New startup funding

'We continuously develop our services to meet the needs of start-ups,' says Kaja van den Berg, EVP for Commercialisation and Growth at Innovation Norway. 'Last autumn, Menon evaluated our services for start-ups, and we also conducted an extensive consultation and insight-gathering process with customers, investors and business partners across the country. We have listened and are delighted to launch a new and improved offering,' she says.

‘Entrepreneurs are vital to Norway’s future capacity for green and digital value creation. Innovation Norway has now made sensible adjustments to its offering for start-ups. The changes appear both comprehensive and simplifying, and fully align with the government’s goal of making the business support system more user-oriented. I look forward to seeing how the start-up and innovation communities respond to the changes, and I am very interested in receiving feedback and suggestions,’ says Minister of Trade and Industry Jan Christian Vestre.

Based on the feedback, we are introducing startup funding in three phases, with clear milestones for the step-by-step development of products and markets. Previously, there were two phases. Our aim is to support startups for longer and provide them with expertise, capital and connections to mentors. 'This is how we will help build more resilient, sustainable growth companies that succeed in international markets over time,' says van den Berg.

From Monday 15 May, the schemes will be as follows:

• We are dividing the funding into three phases: Phase 1 offers a Startup grant of up to NOK 200,000, Phase 2 offers a Startup grant of up to NOK 1 million, while Phase 3 pilots a new Startup grant of up to NOK 2 million to help companies with strong growth potential achieve commercial success in the market.
• No personal guarantee required for startup loans
• Six-year repayment period, with no interest for two years and no principal repayments for three years
• Option of a credit facility of up to NOK 2 million

Menon's evaluation found that our support is well aligned with companies' needs at an early stage, but does not take them far enough on their journey. We are therefore piloting a new phase 3, offering grants to start-ups with particularly high value creation potential, long development cycles and capital-intensive commercialisation. To qualify, companies must finance two-thirds of the project with private capital.

The grant will prepare companies to secure loans or investment capital based on their earnings and operating profit. We will use an advisory panel of external experts to select the companies. This will provide valuable insights and competence building for both the companies and our advisers.