Startup grant 1

Before you apply, you should have completed the work in the idea phase.

This means you have:

• developed a clear understanding of the problem through dialogue with customers
• demonstrated that the problem is important and burdensome for the customer (for example, by showing how they currently spend time, resources or money on it)
• developed specific hypotheses about the solution
• gained a clear understanding of how the problem is currently solved, including existing solutions and alternatives
• developed a plan for how you will test your hypotheses

If you have not yet completed this work, it is probably too early to apply. We recommend that you continue developing your idea, with support from our incubators or our innovation hubs if needed.

If you can answer yes to the points above and have a clear plan for what to test next, you are well placed to apply.

We have created a simple guide to Startup grant 1 covering customer interviews, competitor analysis and the market, among other topics. You can use it to structure your work and attach it to your application as supporting documentation.

Why?

The requirements for the work and documentation for Startup grant 1 are based on insights from successful entrepreneurs and our many years of assessing startup projects.

There are two objectives:

• Help you set the right priorities and reduce your own risk early on.
• Enable you to prioritise projects with the greatest potential.

The work you have done in the idea phase lays the foundation for the next steps – testing your hypotheses and reducing uncertainty by learning from the market.

A strong project clearly sets out what you are uncertain about and how you will test it.

In addition to expectations about how far you have progressed, the scheme is for startups that:

• are less than five years old
• is incorporated as a private limited company (AS) before the application is submitted (sole proprietorships (ENK), general partnerships (ANS), partnerships with shared liability (DA), etc. are not accepted)
• is a genuinely new business with ambitions for growth

Ownership and structure

The startup may be owned by a holding company that is more than five years old, provided that:

• the holding company is owned by the founders themselves
• it is a genuine new business with ambitions for growth

In such cases, any support must be provided as de minimis aid.

Ownership restrictions

• Subsidiaries that are 50% or more owned by an established business are not eligible.
• Where ownership is between 25% and 50%, the business must be clearly separate from the owner's other operations.
• The chair of the board and/or CEO must not be the same as in the parent company or owner, unless the parent company or owner is the founder.
• The business idea must be significantly different from the existing business.

We prioritise entrepreneurs and businesses that develop solutions offering something significantly new to the market, and that have the ambition and potential to grow – including internationally.

If your project is primarily about setting up a conventional business in an existing market, it will not normally be eligible for this scheme. This includes businesses such as:

• primarily create one job for the entrepreneur (‘lifestyle business’)
• is a hobby-based or part-time activity
• offers services that are already adequately provided by the public sector

We fund development and growth – not the establishment of ordinary business operations in well-functioning markets.

This means that we do not normally prioritise projects in established industries that lack clear innovation, such as:

• traditional retail (imports, agencies, e-commerce)
• trade services
• transport services
• financial services
• liberal professions (lawyers, doctors, etc.)
• personal services (hairdressing, skincare, etc.)
• training and consultancy services
• food service (cafés and restaurants)

However, we can support new solutions or technologies that drive innovation and improve efficiency in these areas, but not:

• simple solutions that are easy to copy
• standalone apps with no clear innovation
• digital marketplaces or platforms with no new competitive advantages
• solutions with low or unclear societal value

Formal limitations

• Companies with outstanding payment defaults cannot apply for or receive a grant.
• We do not provide grants for the acquisition of an existing business.

You need to find out whether there is a genuine market and whether customers will actually use the solution. This means testing assumptions and gaining insights from customers and the market.

Grant for activities

The grant is primarily used for activities that provide insights from customers and the market.

In some cases, you may also need to clarify requirements that must be met before the solution can be used, such as IPR or regulatory requirements.

Examples of activities:

• customer testing
• pilot projects and customer dialogue
• developing a simple solution to test hypotheses
• collaboration with customers or partners
• clarification of IPR and regulatory matters (where this is essential for further development and use)

Please note that businesses receiving regional aid, such as startup grants, business development grants or investment grants, are subject to specific rules on how the funding may be used.

Read more about regional development funding

What you need to find out and achieve

The work involves:

• identify what you are most uncertain about
• test this through customer engagement
• get clear indications of whether the problem matters
• understand who your customers are and how to reach them

The aim is to provide a stronger basis for deciding the next steps, based on actual customer feedback.

Scope

The grant only covers the purchase of services from external suppliers. Your own time and internal costs are not covered.

The aim is to reduce uncertainty through market insights – not to develop a finished solution or seek protection before the need has been validated.

The grant can cover up to 100% of invoiced costs, up to a maximum of NOK 150,000.

• Your own staff costs and costs from related parties are not covered
• Costs incurred before the application is submitted are not covered
• Value added tax (VAT) is not covered

At least 50% of the project costs must be paid upfront, as this portion will not be disbursed until the project is completed. It is therefore important that you have sufficient liquidity to carry out the project.

We manage both national and county authority funding. We therefore assess businesses in rural areas according to regional criteria, which may vary between counties. Read more about regional development funding.

What you need to include in your application

To assess your application, we need you to show that you are taking a systematic approach to the problem, solution and market. Below, you can see what this work involves.

Understanding the problem (customer insight)

You must show that you are addressing a real and important problem.

This means talking to users to understand how the problem actually arises and what it costs them in terms of time, money or effort.

The work involves finding out:

• what customers actually do when the problem arises
• whether others experience the same problem
• what it costs them in practice
• whether it is important enough for them to spend time or resources addressing it

The aim is to show clear patterns and why the problem matters to the customer.

Example attachment: 3–5 brief insights or findings from customer interviews, see the guide.

Solution and uncertainty

You must develop a solution that delivers clear value to the customer.

This means clearly defining what you will build and what makes the development process challenging.

The work involves:

• clarify what the product is and what you propose to create
• demonstrate tangible value for the user (time, cost, quality)
• identify what is technically challenging or new
• identify what needs further testing and development

The key is to demonstrate a genuine development process involving uncertainty and novelty – not simply implementing or combining existing solutions.

Examples of attachments: a simple sketch, product description or overview that makes the solution easy to understand. View the tool: system architecture diagram.

Current alternative

You need to understand how the problem is currently being solved.

The work involves:

• map what customers actually do today (including simple or manual solutions)
• identify common themes across customers
• understand what causes friction, takes time or drives costs
• see what the customer prioritises to address the problem

The aim is to show clear patterns in how the problem is currently being addressed and why existing solutions do not meet the need well enough.

Example attachment: competitor analysis/matrix (a template is available in the guide).

Segment and market

You must show that you are starting with a clearly defined customer group and that the market you are entering has significant growth potential, ideally supported by simple, easy-to-understand figures.

The work involves:

• choose who you start with
• define the target market and explain why
• show how you will reach your first customers
• show how large the market could become
• highlight growth opportunities, including internationally

The aim is to show a clear starting point while providing a solid foundation for further growth.

Intellectual property rights (IPR)

You need to identify what makes your solution unique and how this can give you a competitive advantage.

The work involves:

• identify what sets you apart
• understand what can be protected

The aim is to show that the solution is not easy to copy. Take our digital course: Introduction to IPR.

Team and implementation

You must show who is on the team and why you have what it takes to move the project forward.

This includes the expertise you already have and any additional expertise you may need to bring in to reduce risk.

You can receive up to 50% of the grant when the project starts. The remaining 50% will be paid when the project ends.

You must provide documentation for all costs. If any documentation is missing, we may reduce the grant.

Project period

The approved project period is 9 months. You can apply for an extension of up to 3 months (a maximum of 12 months in total).

Final reporting

At the end of the project, you must submit a final report and a payment request via ‘My page’.