Belgian Grants and Investor Due Diligence — What VCs Check

If you have received Belgian grants and you are raising venture capital, your grant history will be examined during due diligence. This is not a red flag — it is standard practice. VCs want to understand your company's financial history, obligations, and any conditions attached to the money you have received.

Belgian grants are considered state aid under EU rules. This means they come with specific disclosure requirements and conditions that investors need to understand. The good news: Belgian grants are generally investor-friendly. They are non-dilutive, they do not create debt, and they signal that your company has been vetted and validated by public agencies.

The challenge is presenting your grant history clearly and proactively. VCs who are not familiar with the Belgian system may have questions about repayment conditions, restrictions on use, and what happens to active grants after a funding round. This guide covers exactly what to prepare.

Most Belgian SME grants fall under the EU's de minimis regulation, which caps the total state aid a company can receive at €300,000 over a rolling three-year period (this threshold was increased from €200,000 in 2024). This is the first thing investors will check regarding your grants.

During due diligence, you will need to provide a complete list of all state aid received in the current and two preceding fiscal years. This includes grants from VLAIO, Innoviris, SPW, federal programs, and any other public funding. The de minimis declaration is a standard document that Belgian grant agencies require you to sign when applying — so you should already have records.

Investors are not worried about the de minimis cap itself — €300,000 is a modest amount in the context of a VC round. What they want to confirm is that your company has been tracking its state aid correctly and has not inadvertently exceeded the threshold, which could trigger repayment obligations.

A common concern during fundraising is whether receiving VC investment changes your eligibility for current or future grants. The short answer: generally no, but there are nuances.

Belgian regional grants from VLAIO, Innoviris, and SPW are typically available to SMEs as defined by EU rules. The EU SME definition considers ownership: if a VC fund holds more than 25% of your company, you may need to include the fund's data in your SME assessment. However, venture capital funds and business angels have a specific exemption under the EU SME definition — they are not counted as linked enterprises even if they hold more than 25%, provided they are not controlling shareholders.

The practical implication: taking VC investment usually does not disqualify you from Belgian SME grants, as long as no single investor (or group of linked investors) gains control. Your grant advisor or accountant should verify your SME status after each funding round. This is a standard check, not an unusual burden.

For grants that are already active when you raise a round, the conditions typically do not change. The grant agreement's obligations (reporting, project completion, employment requirements) remain in force regardless of your shareholder structure.

The best approach is proactive disclosure. Include a clear summary of all grants received in your data room, covering: the granting agency, the amount, the program name, the project it funded, any outstanding obligations (reporting deadlines, employment commitments), and whether the grant is fully disbursed or partially outstanding.

Frame your grants as validation, not dependency. Belgian VCs are very familiar with the grant ecosystem — in fact, many expect portfolio companies to be using it. A company that has successfully obtained VLAIO or Innoviris grants has demonstrated the ability to write compelling project proposals, meet government scrutiny, and execute on funded projects.

Avoid two common mistakes: first, do not hide grants or downplay them. VCs will find them during due diligence, and non-disclosure creates trust issues. Second, do not present grants as a substitute for revenue or commercial traction. Grants fund R&D and growth activities — they should complement, not replace, your commercial story.

Use the BelGrant grants catalogue to maintain an overview of what you have applied for and received. The AI assistant can help you identify which programs are most relevant to highlight during investor conversations.

Belgian VCs and institutional investors have deep familiarity with the local grant ecosystem. They typically check the following during due diligence: de minimis compliance and accurate state aid tracking, whether active grants have been properly executed (milestones met, reports submitted), whether any grants have repayment clauses that could be triggered by a change of ownership, and whether the company's SME status is maintained post-investment.

Some Belgian grants include a clause requiring notification or approval if the company undergoes a significant ownership change. This is rare in standard VLAIO or Innoviris programs but can appear in larger R&D project grants. Check your grant agreements carefully and flag any such clauses to your legal counsel before entering due diligence.

Belgian VCs also look at grant history as a quality signal. A company that has been consistently awarded competitive grants has effectively passed a form of external validation — the grant agency reviewed your project, your team, and your financials, and decided you were worth funding. This carries weight with experienced investors.

Before entering due diligence, prepare the following: a complete list of all grants received and applied for, including amounts and dates. Copies of all grant agreements and any amendments. A de minimis declaration showing total state aid received in the current and two preceding fiscal years. Status of each active grant — milestones completed, reports submitted, obligations outstanding.

Also prepare a brief note on SME status, confirming that the company will retain its SME qualification after the planned investment round. If you have used a grant consultant, include their contact details as a reference.

Check your grant agreements at our scaleup grants guide for detailed information about how Belgian grants work at the growth stage. If you need help navigating the intersection of grants and fundraising, the BelGrant assistant can help you prepare your documentation.