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You are here: Home / cat / Driving Innovation: Kosovo Invests €1 Million in Promising Startups and SMEs

Driving Innovation: Kosovo Invests €1 Million in Promising Startups and SMEs

Dated: December 24, 2025

The Luxembourg Development Cooperation has announced a new call for proposals under the LuxAid Demonstration Fund (LDF), building on the success of its first edition in 2025. The initiative aims to accelerate the growth and impact of innovative digital and green solutions by well-established businesses in Kosovo, offering selected projects co-financing of up to EUR 350,000. Interested companies can submit applications by 6 February 2026.

The fund targets innovations addressing major societal challenges in Kosovo, with a focus on fostering a competitive private sector that contributes to sustainable growth and prosperity. In the digital sector, the call prioritizes companies developing tools in AI, data analytics, automation, fintech, e-commerce, cybersecurity, export-ready ICT services, skills-to-jobs initiatives, and HealthTech solutions, particularly in cardiovascular care. In the green sector, the focus is on energy efficiency, clean energy transition, circular economy models, sustainable agribusiness, circular agri-processing, and climate adaptation solutions for water and resource management.

The LuxAid Demonstration Fund specifically supports mature companies that are formally registered in Kosovo before 1 November 2022, employ at least five people, and have a turnover below EUR 50 million. Eligible businesses must have tested their innovative product or service on the market with at least one year of proven revenue and societal impact, and propose a one- to two-year business project built around their innovation. Companies are expected to co-finance at least 50% of project costs.

The application process will involve coaching for ten shortlisted candidates to strengthen proposals and prepare for pitching. Selected businesses will present their projects to a committee in June 2026, with final decisions on three to four projects expected by July 2026. An information webinar is scheduled for 14 January 2026, with two onsite Q&A sessions planned on 21 and 28 January.

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