Government launches EUR 25 million startups support measures

The Ministry of Economy announced new measures worth 25 million euros aimed at
the more than 2,500 Portuguese startups, as a way of responding to the impact of
COVID-19.

The Ministry of the Economy and the Digital Transition states in an official
announcement that the set of new measures, with a total value of more than 25 million
euros, could represent an average of 10 thousand euros of potential support for each
startup. They also point out that this support aims to enable startups to overcome the
consequences of the COVID-19 pandemic and resume normal activity after this
exceptional period.

Among the measures are the StartupRH Covid19, financial support through an
incentive equivalent to a minimum wage per employee (up to a maximum of 10
employees per startup) and the extension of the Startup Voucher, which extends by
three months the benefit of the previous scholarship already awarded.
Another measure is Vale Incubation – COVID19, which translates into support for
startups under five years old, through the hiring of incubation services based on a non-
refundable incentive.

It also includes Mezzanine funding for Startups, which is a loan convertible into share
capital after 1 year, applying a discount rate to avoid dilution of promoters.
Another measure is the launch of the instrument COVID-19 – Portugal Ventures, which
translates into the launch of a notice by Portugal Ventures for investments in Startups.
This initiative is financed through the Development Financial Institution, Portugal
Ventures and National Press – National Mint.

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