Innovation Challenge Fund (Albania)

The aim of the Challenge Fund is to improve and diversify finance opportunities for Albanian start-ups and MSMEs, with innovative solutions (e.g., products, services, business models, pro-cesses) and start-ups with a prominent tec content with innovative solutions (e.g., products, services, business models, pro-cesses) and start-ups with a prominent tech content.

The Challenge Fund also comprises the design and delivery of a Capacity Building Program with the aim to increase capacities of awarded Albanian MSMEs / start-ups to initiate and/or strengthen their business initiatives that foster inclusive development in the form of an integration between training, mentoring, and coaching, and study visits to enterprises.

What is Innovation in the context of the Challenge Fund?

• Everything that adds value to your business
• Makes it more efficient
• Reduces cost and time
• Is something new, it can be a new process, a new marketing approach, a new product / service
• Responds to existing challenges in your business
• A solution that works well in the local context where your business operates

Priority Sectors

• Tourism and its related industries;
• Agriculture and agro-related industries;
• Green economy including climate smart innovations and energy;
• ICT as enabling (cross-cutting) technology for various sectors.

What are they looking forward?

• The proposal must be innovative
• The proposal should be Feasible and Sustainable
• The proposal should have Social Impact

What do they offer?

• Not just funds.
• Capacity building program consisting in the delivery of a training program in doing business successfully and ensure business sustainability.
• Capacity building on the management of the sub-granting scheme.
• Mentoring support, according to the specific needs of your business, throughout the period of implementation;
• Workshops to provide opportunity for start-ups/ISOs from EU4Innovation Phase I and Challenge Fund 2023-2026 to exchange experience, share good practices and to build future partnerships.
• Promotion of the awarded start-ups in the local and international market through the production and online publication of photos and videos.

Who can apply to the Challenge Fund?

• Lot 1: Idea and Validation stage start-ups – a founder or a team in the early stages of developing an innovative business idea (not registered entity in QKB) Up to: 10,000 €
• Lot 2: Growth stage start-ups – an active registered business entity within the first 12 months of registration from the official registration date at the QKB to the date of publication of this Call for Proposals. Up to: 20,000 €
• Lot 3: Scale-up stage start-ups – an active registered business entity within the first 13 months and 6 years of registration from the official registration date of the business entity at the QKB to the date of publishing of this Call for Proposals. Up to: 30,000 €

Rules for Funding

• The Applicant must be a legal person (business entity – MSME) already registered and operating in Albania (applicable only for Lots 2 & 3);
• The Applicant must ensure that the start-up will be registered as a business entity – MSME and operate in Albania (applicable only for Lot 1);
• Albanian diaspora, and non-Albanian applicants would be also eligible to apply as along as the business is assured to take place in Albania.
• The Applicant has not been registered in QKB for more than 6 years from the date of publication of this Call for Proposals;
• The operating status of the business is ACTIVE at the moment of application for this Call for Proposals;
• The applicant must provide the co-financing share of the total value of the proposed budget, in the respective %, as follows:
  • Lot 1: Idea and Validation stage, 5% co-financing
  • Lot 2: Growth stage, 20% co-financing
  • Lot 3: Scale-up stage, 30% co-financing
• The applicant has no tax payment obligations to national and local authorities (applicable only for Lot 2 & 3);
• Is not prosecuted by the Prosecution;
• Does not have any penal cases in process in Court;
• Is not convicted for a penal case with a final decision of the Court;
• Period of implementation will be from 6 to 12 months.

For more information, visit Swedish International Development Cooperation Agency (Sida).