From start-up to scale: Luxembourg invests in the future of innovation

Luxembourg is stepping up its strategy to become Europe's leading centre of innovation with a 10-point action plan that reinforces the course set out in the From Seed to Scale initiative. The new package of measures covers the entire life cycle of start-ups - from idea to international markets - and offers concrete support to both young companies and growing scaleup players.

Lex Delles, Minister for the Economy, SMEs, Energy and Tourism, emphasises that the goal is clear: "We want to provide startups and scaleup companies with real support at all stages of development, making the ecosystem even more attractive to international talent and investors".

State investment bank SNCI will provide an additional €300 million over five years to finance companies in strategic sectors - cybersecurity, deeptech, sustainable technology, healthtech, space and fintech. This will complement the €280 million already invested through Luxembourg Future Fund 1 and 2.

For the first time, Luxembourg will introduce a tax credit for individuals investing in young innovative start-ups registered in the country. The move is aimed at activating private capital.

From May 2025, a separate programme will be launched to support spin-off companies - up to 80% public co-financing (maximum €200,000), provided that at least 20% will be provided by private funds. In parallel, industry incubators will appear in the areas of healthtech, space and automotive technology.

Based on a one-year pilot by Luxinnovation, a full-fledged programme to support scaleup companies will be launched by the end of 2025. The government will also analyse how best to expand the channels for attracting venture capital.

The package includes tax incentives for employee stock options to make working in start-ups more attractive. And a national Talent Desk, organised by the Ministry of Economy together with the Chamber of Commerce and Industry and the Chamber of Crafts, will be set up to attract international staff.

One of the flagship elements of the plan will be the development of an AI Experience Centre within the LHoFT (Luxembourg House of Financial Technologies). The centre will serve as a point of attraction for fintech companies and investors. In addition, the country will launch one of seven pan-European AI Factories, where artificial intelligence will be applied to priority industries.

To strengthen connections between startups and investors, the plan includes support for the flagship event Luxembourg Venture Days, the next edition of which will take place on 22-23 October 2025. Cross-industry meetups will also be organised, bringing together fintech with space, healthcare, automotive and digital technologies.