Note: There is no legal entitlement to funding.

1. Which projects are funded?

Funding is available for pre-start-up and start-up projects or companies in their initial growth stage, demonstrating:

• a high degree of innovation AND
• a high positive social added value/impact AND
• realistic and high market opportunities as part of a scalable business model.

The innovation-specific social impact must fall within one of the following areas:

• Diversity / Equality / Integration / Inclusion
• Environment / Resources / Climate protection 
• Health / Care
• Education
• Mobility / Transportation
• Urban development / Living in the countryside / Housing.

Depending on the status quo of a project, there are two modules available:

Preseed: Funding is provided for pre-start-up and start-up projects to be brought to commercial realization through the development of an initial proof of concept or prototype. The focus is on innovative products, services, or applications with an emphasis on impact, in which conceptual and economic feasibility still needs to be verified.

Seed financing: Funding is provided for entrepreneurial start-up and scale-up projects that already provide for a proof of concept and are geared towards achieving market maturity and market launch. The focus is on innovative products, services, or applications with an emphasis on impact, which can already demonstrate their conceptual and economic feasibility in a plausible and comprehensible manner. Thanks to funding, innovative, impactful, and scalable projects must be accelerated and result in a faster corporate growth. Funding is provided for development steps through to market maturity, as well as for initial measures for market transition.

2. What does “a high degree of innovation” mean?

A high degree of innovation is understood to mean the development of a completely new solution for existing problems, the development of significant additions to existing solutions or the application of existing techniques / materials / processes in a new area, or the development of the solution to a new problem.

A high degree of impact-related innovation is characterized by a significant advantage over current solutions, i.e., a social problem addressed is alleviated to a considerably greater extent compared to existing solutions.

3. What does “high positive social added value/impact” mean?

The goal is to address and alleviate a socially significant problem of high relevance through targeted innovative approaches, thereby driving social change in specific subject areas and influencing social attitudes. A high social added value and impact are characterized by the significant scope and/or profound depth of impact of an innovative project.

Problems affecting economic activities of companies or industries are not to be considered as social problems within the definition of aws Innovative Solutions.

4. What does “realistic and high market opportunities” mean?

The basis for realistic and high market opportunities is a promising and scalable business model. Its indicators include in particular: 

• Profitability of the (planned) cost and price structure,
• Clear ideas about the market, target group, competition, and (planned) processes, as well as 
• Cooperation partnerships, e.g., for production and distribution

5. When does “the project period” start?

The “project period” is defined by funding applicants in their application and can start at the earliest on the day the application is submitted. If funding is approved after the project is started, costs shall be accepted retroactively.

Projects must start, as well as be actively realised and completed in accordance with a contractually agreed schedule.

8. Who can apply for a grant?

Preseed: Natural persons with intention of founding a company, sole proprietorships, as well as partnerships or corporations initially registered in the Commercial Register for no longer than 6 months on the day of application.

IMPORTANT: If an application was submitted by a natural person, the establishment of a partnership or corporation shall require approval by aws. 

Seed financing: Partnerships or corporations (only micro and small enterprises according to the definition of SME) established for no longer than 5 years on the day of incorporation (at the time the funding is awarded). Applications must be submitted no later than 54 months after their registration in the Commercial Register or starting business activities. Not eligible to apply are sole proprietorships, civil law partnerships (GesbR), foundations, cooperatives, and associations.

7. Which formal criteria / requirements must be met?

• A project, anoperating facility, or a branch must be located in Austria, and the largest proportion of its value added must be generated in Austria.
• The applicants or the main operating shareholders of a company applying for funding have relevant training/experience, are willing to implement the project with entrepreneurial full-time commitment, pursue an above-average growth strategy, and are open to risk capital financing.
• Provided a company is already established, applicants will be considered as micro or small enterprises according to the EU definition of SME [link or explain further] at the time the funding is awarded.
• The company established or to be established must be an independent company according to the EU definition of SME [link or explain further] at least until the final settlement of the funding (preseed) or at the time the funding is awarded (seed financing).
• Within the project period, the applicants or key shareholders may not operate another company pursuing the same business activity or being active in the neighbouring markets within the EU definition of SME (preseed).
• Majority shareholders of the companies that do not qualify as young micro or small enterprises within the EU definition of SME may only hold a stake of less than 25 % in the company of the applicant (seed financing).
• According to the EU definition of SME, investors may only hold up to 50 % of shares in the company.
• The company must not have distributed any profits yet.
• The company must not have been founded through a merger of companies older than five years and must not have taken over the activities of an older company. In the case of a merger, the age of the oldest company is crucial.

8. How much is the grant?

The Preseed | Seedfinancing - Innovative Solutions Modules offer non-repayable grants.

