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Deep technology startups create unique innovations for addressing today’s global problems. They use findings and intellectual property rights generated by research in developing new ways to produce materials, to cure diseases or to slow down climate change, for example. Deep tech startups have significant growth potential and they can revolutionise entire industries.

Deep tech startups tend to have a much longer and riskier commercialisation phase than other companies. Therefore, it is important to support the development of new success stories, especially in the critical early stages of the business. With the Deep Tech Accelerator funding, Business Finland wants to promote the use of research results in the startup business and, in particular, to accelerate the market entry of deep tech startups and speed up the launch of scalable international business.

Deep Tech Accelerator (DTA) funding call

Deep Tech Accelerator funding is targeted at startups less than five years old that have already launched their operations and have been founded to commercialise the latest research results and know-how. Research-based intellectual property rights and know-how play an essential role in the funded companies’ value creation, market potential and competitiveness. The companies are still in the early stages of product development, and their operations involve high technological and market-entry risks. The companies typically make significant R&D investments and have a product development project in progress. The companies often strive to make a large social impact and seek to address significant global problems.

The goal of the funding is to help deep tech startups to enter markets faster. To achieve this, the key requirements are to increase market and customer understanding and adapt the solution under development to these needs, to strengthen the team, to achieve marketability through measures related to the solution and the company (e.g. approvals, quality management system), the systematic use of intellectual property rights, and planning and procurement of financing. DTA funding cannot be used for product development; this must take place in separate product development projects
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DTA funding

The DTA funding package consists of three EUR 400,000 phases, the first two of which are grants and the third is a loan. Each phase is estimated to last between 12 and 18 months. Business Finland’s funding contribution will cover 75% of the total estimated budget.

In this funding call, the company will apply for funding of EUR 400,000, i.e. only for the first phase, for which the cost estimate will be EUR 533,334. In the project plan of the application, the company must also present a preliminary description of the content and goals of the next phase to indicate that it is seriously planning the implementation of the entire project.

Together with Business Finland, the company will determine the goals for the funding phase on the basis of the business plan, and these will be included in the funding decision. Business Finland will assess the achievement of the goals at the end of the funding phase. The achievement of the goals is among the prerequisites for progressing to the next phase. In addition to achieving the goals, other prerequisites for progressing to the next phase include the company’s financial situation and potential for rapid international growth.

What can the funding be used for?

The funding can be used for the following purposes, for example:

• Contacting customers and verifying the suitability of the solution with customers, customer negotiations, acquisition of pilot projects, taking measures to obtain references
• Determining/finding the optimal application of the technology and validating the solution with customers
• Finding the right customer segment and business focus, developing the business, operational sales and marketing
• Strengthening the team with sales, marketing, and business experts, for example
• Ensuring the marketability of the solution
• Planning and acquisition of additional private financing

Evaluation of applications

In the funding call, we will grant funding to a maximum of 12 promising deep tech startups that meet the criteria. The funding applications will be evaluated on the basis of the following criteria:

Origin of the idea and company – The company was founded to commercialise a business idea based on the latest scientific research and has strong intellectual property rights based on this.
Intellectual property – Intellectual property rights and other intangible rights relevant to the business are under the control of the company, and the company has sufficient freedom of operate in international target markets. Possible agreement on the transfer of rights is valid, and the company has the right to the results of its own further development work.
Business – Value creation, business potential and competitiveness are based on documented and state-of-the-art scientific research. The company has independent decision-making powers over its business activities and is not a subsidiary.
Solution – The functionality of the technology has been verified, and the performance and competitiveness of the solution have been preliminarily demonstrated. The solution is not yet a ready-to-sell product or service, and its development through R&D projects is still in progress. No business has been carried out with the solution, except for paid pilot projects.
Team – The team has credible expertise in developing research-based technology and business. The share of ownership of the full-time founding team and the structure of the company’s ownership base must allow for additional investments in the company.
Risk level – A significant risk is associated with the technical functionality of the solution and the market entry.
Effectiveness and targeted change – The company is aiming for significant and scalable international business. The growth targets are realistic in relation to the proposed investments in development and market entry The funding will have a significant impact on the implementation of the project and the achievement of the goals.
Total financing – The company must have a carefully prepared financial plan and sufficient total financing to implement the phase, as well as the prerequisites and willingness to raise investments in the company. Business Finland’s funding will cover up to 75% of the project costs. The grant is paid afterwards to cover actual costs based on interim and periodic reports.

In addition, the following requirements apply to DTA funding:

• Your company must be a limited liability company registered in Finland and belong to the prepayment and employer register.
• Your company must have been in operation for less than five years before the funding decision for the first phase is made. Business Finland can only accept the costs of the DTA project until the company is eight years old. The company’s age is calculated from the date of its business ID registration.
• Your company is small: Up to 50 employees, and a turnover or a balance sheet total of up to EUR 10 million.
• At least 10% of all your company’s costs have been allocated to research and development during one of the previous three years (for the ended financial year).
• Your company has not continued the business activities of another company, and the product has not previously been commercialised in another company.
• Your company has not been established through a merger. Exceptions include a situation in which the merged companies are less than five years old.
• Your company is not listed and it has not distributed profits. Distribution of profits refers to the payment of dividends or assets from an unrestricted equity reserve, or the purchase and redemption of treasury shares.

The funding granted by Business Finland is discretionary, and the decision-making follows the normal evaluation and decision-making process. Other competing funding applications will also be taken into account in the evaluation of the applications. Business Finland does not make conditional decisions in connection with the DTA funding call.

If the company has already been granted NIY or Growth Engine startup funding, DTA funding cannot be granted.

Application period

The application period will begin on 1 June 2024. Submit the application and its appendices via Business Finland’s online service by 8 September 2024 at 11:59 p.m. Please read the application instructions carefully and take your time to prepare the application. Appendices to the application include a business plan, a project plan, an auditor’s report, a cash flow forecast, a list of intellectual property rights, a list of rights granted by a technology transfer agreement/a declaration of the rights granted by the agreement.

Please note that we will evaluate the funding applications after the application period is over and make the funding decisions by the end of 2024. The age of the company must be less than five years from the date of registration before 13 December 2024.

Before submitting your application

Discuss with Business Finland about your company’s suitability for DTA funding. Please contact the contact persons mentioned in the funding call information or your own BF contact person as soon as possible if you are interested in the funding.

Please also read the application instructions carefully to be aware of how to fill in the different sections of the application.

Please refer to the funding terms and conditions. It describes what costs Business Finland can fund, how we will monitor the costs of your project, and how you must report on the progress of the project.

Please note that we cannot grant your company funding if:

• Your company has not submitted financial statements to the Finnish Patent and Registration Office, or your company’s financial statements have not been audited in accordance with the Auditing Act.
• Your company has not submitted an up-to-date statutory notification of beneficial owners to the Trade Register.
• Your company has tax debts for which a payment plan has not been agreed on with the tax authorities.
• Your company has arrears, payment defaults or other outstanding financial obligations related to previous loans granted by Business Finland.

Apply for funding via the online services