Many jobs are linked to startups. For this reason, they are "extremely important for the economy." Moreover, "startups create tomorrow's markets and are a dynamic factor for the business location", Minister Schramböck says.
More specifically, there will be two relief funds available to startups. One is the aws COVID-19 Relief Fund (aws = Austrian promotional bank) endowed to the amount of EUR 100 million, and a EUR 50 million Venture Capital Fund. The two funds together comprise a total volume of EUR 150 million.
aws COVID-19 Relief Fund
EUR 50 million will be supplied by the public sector, thus leveraging another EUR 50 million in investments from the private sector, comprising a total of EUR 100 million. Margarete Schramböck, Federal Minister for Digital and Economic Affairs, announced that the fund will already be up and running next week.
Startups founded in Austria are entitled to aid. However, private investors can come from both Austria and abroad.
The Venture Capital Fund with EUR 50 million in resources focuses on Austrian startups which could, in all probability, successfully conclude a round of financing if there were no COVID-19 crisis. However, the fund has to first be put out to tender. According to Minister Schramböck, this process should be completed in two weeks. The aws will be responsible for managing the fund.