8 Things we love about Austria’s startup ecosystem

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This week we’re quoting Kambis Kohansal Vajargah (Head of Startup-Services and Deputy Head of Founder-Services at Austrian Federal Economic Chamber)

What Kambis said: 

“In Austria, government support for startups is strongly accessible, with various grants and funding programs available and being recognised as one of the finest globally.” 

Austria’s approach makes it easy for startups to access support 

When we asked Kambis to tell us three things startups need in order to thrive, he said: 

“From my experience with launching startups, I've learned that tailored support is crucial: 

• “First, startups need access to industry-specific mentors who can provide practical advice and insights.”
• “Second, flexible funding options are essential to navigate the unpredictable nature of business growth.”
• “Lastly, a supportive community that encourages collaboration and networking can significantly enhance a startup's potential.” 

And within the Austrian Federal Economic Chamber’s services for startups and founders, Kambis is working to ensure that all startups can benefit from this kind of tailored support. 

“The country's approach, focusing on ease of access and comprehensive support, serves as a model for other nations looking to foster innovation and economic growth,” he noted. 

So the country’s startup ecosystem is thriving and growing 

More than 3,300 startups have been launched in Austria since 2011, employing around 31,000 people. In 2021, funding levels reached a record high – with over €1.2 billion worth of investments, including seven deals of more than €50 million. 

In the same year, Austria celebrated its first two €1 billion unicorns, as reported by the Financial Times: cryptocurrency trading platform Bitpanda; and online tutoring platform GoStudent.

The government has taken a number of steps to simplify the process of founding a startup in Austria, including establishing the New Companies Promotion Act (NeuFög), and actively promoting the nation as an ideal location for startups to secure early stage funding and government support. 

“The nation's dedication to supporting startups is further highlighted by the establishment of a new legal entity, FlexCo,” Kambris added, “tailored specifically for the unique needs of startups.”

“This innovative legal structure offers a flexible and competitive framework, making it an attractive option for entrepreneurs and investors alike. Complementing these efforts, Austria has introduced a tax-favourable employee stock option plan, which serves as an incentive for employees to invest in the growth and success of their companies.”

8 things we love about Austria’s approach to startups 

1. As highlighted by Kambris, the country offers strong public sector support for startups. For example, in 2023 the Austrian Research Promotion Agency alone gave more than €100 million in funding to early-stage companies, those scaling up, and spin-offs.
2. There’s a real emphasis on impact-driven startups, with support for companies with a social or ecological mission. Over half of Austria’s startups are categorised as ‘green’ or ‘social impact’ startups.
3. Policies actively encourage diversity and inclusion in the startup ecosystem – 33% of startups have female founders or co-founders, for example.
4. Legal processes are simplified – through FlexCo, as Kambris mentioned – to make it easier and quicker for startups to get established and start generating revenue.
5. Relationships between universities, research organisations and businesses are encouraged – so around 22% of startups are formed as spin-offs from academia. These close links between entrepreneurship and academic knowledge enable innovation to thrive.
6. Tax incentives are offered for R&D – with 14% tax grants for R&D expenses – which creates more financial space for startups to invest in innovation.
7. The government hosts and funds a wide range of networking events and collaborative platforms which enable startups to connect with peers, mentors, and partners.
8. The support for startups isn’t limited to funding. A comprehensive system provides expert guidance, practical support to establish companies, networking opportunities, and even business coaching – forming a holistic approach to startup support at various stages of business development. 

Bringing startup support to the forefront of the global tech industry 

At LEAP, we’re dedicated to supporting the growth of startups in international markets – and we provide a platform for tech entrepreneurs, innovators, and investors to connect and collaborate. 

We asked Kambris how he’d like to see LEAP supporting startups in the future, and he said:

“Looking ahead, I envision LEAP playing a pivotal role in nurturing startup ecosystems by facilitating connections between startups, investors, and experienced mentors. LEAP offers a platform for startups to showcase their innovations to a global audience, helping them gain visibility and traction in their respective industries. Finally, the rise of LEAP also represents the rise of the Middle East as an emerging hub for technological innovation.” 

Read our full interview with Kambris: How to build a robust startup ecosystem

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Catch you next week,
Richard McKeon
Vice President of Marketing & Communications, Tahaluf

Mark your calendars for 📅 9-12 February 2025.