Startup insights: New whitepaper publication by EIT Manufacturing East

Startups are essential for developing new and innovative business models in an ever-changing world. To assess the current potential and challenges that startups are facing in the manufacturing industry, Markus Kleinfercher, Senior Project Manager at EIT Manufacturing East, provided an overview of Austria’s startup ecosystem and specific hardware startup success factors in his recent whitepaper publication.

Austria has been offering great opportunities to its startups in recent years. There is a multitude of support structures, such as incubators, accelerators, and funding programmes, which they can take advantage of. Furthermore, Austria’s location enables startups to easily access both Western and Eastern European markets.

However, Austrian startups are typically limited by the small local market size and the gaps in late-stage funding, particularly for hardware startups. Additionally, the capital requirements of hardware startups are generally quite high, which necessitates full-scale production to turn profitable. In order to address these issues, the whitepaper identified key success factors for hardware startups to thrive. These range from the rapid development of prototypes while ensuring a plausible proof of concept (PoC) to safeguarding proper IP (intellectual property) protection.

Overall, the whitepaper provides recommendations on how to prosper in the competitive landscape. First of all, securing diverse funding sources and implementing strong financial planning are crucial to overcoming the capital-intensive nature of hardware development. A skilled team and strong leadership foster that development. Secondly, forming strategic partnerships with manufacturers, research institutions, and industry experts can accelerate innovation and streamline production. Lastly, leveraging government grants, incubator programmes, and regulatory support can create a more favourable environment for long-term success.

If you are interested in learning more about the whitepaper, you can access it here (in German): Link