startupPlus+ SK75: Incentives for starting innovative companies

Details

COUNTRY: Slovenia
REGION: All
PERIOD: 2018-2023
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Goals, Recipients, Beneficiaries

The program was intended to support entrepreneurial teams on their way to entrepreneurial success with the combination of financial incentives and substantive support (financial incentives, mentoring programs) for faster introduction of new technological achievements, inventions and patents into economic exploitation.


SPS (SEF) offered quasi-equity financing in the form of a convertible loan under very favourable conditions to an innovative company that needs a financial injection in the seed development phase to accelerate sales and grow faster on the market. The purpose of the product is to provide quasi-proprietary financing (convertible loan) for innovative micro and small companies in the seed stage that have difficulty accessing financing from commercial banks or other classic forms of financing.


The programme was financed by the Slovenian Enterprise Fund and the European Union – European Fund for Regional Development. Implemented on the basis of the Substantive Support of Fund Recipients (SME) program 2018-2023 within the Operational Program for the Implementation of the European Cohesion Policy 2014-2020.


Amount of funding: EUR 75.000 convertible loan per company (app. 5.250.000 EUR).

Eligible Projects / Expenses

  • Beneficiaries and basic conditions: micro and small businesses; company registered in Slovenia (headquarters in RS); company registered as d. o. o.; the company does not have as its main activity a registered activity that belongs to the excluded sector; age of the company from 1 to 5 years; at least one partner employed full-time. Obtaining the SK75 financial incentive is partially conditioned by participation in the pre-selection process, the purpose of which is to help in the selection of the most suitable startup companies by including entrepreneurial experts in the evaluation process and personal presentations of business ideas.
  • Conditions for participating in the pre-selection: an innovative business idea with ambitions on the global market; a developed solution that has already been tested with the first customers or early users; entrepreneurial team (doesn’t have to be finalized); commitment to realizing the idea of 100% working time; willingness to work according to modern entrepreneurship methodologies and to be included in support programs.
  • Eligible costs: all costs intended for the business and development of the company (forbidden to pay off already existing company credits).

Support

  • Amount of funding: EUR 75.000 convertible loan.
  • Absorption of funds: in three tranches (1st tranche: EUR 25.000; 2nd tranche: EUR 25.000, 3rd tranche: EUR 25.000).
  • Financing period: maturity of the convertible loan, including the moratorium on loan repayment: five (5) years with the possibility of extending the maturity for a maximum of two (2) years.
  • Moratorium: 3-year moratorium on principal repayment of convertible loan.
  • Interest rate: contractual interest rate: fixed 4.0% p. a.
  • Method of repayment: the convertible loan is repaid in equal consecutive monthly instalments after the moratorium has expired.
  • Support and training programs: The Fund provides recipients of financial incentives with intensive substantive support in the form of a mentoring program and other specialized, intensive, and completed support programs, in order to increase and improve the effect of the fund’s financial incentives intended for companies in the early stage of growth.

Procedure

In case of obtaining the loan, an expert council of the company is formed – a consultative body which advises the manager on strategic and other decisions.


Selection criteria: number of points achieved in the pre-selection / business team / innovation and technology / extent of the initial investment in the company in money / the presence of a private investor / financial situation or company’s indebtedness / market size and growth / ability to repay the convertible loan. Pre-selection procedure SK75 – not necessary, but highly recommended (points). Conditions for participating in the pre-selection – written in section “Eligible projects”. The pre-selection (max 40 points in total) takes place in interconnected steps, that cannot be skipped:

  • STEP 1: submission of the online application form
  • STEP 2: first presentations in front of the committee (max 10 points / minimum of 6 points is required to advance to the next step)
  • STEP 3: participation in preparatory workshop
  • STEP 4: second presentation in front of the committee (max 30 points)
  • STEP 5: official application for tender SK75 of the Slovenian Enterprise Fund

Status / Results

  • 108 startup and scaleup companies participating in the program in 6 years.
  • 7.055.000 € of loans granted to companies.
  • 90% survival rate of companies.

Remarks

The program was intended for young innovative companies up to 5 years old that need a financial injection but find it difficult to receive co-financing from commercial banks. Besides, the company needed to participate also in preparatory workshop.

Contacts

ORGANISATION: Chamber of Commerce and Industry of Slovenia
CONTACT PERSON: Katja Bučan
EMAIL: Katja.bucan@gzs.si
PHONE: : +38651326923

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