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Das siebenköpfige Team von Fund F: Der Fonds investiert in Gründerteams mit mindestens einer Frau.  © Marcella Ruiz Cruz
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Austria as a Growing Hotspot for Startups

28. April 2025

Austria’s startup scene is evolving dynamically. With robust funding programmes, new government initiatives and a growing number of investment funds and support schemes, the country is becoming increasingly attractive to founders and investors alike. 

Austria has established itself as a promising base for startups in Europe. The new Austrian federal government is placing even greater emphasis on startup support—such as the planned umbrella fund, which will mobilise venture capital for new businesses and spin-offs. Private initiatives like Fund F support gender-diverse founding teams. Combined with a strong research landscape, attractive funding opportunities and successful spin-offs, these conditions give Austria a clear competitive edge. 

Government Support for Startups 

The federal government is committed to further strengthening the startup ecosystem. One key focus is promoting female entrepreneurship by improving access to capital, networks and training. Company formation processes are being accelerated and fully digitalised, allowing founders to register their businesses within five working days. The mandatory notarial deed is also under review to streamline the incorporation process. 

A highlight is Austria’s new startup investment umbrella fund. The fund draws on both national and international sources of capital and is supported by the European Investment Fund (EIF) and public investors. In addition, the government is exploring the creation of a venture and private equity hub to improve access to international funding. Tax incentives, such as the 14% R&D tax credit, are providing additional growth stimulus. International collaboration is also being expanded to promote knowledge and technology transfer. 

To help navigate the ecosystem, the Startup Guide 2025Startup Guide 2025 () by Trending Topics offers valuable insights and practical advice on financing, legal structures and finding investors. 

From Female Power to AI 

One example of the growing market for women-led startups in Europe is Fund FFund F (), co-founded by Nina Wöss and Lisa-Marie Fassl. The fund has already raised €28 million—far surpassing its original €20 million target. It is backed by the European Investment Fund (EIF) and institutions such as Austria Wirtschaftsservice (aws). Fund F focuses on early-stage startups with at least one female founder and has already made 14 investments—with an average initial investment of €300,000.

“The share of female founders in Austria’s startup community is at an all-time high. The positive response to Fund F further proves that the country is establishing itself as a highly attractive location for female entrepreneurship and is increasingly gaining importance as a destination for investment in women-led startups.”

Nina Wöss Co-Founder of Fund F
Co-Gründerinnen von Fund F: Lisa Fassl (links) und Nina Wöss
© Marcella Ruiz Cruz
Co-Gründerinnen von Fund F: Lisa Fassl (links) und Nina Wöss
© Marcella Ruiz Cruz

The AI startup Neural MagicNeural Magic () has been acquired by the US-based software company Red Hat. Its technology enhances the efficiency of Large Language Models (LLMs) by reducing both hardware costs and energy consumption. Neural Magic benefited from research conducted at MIT and the Institute of Science and Technology Austria (ISTA). It is the first startup to collaborate with ISTA and go on to achieve a successful acquisition by a global company.  

Momentum in the Startup Sector 

Austria’s startup scene is gaining considerable momentum. The Calm/Storm Ventures 2 fund, which has already raised €20 million, is providing a boost to the HealthTech sector. A new joint venture between SpeedinvestSpeedinvest () and TU Wien—Noctua Science VenturesNoctua Science Ventures ()—will foster spin-offs and strengthen collaboration between universities and industry. In addition, the Spinoff Factory at TU Wien is being expanded as an innovation hub. Its goal is to support spin-offs from Austrian universities and promote knowledge transfer. The newly launched AI Factory Austria (AI:AT), with €80 million in funding, will provide startups with access to cutting-edge computing capacity. These initiatives—supported by the government’s umbrella fund, the Future Austria Fund, and co-financed by the European High Performance Computing (EuroHPC) Joint Undertaking—reinforce Austria’s position as an attractive destination for startups. 

Read more about startups in AustriaRead more about startups in Austria ()  

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