There are many paths to starting a business. We have mapped one out to highlight the strength of Iceland’s innovation support ecosystem. By following the startup journey, entrepreneurs can easily identify and access the appropriate grants and resources available at each stage of development.
The start-up process
Hackathon
Hackathons are idea competitions for entrepreneurs who intend to solve presented problems. The best solution wins the competition, and often wins a prize that benefits the implementation of the idea. Participating in a hackathon is a great way to get practical ideas for entrepreneurship.
Idea
Do you already have an idea? Great – move on to the next step. Looking to come up with an idea? Most ideas are focused solutions to common problems. To spark new ideas, try observing the world with a critical eye and ask yourself: What could be improved?
Gulleggið
Gulleggið is an entrepreneurial competition at the idea stage and is held at the beginning of the year. You can register for Gulleggið with or without an idea. The arrangement is such that everyone can register for the Masterclass, which is a dynamic weekend where the emphasis is on participants learning how to make a "pitch deck" or a short slide presentation that makes the idea clear. Afterwards, there is a competition for the best presentation.
Fræ
Fræ (seed) is a grant with the aim of supporting ideas and projects at an early stage which can lead to larger development projects. In order to apply for Fræ, you have to submit a 10 slide pitch deck presentation explaining the idea - coincidence?
Accelerator
KLAK runs 3-4 business accelerators annually with different emphases. Did you participate in Gulleggin and have you even received a Seed grant? Do you have a good team and are you ready to take the next step? Then the business accelerator is the thing. The core of our accelerators are the mentoring programs, where we connect entrepreneurs with experienced entrepreneurs and experts from the business world.
Sproti
Sproti can amount to up to 20 million ISK over two years and is intended for young innovative companies and entrepreneurs who are working on an early-stage project.
Dafna
Dafna are workshops for those who have received a Startup Grant from the Icelandic Technology Development Fund. This is where the real work begins! The workshops take place two days a month, for four months at a time, and following them, all grantees receive a specially selected team of mentors who will follow them for the next six months.
Funding
There are various ways for startups to finance their projects. Read more about funding opportunities further down the page.
Accelerator 2.0
Accelerators for more advanced companies are often good to seek outside the country, and KLAK participates in promoting and finding companies for international accelerators such as TINC in Silicon Valley.
Vöxtur
Growth can amount to up to 50 million ISK in two years and is intended to support development projects that have progressed from the early stages of ideas.
Funding environment
Bootstrap
Bootstrap is startup lingo for when entrepreneurs use their own capital to get their idea going.
FFF
FFF stands for Family, Friends and Fools, but some entrepreneurs use money from friends and family who believe in the idea to get started.
Grants
Various grants are available for both research and development of innovative projects, but also for the implementation of innovative solutions. An overview of grants can be found at Skapa.is
VC funds
VC funds are investment funds intended for investments in start-up companies. An overview of the main investment funds for Icelandic startups can be found at Skapa.is
Angels
Angels are investors who use their own capital to invest in early stage startups. Angels often have entrepreneurial experience themselves and can provide appropriate assistance.
Loan
There are funds that offer loans for innovative projects. It is also possible to take out loans from banks for specific company purchases, such as real estate or equipment financing.
Crowdfunding
Crowdfunding is when the public funds a project, often with voluntary donations in exchange for receiving a product/service when it is ready.
Business accelerators
An accelerator is a multi-week program designed to help entrepreneurs develop their ideas and become investment-ready. KLAK’s accelerators typically conclude with Investor Days, where entrepreneurs pitch their projects to investors.