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 early-stage entrepreneurship competition held at the beginning of the year. Participants can register with or without a business idea. The format allows anyone to sign up for the Masterclass — an intensive weekend where the focus is on teaching participants how to create a pitch deck, a short presentation that effectively communicates their idea. Following the Masterclass, participants compete for the best pitch. Here you can read more about Gulleggið.
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? Here you can read more about Fræ grant. Fræ.
Accelerator
KLAK runs 3–4 business accelerators each year, each with a different focus. Did you take part in Gulleggið? Maybe you’ve already received a Seed Grant? If you have a strong team and are ready to take the next step, then a business accelerator is the way to go. At the core of our accelerators are mentorship programs where we connect startups with experienced entrepreneurs and industry experts from the business world. Take a closer look at our accelerators and see which one fits your journey. here.
Sproti
The Sproti grant can amount to up to ISK 20 million over two years. It is designed for early-stage startups and entrepreneurs working on innovative projects in their initial phases. Learn more about the Sproti grant and how it can support your journey. here.
Dafna
Dafna is a workshop series for recipients of grants from the Technology Development Fund. This is where the real work begins! The workshops take place two days per month over a four-month period. Following the workshops, each grant recipient is matched with a hand-picked team of mentors who provide support over the next six months Read more about Dafna and how it helps bring ideas to life. here.
Funding
There are various ways for startups to finance their projects. Read more about funding opportunities further down the page.
Accelerator 2.0
Companies further along in their startup journey can benefit from participating in accelerators outside of Iceland. KLAK helps introduce and connect companies to global accelerators like TINC in Silicon Valley. You can read more about TINC here.
Vöxtur
Vöxtur grant can amount to up to 50 million ISK over two years and is intended to support development projects that have moved beyond the initial idea stage. Read more about Vöxtur grant here.
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.
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