Partners in the Brainport region have joined forces to aid innovative startups. The goal of the so-called Bright Move emergency fund is to support startups for three months in order to achieve a structural solution to the financing question. The money was provided by Brainport Development, Eindhoven University of Technology, Rabobank, ASML and Philips, amongst others. A 100,000 euro guarantee from the Eindhoven city council convinced several partners to contribute.
Ever since the corona crisis started, Brainport and the Eindhoven city council have been concerned about the position of startups. These run into problems because investors are backing out. Government emergency funds require a company to show a significant decrease in revenue as a result of the pandemic. However, many startups cannot apply since they don’t have any turnover.
The national fund for startups and scaleups, managed by the Brabant Development Agency (BOM) in North Brabant, provides credits between 50,000 and 2 million euros. The Bright Move emergency fund offers loans between 15,000 and 30,000 euros, complementing the national funding to help as many startups as possible. Both funds will start this week.
To qualify for the Bright Move fund, startups need to meet some conditions. For example, they cannot exist for longer than five years, they must be a registered LLC and they must employ personnel. Applications for loans are assessed by a committee and the loans must be repaid in twelve installments in 2021.