3rd Call for Proposals: Challenge Fund (Albania)

The Challenge Fund is the grant scheme of the project EU4Innovation, Phase II, 2023-2026 in support of innovative start-ups. The objective of the Challenge Fund is to boost a vibrant innovation ecosystem in Albania, by offering an opportunity for access to finance to Albanian start-ups through an open, transparent, and competitive application process.

The Challenge Fund provides applicants with a grant to overcome the uncertainties that inhibit innovation, research, and development. The assumption is that without challenge-fund support, such activities are either unlikely to happen, or will occur at a later stage, with reduced developmental effects.

The fund is managed by The Swedish International Development Cooperation Agency (Sida) and implemented by Partners Albania for Change and Development.

Priorities

• Challenge Fund will give priority to the sectors with considerable importance to the current Albanian economy and/or in which Albanian economy is considered to have comparative advantage in a regional, EU or global contexts, such as tourism and its related industries; agriculture and Agri-related industries, green economy including climate smart innovations and energy, not excluding ICT which is regarded as enabling (cross-cutting) technology for various sectors.

Funding Information

• The grant amount:
  • The grant amount Under this Call for Proposals, the three subcategories of start-ups are eligible for a grant from the Challenge Fund of the following amounts:
    • Lot 1: Idea and Validation stage start-ups – maximum 10 000 EUR [a founder or a team in the early stages of developing an innovative business idea (not registered entity in QKB)]
    • Lot 2: Growth stage start-ups – maximum 20 000 EUR [an active registered business entity within the first 12 months of registration from the official registration date at the QKB to the date of publishing of this Call for Proposals]
    • Lot 3: Scale-up stage start-ups – maximum 30 000 EUR [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]
  • The total grant amount from the Challenge Fund must not exceed:
    • Lot 1: Idea and Validation stage start-ups – 95% of the total budget
    • Lot 2: Growth stage start-ups – 80% of the total budget
    • Lot 3: Scale-up stage start-ups – 70% of the total budget
• Cost-sharing:
  • An important element in any challenge fund instrument is the cost-sharing aspect. The Challenge Fund grant is given on a cost-share basis, i.e. the applicant is expected to co-share the costs. For any start-up funds are scarce and that is why the co-shared amount may be in cash or in-kind contributions. Salaries should be proposed only as in cash contributions. Fix assets and equipment should be proposed only as in-kind contributions. In case of Fix Assets, the Net book value should be equal or higher than the amount of co-shared and will be justified with proper documentation as relevant.
  • The applicant must provide a co-financing share of the total value of the proposed budget, in the respective %:
    • Lot 1: Idea and Validation stage start-ups – 5% of the total budget
    • Lot 2: Growth stage start-ups – 20% of the total budget
    • Lot 3: Scale-up stage start-ups – 30% of the total budget

Eligibility Criteria 

• The Challenge Fund is open to Albanian start-ups created around an innovative business concept, registered or to be registered and operating in Albania.
• A start-up within any sector is eligible to apply. There are no limits in terms of sector or business focus apart from those normal in donor support such as alcoholic beverages, tobacco, weapons, etc.
• All applicants must meet the following eligibility criteria to be eligible for a grant under the Challenge Fund:
  • be a legal person (business entity – MSME) already registered and operating in Albania (applicable only for Lots 2 & 3);
  • 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;
  • have 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;
  • has no tax payment obligations to national and local authorities (applicable only for Lot 2 & 3);
  • is not prosecuted by the Prosecution;
  • is not convicted for a penal case with a final decision of the Court;
  • is directly responsible for the preparation and implementation of the activities outlined in the application

For more information, visit Challenge Fund – EU4Innovation.