Not only is Graz an amazing place to visit for sightseeing, but it also has a strong academic core, with eight universities in the city, and housing a large student population. The large number of universities means that the city is a hub of knowledge, and fosters entrepreneurialism and innovation. As reported by City of Graz, more than 1,400 new companies are founded in Graz every year. In 2020, it recorded a total of 1,500 startups formed that year, an increase of 15.1% compared to the previous year, marking a record for the city.

Graz is one of the most innovative business locations in Europe, with an R&D rate of 5%. The city has defined and focused industry sectors in the fields of mobility, biotech, life sciences, energytech, greentech, and microelectronics, as well as having a big emphasis on the creative industries.

Startup support

Due to the encouragement of R&D in the area, and wanting to foster entrepreneurial spirit, The Economic Department of the City of Graz acts as an independent partner for startups, helping them navigate the everyday and complex challenges.

As well as providing direct financial support, the Department supplies figures, data, and information, among plenty of other support services, to help support the creation and upkeep of startups in the area. It also supports Graz business initiatives and organisations, and serves as a point of entry for small businesses into the larger ecosystem. The aim is to provide direct and targeted support for the businesses in the city to leverage knowledge and resources.

The Entrepreneurship Center Network is a network in Graz that consists of Austrian universities that promotes and supports entrepreneurial thinking and action. The network is committed to cross-university networking, and there are currently 31 universities in the network.

There are plenty of Graz-based support networks out there, especially when you start looking into specific sectors…

Greentech and the Greentech valley

A big focus of the Economic Department of the City of Graz is an effort to grow the number of impact startups and initiatives in the city.

In 2020, the Economic Department of Graz and the City of Graz Climate Protection Fund launched the Green Tech Summer Graz programme. The programme partners with Green Tech Valley Cluster, Styrian Business Promotion Agency, Science Park Graz, and Gründungsgarage; all to offer financial and mentorship opportunities to encourage the next generation of greentech leaders. The programme aims to make students a key force in climate change action and fosters an environment for students to pursue entrepreneurial ventures within the sustainability space.

Over a three-month summer programme, the initiative offers an experience for students with climate-focused business ideas.

Participants spend time immersed in workshops and coaching sessions with expert guidance, which covers a range of topics, from business model development and marketing to intellectual property strategy and pitching techniques. To ensure these concepts and businesses succeed, the city supports startups’ transition to market through follow-up funding via the Climate Business 100 programme.

Graz is also the home of Green Tech Valley. The Green Tech Valley Cluster was founded in 2005 with an 11 person team. They had a vision of: '1 World. 0 Carbon. 0 Waste.' It now supports its 300 partners with industry know-how and services.

The aim of the Cluster is to strengthen the position of companies and research institutions in southern Austria, and to allow for the expansion of their technology and market leadership in the field of energy and environmental technology internationally. The Cluster works with companies of all sizes, but we will focus on its benefits to startups.

The Valley’s startup ecosystem is continuously growing, with over 120 greentech startups already located in southern Austria. According to Green Tech Valley, most of the green startups in the region operate in the areas of energy (23%), food and agriculture (22%), and the circular economy (19%).

The Green Tech Valley Cluster supports innovators with a range of events and services. It connects greentech founders with investors and large corporations to drive the growth of their solutions, and to make the startups more visible in the ecosystem, with appearances at industry-relevant events and trade fairs.

The Cluster also helps support startups financially. With a €6 million funding injection, there is a big drive in making Upper Styria the 'Green Startupmark', and making the area Austria’s home for green startups.

The JTF Green Startupmark project aims to bring local players together to form a strong startup ecosystem by 2028. This is predicted to not only expand the range of support available but improve the cooperation between entrepreneurs and companies in the area, as well as between research institutions and other network partners.

The project is based on five pillars:

1. The Green Incubator: a meeting space for those interested in founding a Greentech startup on the campus of the University of Leoben
2. Startup combo: this gives students and researchers the opportunity to receive financial support for their green business idea. When developing the idea, they receive support from Green KAIT (Kapfenberger Accelerator and Incubator for Green IT) and ZAT Leoben
3. Green incubees: these are founders in the pre-startup phase. These innovators are given support in the development, optimisation, and implementation of their business model, and are helped to network with suitable experts and mentors
4. Consulting support: this subsidised consulting is available to select startups
5. Green startup support: Greentech startups, founders, and ‘incubees’ in all phases of their development are supported by project partners, with support from Green Tech Valley, Green KAIT, and ZAT)

With the beautiful city to explore, and plenty of support out there, it might be time to consider Graz as your headquarters if you’re a greentech startup, or even any kind of startup!

This article originally appeared in the January/February 2025 issue of Startups Magazine. Click here to subscribe