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Are there specific support measures for startups?

The Government has put forward a total of seven measures so that more than 2,500 Portuguese startups can overcome the consequences of the COVID-19 pandemic and resume their normal activity after this exceptional period.

New and exclusive measures for startups:

  • Startup HR Covid19
    It aims to promote financial support to startups through an incentive equivalent to one minimum wage per employee (up to a maximum of 10 employees), as a way to address the lack of immediate liquidity on the part of startups, especially with regard to their ability to respond to operational expenses with Human Resources arising from the lack of activity. This initiative aims to reduce the mortality of startups, so vulnerable to risk, especially those that have innovative business models at their origin. At the social level, this initiative also aims to maintain jobs.
  • Extension Startup Voucher
    Extension of the validity period of startup vouchers allocated to date, for a period of 3 months, equivalent to the perspective of duration of the pandemic, as a way to address the lack of immediate liquidity on the part of startups, especially with regard to their ability to respond to operating expenses arising from the lack of activity and fulfillment of long-term responsibilities , as is the case with human resource costs. This initiative aims to reduce the mortality of startups, so vulnerable to risk, especially those that have innovative business models at their origin. At the social level, this initiative also aims to maintain jobs.
  • Covid Incubation Valley19
    The support and accommodation given to startups by incubators is essential at this stage. The Covid-19 Incubation Valley aims to provide support to startups under 5 years (currently 1 year), by hiring incubation services, with support in the form of a non-reimbursable incentive to 100.
    The services will be provided by incubators already accredited and belonging to the National Network of Incubators (RNI).
    This initiative aims to maintain the support network for startups and essential services in this phase of crisis, in order to ensure an effective and faster recovery of covid-19 post-pandemic.
  • “Mezzanine” funding for Startups Covid-19
    In the moment of crisis we are going through, it is important to safeguard high-potential startups that have benefited from investments by Business Angels, venture capital investors or other industry partners, or who have been beneficiaries of incentive systems and have gone through technology transfer processes. This measure aims to inject liquidity into these companies through a loan (supplies) convertible into capital, after a period of 12 months, applying a discount rate that allows to avoid the dilution of the promoters. This line will mitigate the effects of the COVID-19 pandemic, supporting start-ups that are positively flagged by the ecosystem and that present a plan to maintain their activity until the end of the year and future recovery of the post-crisis business. Companies can be supported by quotas, involving average tickets of 50,000 to 100,000 euros per startup.
    With this measure it is intended to strengthen the capital of startups of great potential, while ensuring the protection of previously invested capital.
  • Covid-19 -PV instrument
    launch
    Launch of Call from Portugal Ventures for investments in startups, with tickets from 50K€. Initiative financed through the Financial Development Institution (IFD), Portugal Ventures, and National Press-Mint. This measure facilitates the strengthening of the liquidity of startups (bridge financing) in syndication with existing shareholders (at least 30), in the current context of a sharp slowdown in the prospectof investment in new companies by investors. Complementarity with the 54 Business Angels, 15 Venture Capital Funds and the 200M Fund (tickets from 500K€) funded through IFD.

Measures in force and adapted to startups:

  • Background 200M
    It allows to provide the start-ups and technological scaleups with much greater investment capacity in the so-called late seed and Series A and B phases.
    In practice it does the matching/co-investment with qualified private investors allowing rounds of 10M or more, between private and 200M.
    It allows a significant capitalization of companies to support in the current phase of great uncertainty and then enhance their post-Covid growth.
  • Co-investment fund for
    social innovation
    It allows to provide social impact startups with much greater investment capacity in the so-called seed phases up to Series A, through matching between private operators and FIS. It allows a significant capitalization of companies with a strong strand of social impact to support in the current phase of great uncertainty and then enhance their post-Covid growth.
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