How a startup founder in Spain can obtain grants and subsidies

a step-by-step guide

How a startup founder in Spain can obtain grants and subsidies: a step-by-step guide


Grants and subsidies are some of the most accessible ways for startups to secure the necessary funding, especially in a country like Spain. Various levels of support are available: national and regional programs, private subsidies, and international grants. But what are the chances of securing such funding? How can you avoid mistakes in the application process? Let’s break it down step by step.

Key points to consider

 

Grant and subsidy statistics for startups in Spain: Spain actively supports startups in the tech and innovation sectors, but not all innovation grants are exclusively for startups. In 2023, about 35% of all grants were awarded to young companies working in tech and innovation. The most common grants, up to €100,000, account for around 65% of applications, medium-sized grants (€100,000 to €500,000) represent 25%, and large grants (over €500,000) make up only 10%.

 

At what stage do startups typically receive support?: Most grants are given to startups in early growth stages, but obtaining funding before an MVP is rare, with chances below 15%. For newly registered companies without financial records, the likelihood is even lower.

 

Reasons for rejection: Approval rates range from 25% to 30%, depending on the program. The primary reasons for rejection include a weak business plan (40%), insufficient innovation (25%), and improper use of financial resources (15%). Around 35% of applications are declined due to technical or administrative errors. Additionally, if funding is limited, the most promising startups are prioritized. Immigrant founders can apply but may face informal criteria such as prior business experience in Europe or personal investment in the project. Roughly 20% of rejections stem from founders not investing their own funds.

 

How long does it take for an application to be reviewed?: On average, the review process for a grant takes around 6 months, but some programs, like NEOTEC, can take up to 9 months or longer.

 

Step 1: Evaluate suitable programs
Spain offers a wide range of grants and subsidies for startups:

  • National programs: ENISA supports innovative startups at all stages by offering low-interest loans. The NEOTEC program provides up to €250,000 in non-repayable aid for tech startups.
  • Regional programs: Catalonia, Madrid, and Valencia offer the most developed grant programs. In Catalonia, for example, the Barcelona Activa accelerator provides funding and mentorship support.
  • Sectoral programs: Startups working in sustainable development, ecology, fintech, or agritech may qualify for targeted grants aimed at specific industries.

Tip 1: Explore agency websites like CDTI, which provide comprehensive information on current opportunities.
Tip 2: After reviewing each program’s requirements, ensure your startup meets its criteria.

 

Step 2: Prepare the application documents
To apply for a grant, you will need the following:

  • Business plan: Should include product descriptions, growth strategies, market analysis, financial forecasts, competitor analysis, team details, and risk assessments.
  • Financial model: Demonstrating the startup’s growth potential.
  • Project roadmap: A detailed development plan outlining key milestones.
  • Financial reports: If the startup is operational, financial reports are required. If it is newly registered, detailed financial forecasts and plans must be submitted.

If no financial reports are available (e.g., for a newly registered startup), you must provide detailed financial plans for the coming years.
In addition to the business plan, the following documents are also needed:

  • Company registration papers.
  • Certificates proving no outstanding debts to tax authorities.
  • Additional documents: In some cases, funders may request extra data, such as partner letters, research results, or patents. This occurs in about 20% of cases, especially for large grants.

 

Step 3: Application strategy
To increase your chances of success, follow these principles:

  • Transparency: Clearly define your startup’s goals and potential.
  • Eligibility: Ensure your project meets the grant’s criteria.
  • Innovation: Highlight the unique aspects of your product or technology.
  • Job creation: If your startup plans to hire employees, this is a significant advantage for your application.

Tip: Use professional assistance. In 2023, about 40% of startups turned to specialized agencies for help with their applications. Of these, 65% were approved, while only 25% of those applying independently were successful.

 

Step 4: Additional requests and requirements
Often, after submitting an application, applicants may be asked to provide additional documents, such as proof of legal company registration, adjustments to financial calculations, or evidence of further investments. Being prepared for such requests increases your chances of success.

 

Step 5: Tracking and managing funds
Once a grant is awarded, strict reporting on how the funds are used is essential. Non-compliance with the grant’s terms can lead to penalties or even the return of funds. Careful planning on managing grant funds is crucial to avoid such consequences.

 

Conclusion
Securing a grant is a complex process that requires time and effort. However, with thorough preparation and the right documentation, you can significantly improve your chances of success. Finetic Consulting is here to assist you at every stage—from selecting the right program to applying and tracking fund usage.

Ready to apply for a grants? Contact us for professional assistance!

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