“The Czech economy needs new impetus for growth, and one of these is a growing startup ecosystem, which is having an increasing impact on GDP and employment. Thanks to the Technology Incubation program run by our agency, the state is sending a clear signal that it supports the development of innovative companies and their market presence. However, in order to fully exploit this potential, we must also improve the business environment and create legislative conditions in which startups can emerge and grow, thus contributing to the modernization of the Czech economy,” says Jan Michal, CEO of CzechInvest.
By participating in the incubation program, young Czech companies will gain access to a wide range of financial and non-financial support tools that will enable them to accelerate their development and market entry. “Each startup is now assigned an incubation manager who will accompany the team throughout the entire period of mutual cooperation. Subsequently, it will be possible to start drawing on the so-called incubation package, which, in addition to direct support in the form of finances, also offers specific tailor-made services such as workshops, consultations with experts, or connections to key players in the startup ecosystem in the given area. At the same time, they will join a community of more than 454 founders who have already successfully completed incubation or are currently going through the process,” explains Tereza Kubicová, Deputy Director for Technological Development at CzechInvest.
Startups applied to one of the technology areas, which include artificial intelligence, mobility, creative industries, ecology and the circular economy, preservation and protection of life or increasing its comfort (including medicine, biotechnology, and security solutions), and advanced materials. The AI Hub (12), Tech4Life Hub (8), and Creative Hub (8) will receive the most newcomers. Companies working in the SPACE field are incubated in accordance with the ESA BIC Czech Republic space program and its separate calls.
During the preparatory phase of the fifth call, known as pre-incubation, 228 projects expressed interest and more than 150 of them subsequently submitted an application. Independent experts from various sectors across the public, private, and academic spheres then recommended supporting 27 projects in the STANDARD scheme and another 13 in the PLUS scheme based on innovation, scalability, feasibility, and fulfillment of formalities. In the first case, startups will receive direct support of up to CZK 1.1 million, while in the second case, support will reach up to CZK 4.5 million. Indirect support for both schemes amounts to half a million.
A total of 157 startups from the sixth call, which closed in April this year, are now also undergoing evaluation. This call is dominated by applications from the creative industries, artificial intelligence, and subsequently Tech4Life. “We are successfully approaching our goal of supporting 250 startups. In July, we are reaching our capacity peak and incubating 162 companies simultaneously. In this final call, we will therefore offer incubation to just under 30 innovators. We are therefore actively negotiating with the Ministry of Industry and Trade to build on the successful operation of the incubator so that we can bring further opportunities for development and growth to entrepreneurs across the Czech Republic,” adds Kubicová.
Technology incubation is the largest initiative to support startups in the Czech Republic, with a total allocation of approximately CZK 680 million. The project is financed from the state budget through the Ministry of Industry and Trade as part of The Country for the Future program.
