Start-up factory – Pre-acceleration program
About this good practice
Companies in Croatia, including Zagreb SMEs are facing difficult access to financial support. The venture capital market is almost non-existent and has negligible capital opportunities, in addition that the network of business angels is underdeveloped. Difficult access to financing results in, either failure to start the innovative entrepreneurial ventures or their actualization and setting up of business abroad. In response to challenges: (1) difficult access to funding sources in the most sensitive stage of development and (2) absence of a structured public start-up support program, the City of Zagreb and ZICER launched the first publicly funded Entrepreneurial Pre-acceleration program called "Start-up Factory". The program is intense and time-limited to eight weeks and is implemented once a year.
Target groups: teams or start-ups developing high-tech solutions, registered in the last 12 months.
Key elements of the program:
• education on entrepreneurial skills, networking with potential clients and investors, mentoring by experts, financial and infrastructure support for best projects
• Granting scheme up to (27.000€), per project
• Supporting young companies at risky early stage, ensuring preconditions for prototyping, investment, further growth and employment of new employees
• The selection process
• Results of the program: launching new small businesses that base their development on a new business model for an innovative product / service.
Resources needed
Total budget for 2016, 2017, 2018 and 2019: app. 544.000€ (4,000,000.00 HRK)
- app. 445.200€ (3,330,000.00 HRK) grants for start-ups (no equity)
- app. 98,000 € (735,000 HRK) for external services (mentoring start-ups, etc.)
Evidence of success
Some of the Startup Factory alumni acquired investments:
•HUBBIG, logistics, EUR 368,000
•OmoLab, app for individuals with reading difficulties/dyslexia, EUR 261,000
•Modulos, innovative sustainable furniture, EUR 52,000
Out of 99 companies in the incubation programme, 21 have a prototype. Some of these companies are Startup Factory teams: Wingo, a smart table with integrated heating is a great solution for winter terraces; Modulos, the first truly modular desk system; Visiobike Carbono,
Potential for learning or transfer
Large number of corporate partners/companies have supported Programme's implementation, both financially and through provision of services (e.g. Erste Bank, Croatian Telecom, Ericsson Nikola Tesla, PricewaterhouseCoopers, IBM and Algebra). With the funding assistance through Start-up Factory Zagreb, ZICER has presented its work at the largest European Technology Conference - Lisbon Summit. ZICER was put on the European Map of the Leading Technology Development Centres, consequently securing the participation for additional six companies from the Technological Park. These companies achieved significant benefits through cooperation with foreign partners.
In addition to direct beneficiaries, many others had indirect benefits through participation in open part of the Programme (workshops and lectures). This included wider community of ZICERs, as well as the interested public who had the opportunity to learn from renowned domestic and foreign experts.
Further information
Website
Good practice owner
You can contact the good practice owner below for more detailed information.
Zagreb Innovation Centre Ltd.