SMART&START ITALIA, ITALY

Smart&Start Italia offers interest free loans to pre-start-up entrepreneurs and young start-ups (under 60 months old), for projects costing between EUR 100 000 and EUR 1.5 million. Smart&Start has a total budget of EUR 200 million.

To be eligible, start-ups must be innovative, and (i) have a strong technical dimension, (ii) operate in the digital economy or (iii) be spin-offs from research. Candidates apply online. Support is available to candidates requiring additional help to fill out the application. The scheme is not competitive, applications are reviewed in chronological order and evaluated based on the viability of their business plan within 60 days of submission. Successful candidates receive an interest-free loan of up to 80% of the total investment, or up to 90% if the start-up is (i) composed exclusively of women or people under 35 years old, or (ii) engages a recent (less than six years) Italian PhD graduate returning to Italy for the project. The loan may be used to cover investments into the business (e.g. machinery, software and hardware, intellectual property, personnel cost, advice) as well as operating costs (e.g. raw materials, rent and hosting). The funding is disbursed in instalments over 24 months and must be repaid within 10 years after the disbursement of the last tranche. A non-repayable grant of 30% of the loan is granted to start-ups operating in less developed regions of Italy (with support from EU Structural Funds).

In addition, start-ups in operation for less than one year are offered technical and management support. The support includes mentoring by a relevant expert and personalised trainings on topics of interest to the company through webinars. A point of contact at Invitalia monitors the process to ensure the start-up’s needs are met.

How did the programme adapt to the pandemic? To mitigate the impact of the COVID-19 crisis on innovative start-ups, the Italian government launched the Relaunch Fund in October 2020. The fund targets firms with growth potential (i.e. with a potential for revenue and employment growth, a sustainable three-year business plan, and strategic partnerships, contracts, or intellectual property). During its first six months of operation, the fund focused on supporting start-ups that qualified for Smart&Start in the first half or 2020 as well as businesses that experienced a reduction in turnover of at least 30% when compared to 2019.