Early-stage startup development Program is designed to support highly promising teams aiming to validate their business ideas by empirically confirming their proposed problem-solution fit, and demonstrating the future usefulness of their new product, service, process or technology through development of a first prototype or a minimum viable product (MVP).

Program beneficiaries will receive grant financing and mentorship services that will help them execute the first phase of in-depth market research, begin product development, establish their business model concept and initiate preparation for the next phase of fundraising and development.

During the course of the Program, beneficiaries are ideally expected to complete the following deliverables:

• Validate the problem-solution fit by pairing their business idea with a confirmed market need in a realistic market environment,
• Demonstrate their product’s fundamental technical viability (through a prototype, MVP or pilot), and
• Create an effective early business model.
• Completing these deliverables should provide the beneficiaries with knowledge and insights which would enable them to polish and verify their product-market fit in the next stage.

ELIGIBLE APPLICANTS

Eligible applicants for this program are:

• Teams comprised of 2 to 5 members

or

• Privately owned micro companies (in the form of limited liability company), incorporated in Montenegro for no longer than two (2) years at the time of Application submission.

In cases where the application is submitted by a team, if financing is approved, the applicants will be required to establish a company in accordance with the Montenegrin Company Law. The newly established company must be 100% owned by the proposed team member(s).

AMOUNT OF FUNDING

The grant financing provided by the Fund is limited to a maximum of EUR 30,000 per project and the Fund’s financing can cover a maximum of 90% of total project budget (excluding the cost of mentorship services). The minimum of 10% of the total project budget (again, excluding the cost of mentorship services) is to be secured by the beneficiary from any private source as a cash contribution. No in-kind co-financing will be accepted.

Furthermore, every beneficiary will receive up to EUR 5,000 additional funds that are to be allocated for covering the cost of mentorship support services.

ELIGIBLE COSTS

The following cost categories are considered eligible for financing:

• Human resources (salaries/compensation for personnel engaged on the project; can be inclusive of all social benefits and income tax for personnel working on the project). For existing startups, before signing the Grant Agreement, it will be necessary to attach the last 3 pay slips preceding the month in which the project application is made and a contract proposal (unsigned) for each new person who will be employed on the project.
• Office rent and basic business support costs (bookkeeping, legal services, etc.)
• Equipment and supplies for development (cannot be used or refurbished equipment and supplies)
• External business development or R&D services
• Value Added Tax (VAT) only if the entity cannot claim a VAT refund for any reason.

PROGRAM DURATION

Beneficiaries are required to finish the implementation of their project activities within a  6 months. In case of significant pivoting from the original idea or unforeseen events which could be considered force majeure by the Fund, the implementation can be extended for a maximum period of up to 3 months as a no-cost extension.

PROJECT APPLICATION CONTENTS

The complete application documentation consists of the following two documents:

• Signed Applicant statement;
• Application form which has to be filled out and submitted in PDF format.

APPLICATION DEADLINE

Applications for the Public Call are submitted through the Fund’s portal https://programifonda.me  from May 29, 2024 and no later than July 8, 2024 (by the end of the day).

CONTACT

E-mail:startap@fondzainovacije.me

Phone: 020 653 891