How Founding A Startup In Luxembourg Works

Don’t miss the infographic on How To Start A Startup In Luxembourg!

Luxembourg success across history is interesting at many levels, the country has been able to adapt itself to the world around in a very agile fashion, from an industry focused on steel, the country evolved into a very strong financial place (the 2nd biggest fund manager after New York), since a couple of years a new transformation begins. The country is focusing on innovation, at all levels, from scientific research, modernized universities, and indeed a growing up startup community. If you are interested in BioTech, social entrepreneurship, drones, robotics or IT, you should consider Luxembourg.

GPS Direction: Luxembourg

Advantages Of Starting A Startup In Luxembourg:

• Luxembourg is located in the between Germany, France, and Belgium. Many European institutions are based in Luxembourg (European Investment Bank, European Commission) but also many big players have their European Headquarter there (Amazon, AOL, Apple iTunes, eBay, PayPal, Skype, Microsoft, Sony, etc..)
• Thanks to its central location above mentioned, it is extremely easy to travel to other major startup hubs in Europe, such as Paris, London or Berlin, which are all within one hour’s flying time from Luxembourg. Luxembourg is a small country in terms of population and size of the territory, a startup can very quickly become a national leader. Startups can also quite easily get access to economic and business decision-makers.
• Luxembourg is also very cosmopolite (more than 45% of the resident are foreigners) so your startup in Luxembourg will have an international outlook from day one. In that sense, Luxembourg can also be an interesting test-market for startups willing to get diversified feedbacks from people representing a lot of different cultures.
• The GDP per capita in Luxembourg is the second highest GDP in the world, after Qatar and Liechtenstein. It allows Luxembourg to offer cutting-edge infrastructures, notably regarding IT and network connectivity, which are essential points for many digital startups (SaaS, broadcasting, gaming, etc).
• The startup community is very active and friendly. We can mention Startup Grind Luxembourg or Silicon DrinkAbout Luxembourg, which gather the startup community on a regular basis to enjoy drinks and talk about creating and developing a startup in Luxembourg.
• In 2016, the simplified limited liability company (S.à.r.l.-S) was introduced allowing entrepreneurs to create a company with only a minimum share capital of 1€ and with no notarial act required. The objective of the Simplified S.à.r.l. Is to provide a simplified access to independence in Luxembourg.

What Startup Founders Have To Consider:

• Starting a business in Luxembourg requires the obtention of a “business permit” which can be an administrative burden and/or a loss of time in some cases. However, the Chamber of Commerce/House of Entrepreneurship is used to dealing with this kind of demands, notably from foreign people.
• Real estate in Luxembourg is expensive. It can be useful to check renting opportunities outside of Luxembourg city.
• More generally, salaries are high and getting skilled people to work for your startup will probably cost you more than in other countries. Nevertheless, if your innovative startup is complying with the corresponding law, public subsidies can be available. Luxinnovation is the partner in Luxembourg helping you to assess your eligibility to the different subsidy schemes. Furthermore, the attractive tax environment in Luxembourg is an asset.
• Even if Luxembourg is a dynamic country with a vibrant capital offering many bars, restaurants, and concerts, the city is not as fast-paced as London or Berlin are.
• Don’t forget that Luxembourg remains a small market, whatever its qualities are. Setting up a startup in Luxembourg implies an ability to rapidly expand in other countries in order to get traction and grow.

First Stop: Discover Luxembourg’s Startup Community

Luxembourg’s startup community is young and growing! Establishing new connections is incredibly easy by attending different kinds of meetups. There are literally dozens of startup events every month.

Stay Tuned For Upcoming Events, Meetups & Other Occasions:

• Luxinnovation is eager to support you in developing your innovative tech startup in Luxembourg. Whether it is business plan evaluation, accelerator programs or access to national funding schemes, Luxinnovation will provide you with the right tools to become successful in the Grand Duchy. In addition, different kinds of events are organized on a regular basis. They can be found here.
• Silicon Luxembourg is your key to startup events in Luxembourg. Here you’ll find all the events related to the startup ecosystem. See their upcoming events here.
• Startup Grind is a global startup community designed to educate, inspire, and connect entrepreneurs. On their website, you can find upcoming events. During those, local founders, innovators, educators, and investors share personal stories and lessons learned on the road to building great companies.
• WIDE’s mission is to encourage more and more women to seize opportunities in the digital economy.
• LIST contributes to the socio-economic development of Luxembourg by focusing on materials, environment and IT.
• SnT/Uni.lu conducts international research in the field of ICT with the objective of developing the socio-economic environment in Luxembourg.
• Girls in Tech is a global organization focused on the engagement, education, and empowerment of influential women in technology.
• Silicon DrinkAbout is a weekly casual meetup where people come and share experiences in a very nice atmosphere.

