Is Austria a Good Place to Launch a Startup?

Where you start your company still matters – but sticking too closely to one location might limit what you’re able to build. In today’s startup landscape, geography shapes your path – but it doesn’t have to define your potential.

Austria has emerged as a strong hub for entrepreneurship, offering access to funding, talent, and infrastructure. But with growing competition, rigid local programmes, and support often reserved for the most polished startups, relying solely on what’s nearby can slow you down – or hold you back.

In this article, we’ll explore what Austria gets right – and where founders often run into friction. We’ll also show how EWOR offers an alternative: a global, remote-first platform that gives you access to funding, mentorship, and community – no matter where you’re based.

1. Access to Funding in Austria

Funding is one of the most critical ingredients in building a successful startup – and Austria offers a growing ecosystem of support. From venture capital firms to government grants and angel investors, founders in this region have several pathways to raise capital and gain early traction.

Austria's early-stage funding scene is active, supported by various players. Notable VC firms include Speedinvest, aws Gründerfonds, and APEX Ventures, with others like Calm/Storm Ventures focusing on specific sectors like digital health. Government bodies like Austria Wirtschaftsservice (aws) and the Austrian Research Promotion Agency (FFG) offer crucial grants and support programs like AWS Seed Financing and FFG Start-up Funding. Angel networks such as the Austrian Angel Investors Association (AAIA) also connect founders with private investors. Despite this support, challenges persist, including a perceived gap in growth-stage funding (Series B and beyond) compared to earlier rounds. While early-stage funding saw stability or slight growth from 2020-2021, there was a downward trend from 2022-2024 in early-stage finance startups according to one report. Additionally, a risk-averse investment culture and administrative complexity can pose hurdles for startups.

A More Flexible Path Forward

In the wake of these challenges, founders don’t have to rely solely on local funding options. EWOR offers a more flexible path – providing up to €500,000 in early-stage capital But EWOR is more than a cheque. Our capital comes bundled with personalised support, investor-ready storytelling, and access to a network of over 400 active European investors – many of whom regularly participate in our Grand Pitch events. On average, EWOR fellows who complete the programme and pitch go on to raise €2 million in follow-on funding – over 10x more than founders from comparable European initiatives.

2. Innovation and Startup Culture  

Austria has become a centre of innovation, with numerous tech hubs, coworking spaces, and accelerators that foster creativity and new ideas. The local startup culture is vibrant, with a growing community of entrepreneurs working together to push the boundaries of what’s possible.

Austria has a dynamic and growing startup ecosystem, particularly centered in Vienna. Entrepreneurial activity is significant, with thousands of startups founded since 2012. The country ranks well in Europe for venture capital investment and has produced several unicorns. Coworking spaces are prevalent, especially in Vienna, providing flexible workspaces and networking opportunities for founders and freelancers. Austria also hosts numerous tech and startup events, such as ViennaUP and the 4GAMECHANGERS Festival, fostering connections within the community. The ecosystem actively supports early-stage founders through various programs and institutions like Austria Wirtschaftsservice (aws) and the Austrian Research Promotion Agency (FFG). These offer financial aid, coaching, mentoring, and access to networks, indicating a focus on nurturing startups from the pre-seed phase through a mix of standardised programs and personalised guidance.

For many entrepreneurs, the energy and resources available in Austria can provide the ideal environment to test new ideas and gain early traction. The collaborative atmosphere allows founders to connect with fellow innovators and build networks that can help their startups grow.

While the local startup culture is vibrant, the support founders actually receive can be hit or miss. VCs might offer funding but little time. Angel investors often give advice, but it’s scattered and inconsistent. What’s more, many accelerators rely on a one-size-fits-all model that doesn’t reflect the needs of exceptional founders. In fast-moving, competitive ecosystems like Austria, standing out is hard enough – getting the right kind of support shouldn’t be.

The Alternative to Cookie-Cutter Programmes

Finding a programme that truly adapts to your journey, not the other way around, is rare. However, EWOR offers the kind of depth and flexibility that many local programmes simply can’t match. Instead of following a fixed curriculum, our fellowships are modular and tailored – giving you the right support at the right time, based on where you are in your journey.

But the real strength of EWOR goes beyond structure. Fellows often describe the community as the most unexpected – and valuable – part of the experience. As some have put it: “The real magic lies in the community: the kind of conversations, insights, and connections that lead not only to breakthroughs – but to lasting friendships with some of the most fascinating people they’ve ever met”.

3. Talent and Workforce Availability

One of the greatest assets of launching a startup in Austria is access to a skilled and diverse talent pool. With universities producing top-tier graduates in technology, business, and other fields, startups can tap into a wealth of expertise to help grow their teams.

