7 million euros to support small and medium-sized enterprises in Vienna
In an economic move aimed at supporting small and medium-sized enterprises and enhancing their ability to grow, the city of Vienna, in cooperation with Raiffeisen-Holding Niederösterreich-Wien, announced the launch of a new financing tool based on providing direct capital to companies, according to details of the new economic initiative reported by the Austrian Press Agency (APA) .
This project is based on the establishment of a new company called “Wachstum Wien GmbH”, through which a funding fund with a total value of 7 million euros will be managed, jointly financed by the Vienna Agency for Economic Affairs and Raiffeisen-Holding, with 3.5 million euros for each party, with the emphasis that the city’s contribution does not come from the general budget but from resources allocated within the Agency for Economic Affairs.
This initiative focuses primarily on supporting small and medium-sized enterprises (SMEs) in the growth phase, especially in vital sectors such as digital technology and healthcare, where these companies typically face difficulties in obtaining sufficient capital to expand their businesses or invest in product development and human resources.
Vienna Mayor Michael Ludwig explained that the aim of this program is to bridge the funding gap suffered by this category of companies, noting that the new tool does not target large companies or individual projects, but focuses exclusively on companies that have clear growth potential and need direct financial support.
The new company is scheduled to begin its actual operations in the fall of 2026, with applications for funding opening during the same year, while the first actual funding operations are expected to begin from 2027, giving companies time to prepare and submit their applications according to the conditions that will be announced later.
The funding will be provided in the form of equity contributions ranging from €100,000 to €500,000 per company in each funding round, in exchange for the funding entity receiving an equity stake in the beneficiary company, thus allowing it to benefit from future profits. The financial model is also designed so that the returns are reinvested in funding new projects, ensuring the fund's sustainability without requiring further capital injections from the city in the future.
The plan focuses on allocating at least 75 percent of the total funding to companies active in the health and technology sectors, particularly in sectors such as life sciences, medical technologies and pharmaceutical industries, which are among the most important areas of innovation in Vienna and provide about 49,000 jobs, in addition to their major role in the city's exports.
This initiative reflects a strategic direction to support innovation and enhance the business environment in Vienna, especially in light of global economic challenges, as the city seeks to provide modern financing tools that contribute to stimulating growth and creating high-quality job opportunities.