LUXEMBOURG, A TRUE "START-UP NATION”
LUXEMBOURG, A TRUE "START-UP NATION”
In just a few years, Luxembourg has developed an extremely attractive environment for the establishment and development or start-ups. Financing, advice, opportunities for growth in Europe: the country is a real haven for Innovative companies.
In Europe, there is no shortage of contenders for the title of "start-up nation". But not all of them have put their words into action in the way Luxembourg has. In the space of a few years, under the impetus of the Ministry of the Economy, the country has developed an ecosystem entirely dedicated to start-ups – young innovative companies – and scale-ups, which are slightly more experienced companies willing to expand in Europe. Today, more than 500 start-ups are based in Luxembourg, taking advantage of a range of support measures made available by a number of organisations.
Luxinnovation, the spearhead
One of these, Luxinnovation, an Economic Interest Grouping (EIG) created in 1984, is key player Indeed, a large number of its activities are devoted to-start ups. "We offer tailor-made advice to each company and support them from creation to international development, explained Stefan Berend, Head of Start-up Acceleration at Luxinnovation. This advice can take the form of support in defining a viable business model, but can also consist of sourcing the essential financing that will enable a start-up to develop. “Luxembourg is a financial centre, so there are a large number of investors, particularly in private equity, ready to invest in an entrepreneurial project that seems interesting to them,” he continued.
“We help start-ups to get in touch with these investors, notably by taking advantage of the network of organisations such as LPEA – Luxembourg Private Equity and Venture Capital Association – or LBAN – Luxembourg Business Angels Network.”
However, Luxinnovation does not only rely on private investors to grow the start-up ecosystem in Luxembourg. With Fit 4 Start, a public-private partnership, it manages Luxembourg’s flagship support programme, which can lead to funding of up to 150,000 euros. “Fit 4 Start aims to help both local and international companies,” said Stefan Berend. “Our aim is to encourage the creation of local start-ups, but also to enable international players to develop in Europe from Luxembourg.”
Working closely with the government bodies, Fit 4 Start selects companies whose activities are in line with the Luxembourg economy’s strategic vision: ICT, healthtech, space and high performance computing. Beyond Fit 4 Start, many public subsidies can also be applied for by start-ups in Luxembourg, notably to support R&D. A public-private initiative, such as the Digital Tech Fund, is another financing tool. In addition, there are also some fifteen incubators in the country.
Putting Luxembourg on the map
The goal now is to make this outstanding ecosystem famous on the international stage, with the aim of attracting a growing number of companies from around the world. Startup Luxembourg was created with this in mind. “Growing numbers of organisations sharing the aim of supporting start-ups is a good thing, but it can lead to a lack of legibility for foreign players,” explained Jonas Mercier, Startup Luxembourg Coordinator at Luxinnovation. “With Startup Luxembourg, we wanted to create a single entry point for all those seeking information on the opportunities offered by the country.”
Promoting Luxembourg as a business location, in the context of strong competition with cities such as Paris, Berlin or Amsterdam, is no easy task. In order to promote Luxembourg, Startup Luxembourg has relied on the country’s special features, starting with its small size. "Contrary to what one might think, this is not a disadvantage," said Jonas Mercier. “It is easier to set up contacts, to shorten access paths to the authorities or to political decision-makers. We are used to this in Luxembourg, but it is far from being a reality in cities like Paris, for example.”
This advantage is obviously one of the factors that is promoted abroad, via the offices of the Luxembourg Trade & Invest network, located in Israel, China, the United States, the United Arab Emirates, etc. But it is above all the ability of Luxembourg-based start-ups to grow on the European market that is being highlighted abroad. “We need both local and international driving forces to nurture our ecosystem. Significant growth is indeed one of our main objectives for the coming years,” concluded Jonas Mercier.
For more information on Luxembourg and a tailor-made support please contact the Luxembourg Trade & Investment Office in Israel.
Article produced by CDA>>
