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Regional funding calls for prototypes, scale-ups and equity

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Regional funding calls for prototypes, scale-ups and equity

Regional funding calls can bridge the gap between the laboratory and the market. This article explains how to combine regional funding calls with venture capital, European programs and national measures to finance prototypes and scale-ups. The analysis lines up deadlines, requirements and practical constraints. Here we show operational choices to decide whether to aim for a demonstrator, product-market fit or an equity round, and we define term sheets, cap table, product-market fit and milestones to use funds in a coordinated way. Defining term sheets and cap table is essential.

Regional funding calls can bridge the gap between the laboratory and the market.

When regional funding calls accelerate the demonstrator

Regione Emilia-Romagna has allocated €3,000,000 for projects that bring scientific results to operational demonstrators. It offers non-repayable grants up to €300,000 per project. The call requires collaboration agreements with universities or research institutions for an amount not less than €40,000. The minimum project size is €200,000. At least 50% of eligible costs must be allocated to technology transfer. Applications can be submitted from 24 September 2026. The deadline is 30 October 2026. Project completion must occur by July 2028.

For a team originating from an academic spin-off, the call is designed for advanced experimental development. The clause on scientific collaboration mandates defining licenses and managing intellectual property. The time constraint until July 2028 imposes clear milestones and quarterly deliverables. Delays make costs not completed by the deadline ineligible.

Defining “milestone” is important. A milestone is a measurable intermediate objective. It can be validation in operational conditions or the production of a working prototype. Milestones are used to track the use of funds and to justify expenditures. At the application stage it is advisable to map the cost items that the call covers. These items must be separated from those to be financed with private capital or loans. This distinction prevents double funding and helps negotiate agreements with partners and investors. Mapping cost items prevents double funding.

Using regional equity and co-investments for growth

Regione Liguria, through Ligurcapital, makes €10,000,000 available to take equity in Ligurian startups and SMEs. The intervention concerns minority stakes. The measure has two lines. Line A is for companies in the start-up phase. It provides investments between €100,000 and €500,000. Amounts can rise to €1,000,000 for innovative companies in special areas. Line B is for other SMEs. It provides investments between €100,000 and €300,000. Every operation requires a private co-investor. The co-investor must participate for at least 40% and not more than 60% of the investment. Applications open on 22 September 2026. The offline procedure starts on 15 September.

Resorting to this type of equity is useful when seeking liquidity to commercialize a product. It allows maintaining operational control while accepting a financial partner. It is necessary to prepare a term sheet, the document that sets the main terms of an investment. It is also necessary to prepare a cap table, the table that shows the distribution of shares and ownership after the operation.

A founder must assess the impact of a minority investment on governance. They must also evaluate exit plans. Before the application it is necessary to update the cap table. A draft term sheet should be prepared specifying pre-money valuation, governance rights and anti-dilution clauses. The co-investment constraint forces finding a lead investor or a group of business angels. These parties must be ready to invest in parallel. Updating the cap table before the application is mandatory.

Integrating European and national programs while respecting constraints

EIT Culture & Creativity makes a total of €8,600,000 available to accelerate startups and scale-ups in the cultural and creative sectors. It can support up to 50 companies. The Shape Acceleration Programme offers up to €100,000 and additional options for the best projects. The Scale Post-Acceleration Programme offers up to €200,000. It can rise to €500,000 for companies in the EIT Regional Innovation Scheme countries. The call deadline is 12 October 2026. The cohort starts in January 2027. For the Scale program capital raising activity is required or having obtained at least €200,000 of investments in the previous 18 months.

At the national level, the Scoperta imprenditoriale II measure of the Ministry of Enterprises and Made in Italy provides over €505 million for research and development projects in the South. The incentives combine a subsidized loan covering 40% with a reduced rate at 80% and a duration of up to 8 years. The incentives also offer non-repayable grants up to 40% for small enterprises. Pre-filling of applications begins on 24 September 2026. The portal opens on 7 October 2026.

Combining EIT and Scoperta requires attention to the prohibition on double funding. The same expenses cannot be declared to both programs. The recommended practice is to create a map of eligible expenses for each instrument. It is advisable to associate invoices and cash flows with each source. Clauses must be foreseen to protect intellectual property, especially when working with research institutions.

Combining instruments requires expense maps and protection of intellectual property.

The same expenses cannot be declared to two programs.

Practical decisions for founders who want to scale today

At first contact with these instruments, defining product-market fit is fundamental. Product-market fit means that the product meets a real demand. Such demand is demonstrated through pilot customers or initial revenues. If you already have paying customers or pilots, participating in EIT Shape or in an investment by Ligurcapital becomes credible.

If instead the need is an operational demonstrator to attract investors, regional funding calls like the one from Regione Emilia-Romagna can finance the validation phase up to the prototype. Plan in three columns. First column: costs you will request from regional funding calls. Second column: costs you will assign to equity investments. Third column: project expenses to be covered with European or national programs. Update the cap table. Prepare a clear term sheet. Establish quarterly milestones tied to fundable deliverables.

Key dates are 15 and 22 September 2026, 24 September 2026, 30 October 2026, 12 October 2026 and the portal opening on 7 October 2026. Respecting these dates determines whether the prototype enters the market or stays in the laboratory. Establishing quarterly milestones improves execution.

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