The FFG, Austria’s Research Promotion Agency, is one of the best-kept funding secrets for Austrian startups. Not because it is actually secret, the information is publicly available, but because most founders either do not know about it, assume it is only for research institutions, or are intimidated by the application process.
Having helped multiple startups at Startup Burgenland work through FFG applications, I can tell you two things. First, the money is real and substantial. Second, the process is more accessible than it looks, especially for the entry-level programs designed specifically for startups and small businesses.
Here is the practical guide to getting your first FFG funding.
What the FFG Actually Is
The FFG (Forschungsforderungsgesellschaft) is Austria’s federal funding agency for applied research and development. It distributes hundreds of millions of euros annually across various programs, from basic research funding to applied innovation grants.
For startups, the relevant programs fall into two categories:
Feasibility studies (Machbarkeitsstudien). Small grants, typically EUR 5,000 to EUR 50,000, that fund the exploration of whether an idea is technically and economically viable. These are the entry point for most startups.
Innovation projects (Innovationsprojekte). Larger grants, typically EUR 50,000 to several hundred thousand euros, that fund the development of new products, services, or processes. These require more substantial applications and typically some proof of concept.
The key feature of FFG funding: it is non-dilutive. You receive money without giving up equity. This makes it fundamentally different from venture capital. You keep full ownership of your company while using public funding to develop your innovation.
For bootstrapping Austrian founders, FFG funding can provide the runway needed to reach product-market fit without external investors.
The Programs That Matter for Startups
Let me be specific about which programs to target.
Basisprogramm (Base Program). This is the FFG’s general-purpose program for R&D projects. Funding covers up to sixty percent of eligible project costs for experimental development and up to eighty percent for industrial research. There is no fixed application deadline; you can apply anytime. This flexibility is valuable for startups that need funding on their timeline, not on a grant cycle.
Startup Scheck (Startup Check). A simplified grant specifically for startups, covering up to EUR 10,000 for R&D activities including prototyping, technical validation, and feasibility assessment. The application is shorter and simpler than the Basisprogramm.
Impact Innovation. For projects with societal impact alongside commercial potential. Funded at higher rates and sometimes more accessible for startups whose innovations address social or environmental challenges.
Markt.Start. Supports startups in the market entry phase, covering activities like market validation, customer acquisition, and business model refinement. This is particularly relevant if you have a working prototype and need funding to reach your first customers.
Each program has specific eligibility criteria, which I will cover below. The key insight is that there is a program for almost every stage from idea to market, and many founders are eligible for programs they have never heard of.
Eligibility: Are You Qualified?
The most common misconception is that FFG funding is only for deep-tech companies or research spin-offs. It is not. Any company conducting R&D activities, which the FFG defines broadly, can be eligible.
R&D broadly defined. If you are developing something new, whether it is a new software product, a new service methodology, a new application of existing technology, or a new approach to solving a known problem, that likely qualifies as R&D under FFG definitions. You do not need to be building quantum computers.
Company requirements. You need an Austrian-registered company (or be in the process of registering one). Einzelunternehmen, GmbH, or other legal forms can apply. The company should be the entity conducting the R&D activities.
Project scope. The project needs a clear research or development question, a plan for addressing it, a timeline, and a budget. It does not need to be guaranteed to succeed. Feasibility studies exist precisely because the outcome is uncertain.
Austrian R&D component. The R&D activities need to take place substantially in Austria. If you are outsourcing all development to another country, FFG funding is not appropriate.
The best way to check your specific eligibility is to contact the FFG directly. They have a Beratung (advisory) service that is free and genuinely helpful. They will tell you which programs you qualify for before you invest time in an application.
The Application Process: Step by Step
Here is the practical walkthrough for a Basisprogramm application, which covers most startup use cases.
Step 1: Initial consultation with FFG (optional but recommended). Call or email the FFG and describe your project in plain language. They will tell you which program is the best fit and flag any obvious eligibility issues. This conversation is free and saves you from applying to the wrong program.
Step 2: Prepare the project description. This is the core of the application. It should cover:
- The problem or opportunity you are addressing
- The state of the art (what exists today and why it is insufficient)
- Your proposed approach (what you will do differently)
- The work plan (phases, milestones, timeline)
- The expected results (what you will have at the end)
- The exploitation plan (how you will commercialize the results)
- The project team and their qualifications
- The budget breakdown
The project description is typically ten to twenty pages for a Basisprogramm application. For the Startup Scheck, it is shorter.
Step 3: Prepare the budget. FFG budgets follow a specific format. Eligible costs include: personnel costs (including your own time valued at a defined rate), subcontracting, materials, equipment depreciation, travel, and overhead. Each cost category has specific rules about what qualifies.
The budget is where most first-time applicants make mistakes. Be thorough but realistic. Overinflated budgets get flagged. Underestimated budgets mean you do not receive enough funding to complete the project.
Step 4: Submit the application. Applications are submitted through the FFG’s online portal (eCall). The system guides you through the required sections. There are no fixed deadlines for the Basisprogramm; applications are evaluated as they are received.
Step 5: Evaluation. FFG evaluators assess your application on: novelty and innovation level, technical feasibility, economic potential, quality of the work plan, and qualification of the team. You may be invited for an interview or asked for additional information.
