Young Innovative Company funding is intended for startups with a high business potential that have been in operation for less than five years. Funding enables the company to invest in the growth of international business and, in addition, strengthen the team, develop its business model and growth strategy, and target new markets.
For the Young Innovation Company funding, we select promising startups that have been in operation for less than five years, are able to rapidly scale up internationally and already have significant net sales and evidence of growing international business.
The companies selected for the funding have typically already used our funding services in previous projects. The age of a typical company selected for the Young Innovation Company funding is 4 years. The companies have an average of 13 employees, a turnover of more than EUR 420,000 from the scalable business, and EUR 1 million in equity investments. The companies' managers have strong international expertise, and most companies already have a significant international turnover. Some 40% of the companies have foreign investors.
We provide funding in at least three periods. The funding for the first period is a grant of EUR 250,000, the funding for the second period is also a grant of EUR 250,000, and the funding for the third period is a loan of EUR 750,000.
Business Finland may grant Young Innovation Company funding if the following conditions are met:
Funding granted by Business Finland is discretionary and, in addition to the company's financial standing and the content of the project, the assessment covers the company's resources to carry out the project, the proportion of public funding in the company's previous years, and the implementation of previous projects as well as the use of their results.
The Young Innovative Company funding will be divided into two grant phases and one loan phase, which will be evaluated at the end of each phase. In the phases, funding can be used, for example, in the following ways:
We cannot grant your company funding if:
The Funding Terms and Conditions describe the costs for which Business Finland can provide funding, how we monitor your project costs, and how you should report on the progress of your project.
Please also read the guidelines for the Young Innovative Company projects implementation and reporting
Please discuss with Business Finland your company's suitability for Young Innovative Company funding. Contact your Business Finland account responsible or our customer service.
Send your application and attachments via our online service. You can also keep track of the processing of your application in the online service.
The company must have been in operation for less than five years before the funding decision for the first period is made. Submit your Young Innovative Company application in good time, no later than two months before your company turns five.
In the application form, you will be asked to set 2–5 measurable goals for your project. The goals must be based on the company's business plan and be linked to concrete outcomes of the project and the development of your business. The goals of the Young Innovative Company are recorded in the funding decision, and Business Finland will monitor their achievement. Achieving the goals will have a significant impact on the progress of the Young Innovative Company funding and other funding from Business Finland.
Examples of project goals:
Attach a project plan and a separate business plan to the application if it is not included in the project plan. Fill in the fields in the application form as usual.
In the project plan, we ask you to describe at least the following:
We also require an initial plan for all the funding phases. As the Young Innovative Company funding progresses, a separate project plan must be drawn up for each phase.
The funding application must be accompanied by an auditor's report on the company's compliance with the conditions for granting Young Innovative Company funding. The prerequisites have been presented in the When should I apply for funding? section. Among other things, we require that at least 10% of the company's total costs have been allocated to research and development activities in one of the three years preceding the application. To prove this, the company can use either Statistics Finland's form on research and development expenditure or Business Finland's calculation.
Please submit the following financial information on your company with the application:
You can submit the information using Business Finland's calculation templates or by other means, for example as part of a business plan.
Business Finland can accept costs starting from the date the application was submitted, at the earliest. The progress of the project is reported in accordance with the schedule indicated in the financing decision. The report and the expense report are sent through the Business Finland's online service.
Costs that are not eligible
Procurement must comply with the Act on Public Procurement and Concession Contracts (Procurement Act guidelines).
Plan a project and define its goals. Ensure the sufficiency of self-financing.
Submit your application through online services. Submit the additional information requested.
Business Finland will assess your application and notify you of its decision. Read the decision and its terms and conditions, and approve the decision in online services.
Arrange project accounting. Notify Business Finland of any changes.
Report your project's implementation and costs. Attach the additional information requested with your report.