Stable Funding Pathways for Innovative Businesses

Innovative businesses seeking capital to develop their ideas face structural barriers in today's funding landscape. Institutional investors avoid unproven projects. Venture capital firms may lack technical expertise to evaluate deep-tech. Government subsidies require extensive documentation. And funding rounds consume months of management attention that could be spent building the business.

We help companies navigate these funding challenges based on extensive experience across different financing mechanisms and investor types. Whether you are raising your first seed round, structuring a government subsidy application, or optimising your tax position to fund R&D, we provide the legal and strategic support to make the process efficient and predictable.

The Belgian Funding Landscape

Belgium offers a uniquely favourable combination of public and private funding mechanisms for innovative businesses. VLAIO subsidies provide direct co-financing of R&D activities at rates up to 45% for SMEs. The R&D withholding tax exemption allows companies to reclaim up to 80% of the withholding tax on qualifying R&D staff salaries. The innovation income deduction provides an 85% deduction on qualifying IP income. The copyright tax regime offers a favourable 15% flat rate on copyright royalties for qualifying creative professionals. And VVPRbis provisions offer reduced withholding tax on dividends for qualifying new share capital.

The challenge is not the availability of funding mechanisms but their complexity. Each mechanism has its own eligibility criteria, documentation requirements, and compliance obligations. Combining them requires coordination to avoid double-counting, to satisfy substance requirements, and to maintain defensible positions when tax authorities review the arrangements. We provide the integrated legal and tax advisory that makes the combination work.

Private Funding: Seed to Series A

For companies seeking private investment, the legal work begins well before the term sheet. IP ownership must be clean and documented. Corporate structure must be investor-friendly. Employment agreements must contain adequate IP assignment and non-compete provisions. The company's regulatory position (particularly for AI, data protection, and regulated sectors) must be defensible under due diligence scrutiny.

We prepare companies for fundraising by addressing these structural prerequisites, then support the negotiation and documentation of the investment transaction itself: term sheet review, shareholder agreement drafting and negotiation, articles of association amendments, and closing documentation. Our focus on IP-intensive businesses means we understand what investors in this space look for and where the common deal-breaking issues arise.

Frequently Asked Questions

What funding sources do you help companies access?

We assist with private equity, venture capital, angel investors, institutional funds, government subsidies (VLAIO, EU programmes), and tax optimisation schemes such as the R&D withholding tax exemption, the innovation income deduction, and the copyright tax regime. We also advise on IP-backed debt financing and convertible instruments.

What stage companies do you work with?

We work with companies from seed stage through Series A and beyond, with particular focus on technology-driven businesses seeking EUR 500K to EUR 10M. Our experience spans hardware, software, IP-intensive businesses, and regulated sectors including AI, medtech, and fintech.

How long does it take to prepare for a funding round?

IP and corporate structure preparation typically takes 3 to 6 months before the fundraising process begins. Companies that start preparation early avoid the delays and value erosion that occur when structural issues are discovered during investor due diligence. We recommend engaging us before the first investor meeting, not after the term sheet arrives.

Can you combine multiple Belgian R&D incentives?

Yes, and this is one of our core competencies. The R&D withholding tax exemption, the innovation income deduction, VLAIO subsidies, and the copyright tax regime can be combined, but each has its own eligibility criteria and documentation requirements. We model the optimal combination for each client's specific situation, ensuring compliance while maximising the total benefit.