There are many ways to start a business, and we have highlighted the powerful supportive environment for innovation in Iceland. By following the start-up process, entrepreneurs can apply for appropriate funding and access support at each development stage.
The start-up process
Hackathon
Hackathons are idea competitions for entrepreneurs who intend to solve presented problems. The best solution wins the solution 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 have an idea? Great – move on to the next step. Want an idea? Most ideas are concise solutions to common problems, so to get an idea it's good to look at the world with critical eyes and think what can be done better.
Gulleggið
Gulleggið is an entrepreneurial competition held at the beginning of the year for those at the concept stage. Participants can register with or without an idea. The event includes a Masterclass, a dynamic weekend focused on creating a pitch deck, a short slide presentation to effectively communicate the idea. Following the Masterclass, there is a competition to determine the best presentation. 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 10 slide presentation explaining the idea - coincidence? Here you can read more about Fræ grant. Seeds.
Accelerator
KLAK annually runs 3-4 business accelerators with different focuses. Did you participate in Gulleggið and have you maybe even received a Seed grant? Do you have a good team and are you ready to take the next step? Then participation in a business accelerator is the answer for you. The core of our accelerators are the mentoring programs, where we connect participants with experienced entrepreneurs and experts from the business world. Take a closer look at our accelerators here.
Sproti
Sproti grant can amount to up to 20 million ISK over two years and is intended for young innovative companies and entrepreneurs who are working on a project at an early stage. Find out about the Sproti grant here.
Dafna
Dafna are workshops for those who have received a Start-up grant from the Technology Development Fund. This is where the real work begins! The workshops are a week long and are held twice a year, and following them, all beneficiaries receive an ideal mentor who will accompany them for the next six months. Read more about Dafna here.
Funding
There are various ways for startups to finance their projects.
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 entrepreneurial lingo for when entrepreneurs use their own capital to get their idea off the ground.
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
The various grants are available for both development and research 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
Business accelerators are programs of several weeks for entrepreneurs to develop their ideas and become investable. KLAK's business accelerators usually end with investor days, where entrepreneurs present their projects to investors.
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