Subsidies for Scale-ups in Flanders

Belgian grant programs increasingly distinguish between startups and scale-ups, and this distinction directly affects which programs you can access. A startup is typically defined as a company in its early stages, developing its initial product or service. A scale-up is a company that has validated its business model and is focused on rapid growth.

For grant purposes, scale-ups generally have: proven revenue, a growing team, established market presence, and capital needs driven by expansion rather than initial development. Many startup-focused programs explicitly exclude companies above certain revenue or headcount thresholds.

Conversely, scale-up-specific programs like the KMO-groeisubsidie target companies at exactly this growth stage. Understanding which category your company falls into is the first step toward finding the right funding. BelGrant’s AI assistant can help you determine your grant eligibility based on your company’s stage.

The KMO-groeisubsidie is Flanders’ flagship subsidy for growing SMEs. It provides up to €50,000 in support for hiring strategic profiles or engaging external expertise to support a specific growth trajectory.

The subsidy covers two types of costs: strategic employee recruitment (salary costs for a new strategic hire over the first 12 months) and strategic advisory services (external consultants for growth strategy, internationalisation, digital transformation, or similar).

What makes this subsidy distinctive is its focus on transformation. You must demonstrate that your company is at a turning point — entering a new market, fundamentally changing your business model, or scaling operations significantly. Routine business development does not qualify.

Applications are evaluated on three criteria: the strategic nature of the growth trajectory, the quality and relevance of the advisory or hire, and the expected impact on the company’s competitiveness. Approval rates are competitive, so a strong application narrative is essential.

VLAIO offers investment subsidies that can support scale-ups expanding their operations in Flanders. These subsidies cover capital investments in equipment, machinery, and infrastructure needed for scaling production or service delivery.

The strategic transformation subsidy (Strategische Transformatiesteun) is particularly relevant for larger scale-ups undertaking significant operational transformations. It can cover up to 20 to 30 percent of eligible investment costs for projects that transform the company’s competitive position.

For scale-ups in innovation-intensive sectors, VLAIO O&O subsidies (Research and Development subsidies) fund the development costs of new products, processes, or services. These can cover personnel costs, equipment, materials, and subcontracting for R&D activities.

The key to accessing VLAIO investment support is demonstrating that the investment represents a strategic leap, not just incremental capacity expansion. Evaluators look for projects that fundamentally strengthen the company’s market position.

PMV (Participatiemaatschappij Vlaanderen) is the Flemish government’s investment company, offering co-financing solutions for scale-ups that complement grant funding. PMV provides subordinated loans, equity investments, and guarantees that can fill the gap between grants and total capital needs.

For scale-ups, PMV’s Growth Capital fund offers equity co-investments alongside private investors. This is particularly valuable for companies raising Series A or B rounds, as PMV participation can signal quality to other investors and reduce overall dilution.

PMV also operates the win-winlening scheme, which encourages private individuals to lend to growing companies with a tax advantage. This can be an effective way for scale-ups to raise supplementary funding at favourable terms.

The combination of VLAIO grants for specific projects and PMV financing for overall growth capital creates a comprehensive support package for Flemish scale-ups.

The European Innovation Council (EIC) Accelerator is the EU’s flagship program for innovative companies with high growth potential. It offers up to €2.5 million in grant funding plus up to €15 million in equity investment — making it one of the largest funding opportunities available to Belgian scale-ups.

The EIC Accelerator targets companies with breakthrough innovations that have the potential to create or disrupt markets. Applications are evaluated at European level, with competition from across the EU, but Belgian companies have historically performed well.

The application process is multi-stage: a short application, a full application, and an in-person interview in Brussels. The process is demanding but the potential payoff is significant for scale-ups with genuine European-level innovation.

VLAIO and Innoviris both offer support for companies preparing EIC Accelerator applications, including coaching and pre-application feedback. Combining regional support with EU-level ambition is a proven strategy for Belgian scale-ups.