8 tips on applying for estonian and EU startup company grants

Raimo Matvere • Nov 10, 2025 • 8 min read

According to three Enterprise Estonia grant experts, success depends on preparation, clear business logic, understanding your finances, and a meaningful connection to Estonia’s innovation ecosystem

Eero Liivandi, Kristen Kannik, and Mart Toots of Enterprise Estonia — Eero Liivandi (left), Kristen Kannik (middle), and Mart Toots (right) of Enterprise Estonia

A wide range of startup company grants are available for entrepreneurs with Estonian companies, from national innovation support to EU funding programmes.

For e-residents, these opportunities make Estonia not only a place to register a company but a strong base for international expansion. When the specific eligibility criteria are met, Estonian companies founded by e-⁠residents can apply for both local and EU grants on the same terms as businesses based in Estonia.

Previously, we wrote an article about grants and support options available to companies registered in Estonia, including e-⁠resident companies. In this article, we look more closely at the key factors in becoming a successful grant candidate and how to prepare yourself for the entire application process.

In Estonia, the main organisation managing startup company grants is Enterprise Estonia. It offers its own support schemes and curates applications for several EU funds. The content of this article is based on insight from experts who regularly consult businesses and evaluate grant applications at Enterprise Estonia:

Eero Liivandi, Head of Customer Service and Management
Kristen Kannik, Key Account Manager
Mart Toots, Head of the Applied Research Department

Build a strong foundation before applying
Clearly define your market and value
Focus on measurable results and milestones
Use pre-consultations to understand what evaluators value
Understand the evaluation and reporting process
Ensure financial readiness
Explore EU and international opportunities
Think beyond startup company grants
Key takeaway

1. Build a strong foundation before applying

Before applying for funding, make sure your company is eligible. The business must be registered in Estonia, financially sound, and demonstrate genuine activity.

A key factor in grant applications – and often a deciding one – is having a proven and meaningful business connection to Estonia. This means that your company’s activities, investments, or partnerships contribute in some way to the local economy or innovation ecosystem. It’s not enough to simply have a legal address in Estonia; evaluators want to see substance and engagement.

Examples of meaningful business connections include:

Employees based in Estonia
Having a written agreement or memorandum of understanding (MoU) proving collaboration with private companies, Estonian universities, or research institutions on product development
Using Estonian suppliers (sourced raw materials or secondary materials like waste), production facilities, or digital infrastructure
Holding core business assets (like intellectual property or software development) under an Estonian company
Contributing to Estonia’s exports by selling products or services internationally through the Estonian company

In other words, your Estonian company should not be a passive registration. It should actively participate in business or innovation processes linked to the country. This connection strengthens your eligibility for support and signals a long-term commitment to Estonia’s economy.

“It’s not just about having a company in Estonia – it’s about having a real business connection that contributes to the Estonian economy.”

Mart Toots, Head of the Applied Research Department at Enterprise Estonia

2. Clearly define your market and value

One of the most common weaknesses in applications is a vague market definition. Evaluators expect to see a well-defined customer base, realistic growth plans, and clear evidence of demand. Avoid general statements like “the global market is huge” and instead name specific markets, distribution channels, and measurable goals.

Strong applications explain what the company does, who it serves, and what tangible benefits its innovation brings. It’s an advantage when an applicant can refer to activities that have already been carried out as part of desk research or preparatory work. For example, when entering a new business segment or export market, the project materials should include research findings such as potential and attainable market size, main competitors, competitive advantages, and results from any customer surveys conducted.

3. Focus on measurable results and milestones

Startup company grants are awarded for projects that can demonstrate progress. Applications should include specific, measurable milestones that clearly show what success looks like. For example, “launching a tested prototype by Q3” or “entering two new export markets within 12 months.”

Concise, structured applications with realistic metrics often stand out more than lengthy, generic ones.

4. Use pre-consultations to understand what evaluators value

Before submitting a grant application, companies are strongly encouraged to book a pre-consultation with Enterprise Estonia or the grant-providing institution. These sessions help founders clarify whether their idea fits the programme and ensure the proposal meets formal requirements. They also provide valuable insights into what evaluators actually look for.

When applying for a startup company grant, it’s important that no binding agreements have been signed before submitting the application, as these activities will not be considered eligible. Preliminary consultations or non-binding proposals from third parties are acceptable, but formal contracts or accepted offers are not. The same principle applies to hiring new staff support must demonstrate a clear incentive effect, meaning the project activities begin only after funding approval.

Grant evaluators assess more than just innovation – they look for a balance between vision and realism. Applications are reviewed by both financial and industry experts, often experienced entrepreneurs or investors themselves. They assess whether the project’s financial structure is sustainable, the team is capable of delivering results, and the company demonstrates genuine business potential.

“The strongest applications don’t promise everything – they show they know exactly what they can achieve and how.”

Mart Toots, Head of the Applied Research Department at Enterprise Estonia

Evaluators want to see that the founder understands their business model and market. That means presenting clear revenue logic, realistic sales expectations, and credible cost estimates rather than overly optimistic projections. They value companies that can show how the grant will accelerate their growth, not sustain basic operations.

While smaller Enterprise Estonia startup company grants can often be applied for independently, larger innovation or EU-level grants are worth approaching with professional support. Founders new to public funding or planning to apply for international programmes may benefit from professional grant-writing assistance. These experts can help refine the application narrative, prepare documentation in line with EU requirements, and strengthen the technical and financial parts of the proposal.