Step 6: Decision. Typical processing time is eight to twelve weeks. Decisions can be: approve, approve with conditions, or reject with feedback. Rejections include specific feedback that you can use to improve and reapply.
Writing the Application: What Evaluators Look For
Having reviewed FFG application feedback with multiple startups, I can tell you what evaluators consistently care about.
Clear problem definition. Do not start with your solution. Start with the problem. What is the current situation? What does not work? Who suffers from this? How significant is the problem? A well-defined problem makes the rest of the application logical.
Genuine novelty. The FFG funds research and development, which means your project must do something new. “New” does not mean unprecedented in the history of humanity. It means new to your market, your industry, or your application context. Be specific about what makes your approach different from existing solutions.
Feasible work plan. Evaluators want to see that you have thought through how you will actually do the work. Phases with clear milestones, realistic timelines, and defined deliverables for each phase. The plan should be ambitious but achievable.
Commercial potential. Even for research-focused projects, the FFG wants to see a path to market. Who will buy this? How big is the market? What is your go-to-market plan? You do not need a complete revenue engine, but you need credible commercial thinking.
Qualified team. Who is doing the work, and why are they capable of doing it? Relevant experience, technical skills, and domain knowledge all matter. For solo founders, highlight your specific expertise and any external partnerships or advisors that complement your skills.
One tip from experience: have someone outside your project read the application before submitting. Technical experts often write for other technical experts. FFG evaluators are knowledgeable but evaluate across many fields. Clarity and accessibility matter.
Common Mistakes and How to Avoid Them
Mistake: Describing a product, not a research project. FFG funds R&D, not product development. The distinction matters. Frame your project in terms of the questions you are answering and the knowledge you are generating, not just the product you are building.
Mistake: Underestimating your own time costs. Your time is an eligible cost. Many founders forget to include their own hours in the budget, which both undervalues the project and leaves money on the table.
Mistake: Applying too broadly. “We will develop an AI platform that solves multiple problems for various industries” is too broad. Narrow the scope. A focused project with clear boundaries is more fundable than an ambitious one with unclear limits.
Mistake: Ignoring the state of the art. Evaluators check whether you understand what already exists. Claiming your approach is entirely new when similar solutions exist (even in other industries) damages credibility. Acknowledge what exists and clearly articulate how your approach differs.
Mistake: Not following up on rejections. FFG provides specific feedback on rejected applications. Many founders give up after a rejection. The better approach: revise based on the feedback and reapply. Many successful FFG projects were funded on the second or third application.
Combining FFG with Other Funding
FFG funding works well in combination with other Austrian funding sources.
FFG + AWS. You can receive FFG grants for the R&D portion and AWS support for the commercialization portion. The two agencies coordinate to avoid double-funding but actively encourage complementary applications.
FFG + Regional programs. Regional funding (like programs in Burgenland, Styria, or other Bundeslander) can complement FFG funding for different aspects of the project. Check with your regional Wirtschaftsagentur for applicable programs.
FFG + EU funding. Horizon Europe and other EU programs can be layered with FFG funding for the Austrian portion of international projects. This is more relevant for later-stage startups with cross-border R&D activities.
The combined funding approach can cover a significant portion of your startup’s early costs without dilution. I have seen Startup Burgenland participants successfully combine three to four funding sources to cover their first twelve to eighteen months of operation.
The Timeline Reality
Let me set honest expectations about timing.
- Application preparation: two to four weeks of focused work
- FFG processing time: eight to twelve weeks (sometimes longer)
- Contract negotiation after approval: two to four weeks
- First payment: typically after contract signing, with payments linked to milestones
From starting your application to receiving the first funding: three to five months minimum. This means FFG funding is not emergency capital. It is planned capital that you apply for well in advance of needing it.
My advice: start the application process while you still have runway. Do not wait until you need the money. The startups in our program that applied early and received funding mid-program had a dramatically different experience from those who applied late and received funding after the program ended.
Is It Worth the Effort?
For a first-time application, expect to invest forty to sixty hours in preparation. That is a significant time investment. Is it worth it?
For a EUR 10,000-50,000 grant: absolutely. The hourly return on your application time is extremely high if approved. Even a EUR 10,000 Startup Scheck at forty hours of preparation works out to EUR 250 per hour of effort.
For smaller amounts or very early-stage ideas where you are not sure about feasibility: the Startup Scheck’s simplified application is specifically designed for this scenario.
Beyond the money, the application process has a valuable side effect: it forces you to articulate your project clearly, define your market, plan your approach, and think about commercialization. This clarity benefits your business regardless of the funding outcome.
Takeaways
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Check your eligibility with the FFG’s free advisory service before investing in an application. A thirty-minute call can save you weeks of misdirected effort.
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Start with the Startup Scheck if you are early-stage. Simplified application, up to EUR 10,000, and fast processing. It is designed for startups exactly like yours.
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Frame your project as research, not just product development. FFG funds the answering of questions and the generation of knowledge, not just the building of products. Adjust your framing accordingly.
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Apply while you still have runway. Three to five months from application to first payment is typical. Plan funding needs ahead, not reactively.
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Do not give up after a rejection. FFG feedback is specific and constructive. Use it to improve and reapply. Many successful projects were funded on the second attempt.