Preseed: The funding rate amounts to 80 % of eligible project costs. The maximum possible grant amounts to EUR 89,000. When applying the gender bonus, the grant increases to up to 90 % of eligible costs or to a maximum of EUR 100,000.

Seed financing: The funding rate amounts to 80 % of the eligible project costs. The maximum possible grant amounts to EUR 356,000. When applying the gender bonus, the grant increases to up to 90 % of eligible costs or to a maximum of EUR 400,000.

9. What are the requirements for the Gender Bonus?

The gender bonus can be awarded in the following cases:

1. An application is submitted by a natural person (preseed): the applicant is a woman; if the company is established within the project period, more than 25 % of shares must be held by women.
2. An application is submitted by a company (preseed/seed financing): at the time the funding is awarded, more than 25 % of shares must be held by women.

Proof must be provided of the acquisition of the corresponding shares and the participation of female shareholders in managerial functions during the project period, covering more than 50% of the normal working hours as stipulated in law or a collective agreement. This does not include absences due to maternity or parental leave.

10. How much is the equity, and how is it to be verified?

On the day of application, the project must be plausibly financed, i.e., at least by 20 %, or by 10 % when applying the gender bonus. If funding is approved, the following evidence must be provided before the first instalment is paid out:

• At least 10 % of the total costs (or 5 % when applying the gender bonus) must be covered by the shareholders’ financial resources and provided through one or more payments into the project’ bank account, confirmed by a recent bank statement. Non-monetary contributions are not accepted.
• The remaining financing can also be provided by borrowed funds (like loans, overdraft facilities, etc, but not by other funding).
•  

11. When and how much is paid?

The funding is usually paid in milestone instalments according to the following scheme:

• 1st instalment: 40 % at the beginning of the funding period
• 2nd instalment: 40 % after contractual milestones are achieved (approx. in the middle of the funding period)
• 3rd instalment: 20 % after all contractual milestones are achieved and he the project is completed.

The milestones and instalments are contractually agreed in the case of funding commitment. 

12. Can the grant be combined with other funding?

Provided that the aid limits are not exceeded and there is no double funding with regard to costs submitted, the combination is permissible. The costs of a project approved by 
aws Preseed | Seedfinancing - Innovative Solutions cannot be additionally financed by any other funding.

13. When can I submit my application (deadlines)?

Applications can be submitted on an ongoing basis. 

14. What documents are required?

The following documents must be submitted:

• Online application via aws Fördermanager (aws Funding Manager)
• Structured pitch deck 
• Integral planning
• Business plan
• Proof of identification
• CVs of the project team

The mandatory templates can be found here
for Preseed and for Seedfinancing. here

 

IMPORTANT: If one or more of documents required are not submitted or if requirements are not met, the submitted project will be rejected for formal reasons.

15. What needs to be considered when drawing up the integral planning?

Take time to read all instructions and information (see red edges) carefully!

All fields marked in yellow must be filled in. The objectives of the milestone planning must be formulated in a clear and comprehensible manner and be measurable. If funding is approved, these milestones become a part of the contract, and their achievement is a prerequisite for a payment in question.

16. In which language is it possible to apply?

The application documents must preferably be in German, but applications in English are also permitted.

17. Is it possible to arrange a consultation?

Consultations per phone (approx. 10 minutes) are offered for specific questions with regard to thematic and formal criteria.

Requirement: Please read all information on the program website carefully, incl. the Program Document and FAQ. Questions that are explained there in detail cannot be addressed in a consultation due to capacity reasons.

18. What are the costs eligible for funding?

Eligible costs for funding include all direct cost actually incurred and attributable to the project throughout its duration, which are essential and clearly necessary to achieve the agreed objectives in accordance with principles of economic efficiency, expediency, and economy. 

Possible eligible costs include:

• Personnel costs
• Costs for instruments and equipment
• Travel expenses
• Other program-specific costs
• Costs associated with the establishment, development, or growth of a company.

The allocation of various cost types like personnel costs, third-party costs, material costs, and other costs is explained in sections below.

19. Personnel costs: Which personnel costs are eligible for funding?

Personnel costs include:

• Remuneration of shareholders (own withdrawals with corresponding receipt and payment flow)
• Wage and salary costs of employees and/or freelancers (the actual gross amount paid by the employer; whereby special payments shall be taken into account in relevant months)
• Remuneration of team members (in Preseed Module: based on a relevant invoice addressed to a funding recipient in question before a start-up company is established)

In cases where personnel costs that are primarily funded from federal funds, costs can only be recognized up to the amount corresponding to the federal salary scheme or as determined by relevant legal provisions, collective bargaining agreements, or industry-standard company agreements customary in the industry. If such agreements are absent, industry-standard service contracts may also be accepted. Eligible personnel costs include actual wage and salary expenses as recorded in the applicant’s internal payroll accounting.

