Measures to support Portuguese Start-Ups

New measures relating to Portuguese start-ups were approved by the Council of Ministers on 21 April, in order for these entities to overcome the consequences of the Covid-19 pandemic and to continue their normal activity after this exceptional period (representing an overall support of more than EUR 25 million and an average of EUR 10,000 euros per start-up):

• Start-up RH Covid19 measure, under which financial support will be granted through an incentive equivalent to one minimum wage per employee, up to a maximum of 10 employees per start-up;
• Extension for 3 months of the previous scholarship benefit already awarded, in the amount of EUR 2,075 per entrepreneur job;
• The “Incubation Voucher – Covid-19”, applicable to recent start-ups (incorporated less than 5 years ago), through the hiring of incubation services based on a non-refundable incentive of EUR 1,500;
• Convertible loans in amounts between EUR 50,000 and EUR 100,000 per start-up, to be converted after 12 months at a discount rate that avoids dilution of shareholders;
• Portugal Ventures issuing a call for investments in start-ups, with tickets starting at EUR 50,000 (this initiative being funded through the Instituição Financeira de Desenvolvimento (IFD), Portugal Ventures and Imprensa Nacional – Casa da Moeda); and
• Two support measures already in force and applicable to start-ups were revised, as follows: (i) within the 200M Fund, co-investment with private investors in Portuguese start-ups and scaleups, with a minimum amount of public funds of EUR 500,000 and a maximum of EUR 5 million, and (ii) within the co-investment fund for social innovation, the co-investment with private investors in companies with innovative projects with a social impact, with a minimum amount of public funds of EUR 50,000 and a maximum of EUR 2.5 million.

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[Photo: Austin Distel, available at: unsplash.com]