Yearly Or Major Events, Contests, Conferences:

• Fit 4 Start – A 16 weeks accelerator program for your startup, providing coaching, free access to a co-working space as well as a public grant. Fit 4 Start takes place 2 times a year.
• ICT SPRING – The best place to discover new startups or to pitch yours. Easy access to a wide range of decision-makers, investors, etc.
• PitchYourStartUp – An awesome occasion to pitch your startup, create awareness and win amazing prices.
• StartupWeekend – Do we need to introduce startup weekend? This is probably the most popular and global startup event in the world. The Luxembourg chapter is very cosmopolite with people from all around Europe, the perfect place to meet your co-founder.
• Mind & Market – Regularly hosting different events with the overall objective of bringing together people that can create a winning team.
• Global GameJam – This worldwide hackathon got a chapter here in Luxembourg. The event is happening in a very good environment, with a lot of fun and interesting results.
• BBQ GameJam – Yearly event, 48 hours to build a video game and enjoy a nice barbecue.

Second Stop: Park Your Startup At A Coworking Space

Coworking and offices spaces are blooming in Luxembourg. Some are supported by strong initiatives from the private sector and the government, others are really driven by communities of individuals, you can find a very modern industrial place around the city or more cozy spaces downtown. Whatever type of entrepreneur you are, Luxembourg offers the right coworking space for you.

Coworking & Office Spaces In Luxembourg:

• Technoport – Whether in Foetz or Belval, you’ll find a vast, modern co-working space with an industrial style.
• LHoFT – Coworking space for companies dedicated to financial technology.
• Nyuko – A community and place where people come together to build their business or work on projects that matter.
• WishBox – Offers you a creative and friendly working space.
• The Office – Designed to give startups, entrepreneurs & freelancers a functional place to connect, share ideas and collaborate.
• Silversquare – On the 2nd of May 2018, Silversquare will open its doors only 2 minutes from the central station in Luxembourg City. It offers a fruitful environment to advance your business by sharing ideas and working with others.
• 1535°C – 16.000m² spread across 3 industrial buildings including 400m² dedicated to the coworking of creatives.
• Tlpo Community – The Telecom Luxembourg ICT Campus provides unique coworking spaces that connect tech startups, global brands, and entrepreneurs through innovative accelerator programs all hosted at the Luxembourg Campus.
• Greenlab – Right after the border of Belgium, the Greenlab in Arlon is an about to be an open coworking space.
• Collaborate – A FinTech & IT Business Center located in the heart of Luxembourg City. The ideal place to nest your startup and to cluster with other innovative companies. From 10 to 50 sqm offices. Park & Play (Hotdesk) availability offered in a beautiful Maison de Maître.
• Maison Breedewee – In the heart of Luxembourg, an innovative workspace was created for new and existing businesses.

Third Stop: Tank Your Finances

Finding investors in Luxembourg can be achieved in many different ways. You can simply ask around since the country is not very big, there is a good chance you are connected to the right person already. In case you are new in town, attend local meetups like Silicon DrinkAbout and talk about your project (this is how I find startups I invest in).

Otherwise, you’ll have many occasions to pitch in front of a panel of investors, from the yearly ICT Spring event to many smaller events. “Going out of the building” is the key here.

Incubators:

• Technoport – The technology-oriented business incubator has it as a goal to promote and support the creation and development of innovative and technology-oriented companies in Luxembourg. Technoport provides either individual entrepreneurs or foreign innovative businesses with access to resources that they typically lack in terms of business support services and infrastructure.
• LHoFT – The incubator is a public-private initiative that emphasizes on technology innovation for the financial services industry in Luxembourg. In Q2 of 2018, the LHoFT will move to the House of Start-Up.
• House of Start-Up – The HoST will bundle the Luxembourg-City Incubator (LCI), the House of Financial Technology (LHoFT) as wall as Nyuko. The HoST will open its doors in Q2 of 2018.
• Paul Wurth Incub – Offers a broad range of services to entrepreneurs active in the field of industrial technologies.
• Lux Future Lab – In the heart of Luxembourg, Lux Future Lab is a physical space to support the development of skills and entrepreneurial projects in an interactive and dynamic environment.
• Innovation Hub Dudelange – Over 500m2 of renovated space dedicated to the support of innovative startups in the field of EcoTechnolgy.
• Neobuild – The cluster for technological innovation in sustainable construction. The areas of expertise are firstly articulated around the high environmental and energy performance of buildings.
• The GreenHouse – Provides a special and unique environment for early-stage innovation startups. The team at The GreenHouse is composed of seasoned entrepreneurs and investors who have a particular passion to help companies grow to the next level.
• House of BioHealth – A unique hosting facility with office and lab spaces, for both established and startup companies in the field of BioTech, CleanTech, and ICT.
• 6zero1 – Are you an entrepreneur that wants to create social impact? 6zero1 supports you in the launch and development of your social startup.
• UNI.lu Incubator – The University of Luxembourg’s first incubator for current students and alumni. It is an initiative both of the University and Cisco.

Accelerators:

• Founder Institute Luxembourg: A Silicon Valley-based pre-seed accelerator focusing on founders, with chapters across 180+ cities and Graduates that have built companies exceeding $20B in estimated value.
• Nyuko offers an accelerator program divided into 3 phases and adapted to the needs of the respective customers (early-stage, commercial launch, internationalization).
• EYnovation provides a range of services aiming to support startups and other companies in their growth goals.
• Grant Thornton offers a broad range of support solutions and functions as a one-stop service provider for startups.
• Tomorrow Street delivers tools to facilitated high growth to mature startups. TS has close partnerships with both Vodafone and Technoport.
• The KHUBE, hosted by KPMG, is an initiative that helps entrepreneurs to run, fund and grow their businesses.

Other Business Support:

• HoE – The House of Entrepreneurship is a free of charge initiative from the Chamber of Commerce designed to be the one stop shop in a variety of matters that companies can have.
• InnoHub is a soft landing platform for startups that want to develop their business by introducing their products to international markets.

Grants & Subventions:

• Help and subventions offered by the government – This section provides comprehensive information on the different forms of bank and non-bank financing available for your business, accounting and financial management and the main types of government aid available.
• Support from Luxinnovation – Luxinnovation will support you during the whole process of applying for different types of state aid.

Angel Investors:

• LBAN is a network of business angels that emphasizes both on the exchange between investors as well as bringing together angels and entrepreneurs.

Venture Capital Investors:

• Mangrove Capital – Bold but patient investment firm helping innovative entrepreneurs start and grow global.
• Chameleon Invest is driving sustainable economic growth by actively supporting passionate entrepreneurs and creating synergies in a dynamic ecosystem.
• European Investment Fund supports Europe’s small and medium-sized businesses by helping them to access finance.
• Genii Capital is an investment management and financial advisory firm.
• LPEA is a member-based, non-profit trade association.
• Luxembourg Future Fund is a fund that aims to stimulate the Luxembourgish economy. It invests indirectly through venture capital funds.
• Expon Capital – Venture Capital company focusing on technology companies.
• Digital Tech Fund was announced in 2015 and targets local startups younger than 7 years and featuring innovative products.

Other Investment Opportunities:

• Seed4Start is the biggest annual forum for capital risk of the Grand Region. Companies will have access to a high number of investors and vice versa.

Coaching & Networking:

• 123 go – If accepted to the program, 123 go will help you to create an outstanding business plan and gives you the opportunity to establish a valuable business network.
• Impuls Accelerator for companies having a social, environmental or solitary focus. Includes coaching, networking, and access to a coworking space.

Fourth Stop: Seek Further Advice

So, you are convinced and excited to settle your business in Luxembourg? If you are reading this part, I assume it’s a YES.

The very first week, you should attend the weekly meetup Silicon DrinkAbout this is the best place to connect to the local startup scene, newcomers are welcome. Share your idea with people there, meet your co-founders, mentors etc…

Now, you are part of the local community, the next step is to build your project, explore your value proposition and establish a plan, people at Luxinnovation will be happy to help (bonus pdf guide).

Take a deep breath, it’s time to file your company in the country, this is where you’ll find all the details about it. All done?
Congratulations, that was easy right? Now the real journey begins!

Tips: 80% of the revenue from a patent, drawing… are deductible of taxes.

 

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Special thanks for the contribution to this guide to Thibaut Ciccone, Stefan Berend & Valentin Rongoni

Last updated: March 21st, 2018

The guides are like startup communities – they constantly change and grow.
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