20. Third-party costs: Which third-party costs are eligible for funding?

Third-party costs are services purchased from third parties, e.g., IT development, market studies and market research, tax advice, notarial deeds for establishing a company, specific consultancy services, etc. These costs are fully eligible for funding. 

21. Material costs: Which material costs are eligible for funding?

Material costs are tangible and intangible investments, i.e., goods that can also be used to generate profits after the project period. These include instruments and equipment (machines, tools, computers, software, etc.), property rights and licenses, and facilities.

Capital goods eligible for capitalization are generally eligible for aliquoted funding in the amount of the deduction for wear and tear (depreciation) for the duration of the funding period.

Capital goods that cannot be capitalized or low-value assets (GWG) can be recognized in full as eligible costs.

22. Other costs: What is included in other costs?

Other costs incurred directly during the project period, such as costs for ongoing operations, consumables, supplies, marketing and sales costs, travel costs, training costs, or childcare costs are also included in other costs provided they cannot be allocated to any other cost type.

• Travel expenses:
   
• Childcare costs:
• In order to maintain the entrepreneurial full-time commitment, childcare costs for small children up to the age of 3 years can be recognized up to a maximum of EUR 500 per month. This applies to founders with more than 25 % of the (in the case of preseed: future) shares if the costs are borne by the funding recipients, and all guardians are employed full-time.

23. Is VAT eligible for funding?

The value added tax attributable to the eligible costs is generally not eligible for funding. 

Exception: If thie VAT is demonstrably and definitively borne by the funding recipients (i.e. there is no entitlement to deduct pre-tax), it is considered to be an eligible cost component. 

The VAT that can be reclaimed in whatever way is not eligible for funding even if the recipients of funding do not actually receive it back. 

24. Which costs are not eligible for funding? 

• Costs incurred before the day of application or the contractually agreed start of the project,
• Costs not directly incurred for the duration of the funded project,
• Costs that are not an indispensable prerequisite for successful project completion and goal achievement,
• Invoice amounts under EUR 50 excl. VAT, whereby similar recurring payments to the same suppliers can be combined within one year to exceed the amount,
• Non-specific building equipment,
• Purchase of real estate or vehicles; construction of buildings,
• Costs that are covered under other funding schemes,
• Expenses for private pension provision,
• Formation of reserves, provisions, and similar,
• Voluntary social benefits and other voluntary contributions, except for child allowances (up to EUR 150 per month) and childcare costs in accordance with point 4.1. in the Program Document,
• Value added tax (except for companies that are not entitled to deduct pre-tax).

25. What does the evaluation process look like?

As soon as an application has been submitted via the aws Funding Manager, it will be checked for the completeness of documents, as well as for content and formal criteria. If the formal requirements are not met, the application will be excluded from further processing, and the applicant will be notified in writing by aws.

All complete applications that meet the specified criteria will be evaluated by the jury in terms of content and economic viability. The final decision will be made in a jury meeting.

26. How long does the selection process take?

The approval period can take 2-4 months (see flow chart) and depends on the jury meetings, which take place several times a year (usually once per quarter). The applicant will be informed of a decision as soon as possible. 

27. What criteria are used to assess funding applications?

• Completeness of the documents
• Formal criteria
• Degree of innovation and innovation potential 
• Scope and depth of the positive social added value/impact 
• Realistic and high market opportunities as part of a scalable business model
• Line-up and qualification of the team
• Cooperation for the successful realization of the project
• Quality of planning and documentation

28. How is the confidentiality regulated?

The data submitted on the persons and contents of submitted projects will be treated with the utmost care and confidentiality. 

Austria Wirtschaftsservice Gesellschaft mbH and its employees are subject to strict compliance and confidentiality agreements.

External experts are bound to secrecy by the aws by means of a confidentiality agreement. Jury members with conflicts of interest or bias are excluded from the evaluation process.

29. What is the legal basis for funding?

aws Preseed | Seedfinancing - Innovative Solutions, the "Program to promote the establishment and development of innovative companies", is based on point 3 of the guideline for Austria Wirtschaftsservice Gesellschaft mbH for the promotion of technology and innovation of 01.01.2024 ("AWS T&I Guideline").

The guidelines and the program document are available for download on the aws homepage..

30. Which aid regulation is the basis for funding?

aws Preseed - Innovative Solutions provides a funding under the EU de minimis aid regulation. Under certain conditions, companies from almost all economic sectors can receive financial aid up to a maximum of EUR 300,000 within the last 3 years.

aws Seedfinancing - Innovative Solutions provides funding under the EU General Block Exemption Regulation (GBER), in particular Article 22.

31. How is the funding to be treated under tax law?

The tax treatment of the funding is to be assessed individually according to the current legal framework and the situation of a recipient(s) of funding. It is, therefore, advisable to consult a qualified tax advisor. Details here in the  information sheet.