One of the main challenges for technology-based businesses in the early development stages is their high capital needs and the higher-than-usual risks for financiers. Technology-based, especially deep tech startups are often deemed too risky for private investors as the tangible results (e.g. market-ready solutions) and the return on investment takes longer to realise.
Therefore, the financial support provided by the public sector can help bridge the financing gap in the market and can play a pivotal role in supporting innovation. As technology innovation is often done in critical fields such as health, space tech or green tech, providing target financial backing can be vital for improving our society and planet.
This policy brief focuses on policies and schemes dealing with venture capital and equity investment in technology-based startups. Those are more specifically public investment funds and the support to investment communities. It shows the need for and benefits of such schemes and presents good practices from the Interreg Europe community. Finally, an outlook on current trends in equity investment is provided.
Download the policy brief on equity funding for startups
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Portugal Ventures is a public venture capital fund, that leverages on European Structural Funds to address a market failure in the support of SMEs in Portugal.
Grant Programme to Business Angel Networks of ACCIÓ-Catalonia Trade & Investment
Grants awarded to Private Investor Networks accredited by ACCIÓ-Catalonia Trade & Investment to foster the funding from their business angels into start-ups.
Building an entrepreneur competence and investor network – Fundraising for start-ups
By connect and educating startups and investors on topics related to investments in early-phase businesses, the number of investments and investors increase.