AGVO, funding rate, De-Minimis, spin-off: anyone dealing with grants quickly encounters specialised terminology. This glossary explains the most important concepts.
In a Nutshell
- The most important funding terms explained in plain language
- From AGVO to SME to grant
- A handy reference for funding applications
Anyone dealing with grants in Austria quickly encounters a variety of specialised terms: AGVO, funding rate, De-Minimis, spin-off, and more. Understanding these concepts is essential for submitting successful funding applications. This glossary explains the key terms clearly and accessibly.
An EU regulation that permits certain subsidies without requiring prior approval by the EU Commission. Startups benefit through faster and simpler programme administration.
The value of a future payment at today's date, calculated using a discount factor. Grants typically have a present value of 100%, as they are immediately available and non-repayable.
A state-backed security arrangement, often through aws, where a third party assumes the repayment obligation if the company defaults. This enables access to credit even without collateral.
Repayable credit, often at favourable interest rates through funding institutions. Key factors to monitor: loan duration, repayment terms, interest rates, and associated fees.
An EU rule permitting smaller state subsidies of up to 300,000 euros within three years without formal notification. Many startup grants operate under this framework.
The prohibited practice of funding identical costs through multiple programmes. However, different cost categories or project phases may be combined.
Costs for external services such as consulting, development, or research. Special documentation requirements typically apply.
The percentage of project costs covered by the funding. With a funding rate of 40%, the remaining 60% must be covered through equity or revenue.
Indirect costs that cannot be directly attributed to specific projects (e.g. rent, administration, IT). Many programmes allow standard overhead deductions, typically around 20%.
Legal responsibility for the fulfilment of contracts, loan repayments, or guarantee obligations. Founders should carefully clarify liability risks.
The official EU classification that determines funding eligibility:
Affiliated companies may affect the classification.
A new enterprise emerging from a research institution or an existing company. University spin-offs often enjoy particularly favourable funding conditions.
A financing arrangement where investors provide capital without operational influence. This enables access to capital without diluting company shares.
Companies that are economically or legally interconnected. These relationships can alter the SME classification and, consequently, funding eligibility.
Non-repayable financial support for projects. Ideal for early-stage startups: no repayment required, no equity surrender.
The funding landscape is complex, but a solid understanding of the fundamentals provides a strategic advantage. This glossary prepares entrepreneurs for successful applications, effective communication with funding agencies, and choosing the right financing strategy.
Robert Kopka
StartMatch Founder & CEO
The first months of founding a company are often the hardest. These three early-phase funding programmes provide money, advice, and hands-on support in 2026.
The FFG Kleinprojekt funding offers startups and SMEs in 2026 a low-barrier entry into research funding - fast, flexible, and open to all topics.
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