innovators. It helps startups and scaleups navigate the funding landscape,” explains Anna Gorzkowska, EIB Innovation Advisor. “We assess how investment-ready a project or company is and provide referrals to relevant EU funding options, including European Innovation Council programmes, EIB and EIF products, or EIF-backed VC funds.”

European Innovation Council Tools

The European Innovation Council (EIC) Accelerator is a flagship funding programme under the European Commission’s Horizon Europe framework. It supports startups and SMEs with breakthrough innovations as they move from demonstration to market launch and beyond. It targets deep-tech and high-risk innovations with strong market potential, aiming to scale high-impact solutions that could create new markets or transform existing ones.

The fund combines grant and equity to develop innovations and grow the companies. Jean-François Leprince, European Investment Bank

The EIC Fund, implemented by the EIB, is the venture investment arm of the Accelerator. Its mission is to bridge the funding gap for high-potential deep-tech startups in Europe.

Since its creation, the EIC Fund has invested more than €1.3 billion in over 300 companies. “The fund combines grant and equity to develop innovations and grow the companies,” summarises Jean-François Leprince, Principal Advisor at the EIB. “It brings stable and patient capital with no pre-determined exit window, as well as ‘smart money’ through access to fundraising support, business acceleration services and the wider EIC ecosystem.”

There are also notable advantages for co-investors. The EIC acts as a reliable co-investor with the ability to participate in follow-on rounds, and its presence reduces the technological risk of portfolio companies thanks to complementary non-dilutive grants. “It also acts as a quality stamp for investments.”

InvestEU Programme

The InvestEU programme is the EU’s largest investment framework, aiming to mobilise more than €372 billion in public and private investment by 2027. It provides long-term funding by leveraging public and private capital to support Europe’s sustainable recovery. It is implemented through financial partners that invest in projects backed by a €26.2 billion EU budget guarantee.

The fund pillar can support economically viable companies at all stages of development. Uroš Dravinec, European Commission

InvestEU consists of three components: a fund, an advisory hub and a portal. “The fund pillar can support economically viable companies at all stages of development, from SMEs and startups (seed and early growth finance) to scaleups, across all technologies and levels of maturity, through both direct and indirect debt and equity,” explains Uroš Dravinec, Policy Officer for InvestEU Implementation at DG GROW. “An independent Investment Committee approves investment proposals receiving the EU guarantee.”

The InvestEU Advisory Hub offers assistance throughout the entire project lifecycle, supporting promoters and financial intermediaries in preparing and implementing financing operations. The portal brings investors and project promoters together on a single EU-wide platform, showcasing pre-checked quality projects to qualified investors. More than 1,500 projects are currently listed.

Enterprise Europe Network

The Enterprise Europe Network (EEN), created in 2008, is the largest network of the European Commission dedicated to helping companies innovate internationally and scale. The network involves nearly 600 companies. Since 2008, it has delivered more than 35,000 services and facilitated over 20,000 international B2B meetings. Around 22,500 participants have taken part in conferences and events organised by the consortium. Between 2022 and 2025 alone, more than 6,500 Luxembourg SMEs have benefited from its services.

We understand companies’ needs and can guide them individually. Rémi Grizard, Luxinnovation

In Luxembourg, the EEN network is coordinated by the Chamber of Commerce, with support from the Chamber of Skilled Crafts and Luxinnovation. With the launch of the new programming period from July 2025 to December 2028, the consortium just reaffirmed its pivotal role in translating European priorities into tangible drivers of growth and innovation for Luxembourg companies.  “We understand companies’ needs and can guide them individually towards the most suitable solutions or tools,” explains Rémi Grizard, Senior Advisor at Luxinnovation. “In particular, we help startups structure their activities, gain traction and prepare for scaling.”

The network does not provide funding, but it assesses each company’s needs and prepares a tailored action plan. This may include proactive partner searches, recommendations for international matchmaking events, advice on Luxembourg and EU financing opportunities, business plan reviews, support in relevant acceleration programmes and connections with both local and international ecosystems.