Austria has a strong talent pool for startups, supported by reputable educational institutions like technical universities in Vienna and Graz, which provide skilled graduates in technology and engineering fields. The country's vocational training system also contributes a skilled workforce. Key industry-specific skills available include software development, cybersecurity, AI, cloud computing, and data analysis, crucial for the growing tech sector. Austria's talent pool, including a rising number of international professionals, supports entrepreneurial growth by providing the expertise needed for innovation and scaling businesses. While competition for talent exists, particularly with larger European hubs, the local workforce is a significant asset.

Like funding, competition for talent can be fierce, especially for highly specialised roles in fields like software development or AI. For startups looking to scale quickly, hiring the right people at the right time can be a challenge, leading some founders to look outside the region for remote talent solutions.

Get Global While Local

While hiring locally in Austria can be competitive and slow, EWOR gives you instant access to a global network of exceptional talent. Built by founders for founders, the EWOR team has launched and exited companies worth over €12 billion – and they bring that experience directly into your venture. It's not just about funding or surface-level advice; it's akin to having a co-founder from day one. 

The team collaborates closely with you to refine your idea, challenge your thinking, and support you through real-world decisions – just like a hands-on partner would. Moreover, with EWOR’s exclusive co-founder pool, you can find the right person to build with, regardless of their location.

4. Infrastructure and Support Systems

Austria boasts a strong infrastructure that supports the growth of new businesses. From modern office spaces to high-speed internet, entrepreneurs have access to everything they need to run their startups smoothly. Government policies may also provide tax breaks, legal support, and other incentives that make starting a business more attractive in this region.

Austria offers a robust ecosystem for startups, featuring strong infrastructure and extensive support systems. This includes numerous co-working spaces, incubators, and accelerators across key cities like Vienna, Graz, and Linz. These hubs provide not only physical space but also crucial mentorship, networking opportunities, and access to expertise. Government initiatives play a significant role. The federal development bank, Austria Wirtschaftsservice (AWS), offers various funding programs like AWS Seed Financing and AWS Preseed, along with incubation support. The Austrian Research Promotion Agency (FFG) focuses on funding research-intensive startups. Additionally, the New Companies Promotion Act (NeuFöG) provides tax exemptions for new businesses, and the recent Flexible Company (FlexCo) legal form simplifies company formation. Regional programs and initiatives like Vienna Business Agency grants further strengthen the ecosystem, helping businesses thrive from early stages through growth.

But what looks good on paper often proves more complicated in practice. Bureaucracy can be time-consuming and opaque, especially for first-time founders unfamiliar with local laws. Incorporation takes longer than expected. Accessing public funding often means navigating slow processes, strict requirements, or hard-to-reach advisors. And operational costs – from accounting to regulatory compliance – can quickly eat into early budgets. 

A System That Moves With You

With access to expert guidance, practical legal resources, and a network of experienced entrepreneurs who’ve built across a range of regulatory systems, EWOR is well positioned to help founders navigate the bureaucratic and legal complexities that often come with building in Austria. Instead of wasting time figuring things out alone, you’ll have the tools and support to stay focused on what matters most – growing your venture.

And while we’re remote-first, our support is anything but distant. Through in-person gatherings like the EWOR House, city-based meetups, and our twice-yearly Grand Pitch event, you’ll still build meaningful relationships with investors, peers, and mentors. It’s a system that helps you focus on building – not just dealing with paperwork.

Can Austria Be Considered the Best Place to Launch a Startup?

There’s no doubt that Austria provides a vibrant environment for startups, with access to funding, innovation, talent, and infrastructure that can help entrepreneurs build successful businesses. For many, it’s a strong contender for the best place to launch a startup, thanks to its growing entrepreneurial ecosystem and support systems.

Entrepreneurs launching startups in Austria may face several challenges. Competition exists across various industries, requiring strong differentiation. While Vienna is noted for relatively affordable living costs compared to other major European hubs, overall costs can still impact operational expenses and talent acquisition, especially when competing with established companies for skilled workers. Regulatory hurdles include administrative complexity, significant paperwork, and compliance requirements. Labor regulations, while providing employee security, can pose challenges for startups needing flexibility. The process of company formation can involve mandatory notary involvement and can be time-consuming.

However, it’s important to remember that the location of a startup is no longer the be-all and end-all. In today’s digital age, location-independent options like EWOR allow entrepreneurs to access world-class mentorship, funding, and resources from anywhere in the world. Whether you’re based in Austria or elsewhere, EWOR’s remote programmes are designed to support founders no matter where they are located.

So, while Austria offers significant advantages, it’s worth considering options like EWOR that enable you to launch and scale your startup with global support – whether you’re in the heart of a bustling startup hub or working from a quiet corner of the world.

Image credits: by Andreas Brücker on Unsplash