In short, applications that combine innovation, feasibility, and measurable market potential stand out the most.

How to access funding and grants for startups in Estonia

Explore Estonia’s grants for startups. E-residents can access funding and EU opportunities to grow their businesses.

5. Understand the evaluation and reporting process

Once submitted, each application goes through multiple evaluation stages. First, the evaluating team conducts a formal compliance check, ensuring the documents and financials meet eligibility requirements. Then, independent experts – typically from relevant industries and business sectors – assess the proposal based on several main criteria:

Innovation and technological readiness – how new or unique the product, service, or process is
Business potential and scalability – whether there is a real market and a plan for growth beyond the project period
Team capability and experience – whether the team has the necessary skills and background to deliver
Financial viability – whether the company’s current financial situation supports project implementation

Evaluators pay close attention to the applicant’s financial health. The company’s share capital must be positive, tax obligations fulfilled, and the cash flow stable enough to support co-financing requirements. Businesses that rely entirely on the grant to stay afloat are seen as high-risk. A balanced budget, where grant funding complements but doesn’t replace private investment or revenue, is considered a sign of maturity.

Once the grant application is submitted, applicants may receive additional questions to clarify the data provided. In ongoing application processes, it’s common for evaluators to request supplementary documents or provide feedback if certain details need further explanation.

Professional project writers can also play a useful role here, helping to prepare clear, compliant financial documentation and ensure that budgets align with project goals – a frequent weak spot for many applications.

After approval, projects are monitored through progress and financial reports, typically every six months. Larger grants may include advance payments of up to 30%, but funding is released in stages based on verified milestones. If challenges arise, transparent communication with the grant institution is encouraged – flexibility is possible when problems are reported early.

6. Ensure financial readiness

Startup company grants are not meant to cover all of a project’s costs. As the applicant, you’re expected to co-finance around 30-55% of the costs. Your business should have sufficient cash flow or investment to cover this portion. Overly optimistic financial projections can weaken an otherwise strong application.

Co-financing can also be covered by projected cash flow and future earnings, but the application must include a clear and well-founded explanation of how these funds will be generated and used during the project period.

A sustainable funding plan that balances grant support with business income shows maturity and reliability.

7. Explore EU and international opportunities

Estonian companies, including those founded by e-residents, can access major EU programmes such as Horizon Europe, Eurostars, and the EIC Accelerator. These support cross-border research and development (R&D) and innovation partnerships and often include funding for product development and market expansion.

EIC Accelerator supports the development of a technology- and knowledge-intensive solution to market readiness up to €2.5 million grant. It co-invests an additional €0.5-€10 million in the company's equity to launch it on the market.

Eurostars, for example, funds R&D collaborations between small and medium-sized companies across Europe and beyond. Estonian firms are eligible for up to €300,000.

Preparation and patience are key. The process from application to approval can take from a couple of months to up to a year, but the benefits include access to networks, expertise, and global credibility.

8. Think beyond startup company grants

In addition to direct funding, Enterprise Estonia offers various business development and export support programmes. These include grants for involving international innovation and market expansion experts, joining international events, mentoring networks, and startup initiatives.

“Grants shouldn’t shape your business idea – your business idea should shape which grants you apply for.”

Eero Liivandi, Head of Customer Service and Management

The full list of opportunities is available on the Enterprise Estonia website. These resources can help refine strategies, improve competitiveness, and prepare companies for larger funding rounds later.

8 grant application tips

1
Build a strong foundation before applying
2
Clearly define your market and value
3
Focus on measurable results and milestones
4
Use pre-consultations to understand what evaluators value
5
Understand the evaluation and reporting process
6
Ensure financial readiness
7
Explore EU and international opportunities
8
Think beyond startup company grants

Key takeaway

Applying for startup company grants in Estonia is an opportunity not just to secure funding, but to refine your company’s vision and strategy. Through the e-Residency programme, founders from anywhere in the world can establish an Estonian company. Once eligible, you can apply for the same local and EU grants available to Estonian businesses.

The most successful founders approach funding as part of their growth strategy. They think long-term, measure real impact, and actively engage with Estonia’s trusted digital and innovation community.

Apply for e-⁠Residency

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Table of Contents

1. Build a strong foundation before applying

2. Clearly define your market and value

3. Focus on measurable results and milestones

4. Use pre-consultations to understand what evaluators value

5. Understand the evaluation and reporting process

6. Ensure financial readiness

7. Explore EU and international opportunities

8. Think beyond startup company grants

8 grant application tips

1

Build a strong foundation before applying

2

Clearly define your market and value

3

Focus on measurable results and milestones

4

Use pre-consultations to understand what evaluators value

5

Understand the evaluation and reporting process

6

Ensure financial readiness

7

Explore EU and international opportunities

8

Think beyond startup company grants

Key takeaway

Apply for e-⁠Residency

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Table of Contents

1. Build a strong foundation before applying

3. Focus on measurable results and milestones

4. Use pre-consultations to understand what evaluators value

5. Understand the evaluation and reporting process

7. Explore EU and international opportunities

Apply for e-⁠Residency

8 grant application tips

1

Build a strong foundation before applying

2

Clearly define your market and value

3

Focus on measurable results and milestones

4

Use pre-consultations to understand what evaluators value

5

Understand the evaluation and reporting process

6

Ensure financial readiness

7

Explore EU and international opportunities

8

Think beyond startup company grants