EU Authorities Approve EUR 10 Million Loan to EIB for Supporting Small and Mid-Size Business Ventures

Austria is establishing a state-owned umbrella fund, the 'Location Fund', designed to promote growth, innovation, and value creation in the country's ecosystem. The fund will bundle several vehicles, including the 'Scale-up Fund', aimed at attracting capital investment for startups and companies in the Austrian ecosystem.

Recently, the startup association has expressed frustration with the slow progress of the startup policy of the new federal government. They are calling for a consistent startup strategy all in one go, hoping to accelerate the growth of the Austrian startup ecosystem.

In the midst of this, several new startups are making their mark. NormKI, diamics, helpcode.ai, Hive Robotics, and Shiny are among the latest additions to the Austrian startup ecosystem.

One startup that has faced challenges in recent years is Everphone. The Device as a Service provider based in Berlin had a tough process of transforming from hypergrowth to profitability in 2022. Despite missing the revenue target, Everphone improved its EBIT by €15 million within a year, closing 2024 profitably with a consolidated annual loss of €26.8 million in 2023.

On the other hand, GoStudent, a Viennese EdTech scaleup, has seen significant success. In the 2024 fiscal year, GoStudent generated over €163 million in revenue, and improved its EBITDA by more than €200 million within two years, making it positive. The company, however, has had to cut dozens of jobs in recent years.

Other startups in Austria are also making headlines. WattAnyWhere, Econetix, neXtract energy, mypaperwork, StartMatch, and Unio have recently received investments or exits.

State Secretary Elisabeth Zehetner discussed the Location Fund with invest.austria, emphasising its potential to boost the Austrian startup ecosystem.

For those looking for job opportunities in startups and companies, the job board offers listings. The #StartupTicker provides updates on recent startup-related events.

However, the current identity of the expected 'Scale-up Fund' in Austria is not explicitly named or detailed in the available search results.

On November 5, the second STARTUPLAND event will take place, offering a platform for startups, investors, and entrepreneurs to network and discuss the future of the Austrian startup ecosystem.

Even with the challenges faced by some startups, the Austrian startup ecosystem continues to thrive, with new startups being introduced regularly and successful startups generating significant revenue. The establishment of the Location Fund is a testament to the government's commitment to supporting the growth and success of startups in Austria.

EU Authorities Approve EUR 10 Million Loan to EIB for Supporting Small and Mid-Size Business Ventures