The Sunset of Tempo: A New Era for Finnish Startup Funding
For years, the Tempo grant from Business Finland was the holy grail for early-stage Finnish startups and international founders relocating via the Startup Residence Permit. It provided up to €50,000 in non-dilutive R&D funding (covering 75% of a €66,667 project budget) with a relatively low barrier to entry: just €30,000 in liquid capital or investment on the company's balance sheet.
However, as part of a strategic realignment and in response to state budget adjustments, Business Finland permanently closed the Tempo grant in October 2025.
To fill this critical gap in the early-stage innovation pipeline, Business Finland has introduced Sprint funding as its primary R&D instrument for small companies. Sprint represents a significant shift: while it offers double the maximum grant amount of the old Tempo grant, it enforces a much stricter capital and balance sheet requirement.
This guide details the transition from Tempo to Sprint, outlines the new eligibility criteria, and explains how this impacts startup operations in Finland.
1. Comparing the Funding Instruments: Tempo vs. Sprint
Understanding the differences between the discontinued Tempo grant and the active Sprint instrument is critical for financial planning:
| Feature | Discontinued: Tempo Funding | Active: Sprint Funding |
|---|---|---|
| Max Grant Amount | €50,000 | €100,000 |
| Funding Ratio | 75% of project costs | 75% of project costs |
| Minimum Project Budget | €66,667 | €133,333 |
| Required Balance Sheet Capital | €30,000 (Liquid assets/equity) | €50,000 in Paid-in Equity |
| Company Age Target | Early-stage startups (<5 years) | Small startups and pivoting SMEs |
| Call Type | Closed (October 2025) | Continuous (Starts September 1, 2026) |
2. Core Eligibility Requirements for Sprint Funding
To secure a positive decision on a Sprint application, a company must satisfy three core conditions set by Business Finland:
1. The €50,000 Paid-In Equity Rule
This is the most significant hurdle for pre-revenue startups. Under the old Tempo system, founders could show €30,000 in a bank account (including loan commitments). For Sprint, the company must have at least €50,000 in paid-in equity (osakepääoma or sijoitetun vapaan oman pääoman rahasto - SVOP) recorded on its official balance sheet.
- Loans (such as founder loans or convertible notes) do not count toward this equity requirement unless they are formally converted into equity first.
2. High-Growth Innovative Business Model
Just like the first startup statement vetting, the company must possess a scalable, technology-driven business model with clear international growth potential. Pure service agencies or local retail businesses do not qualify for Sprint.
3. Competent Team & Resources
The company must have a dedicated, balanced team (technical, business development, and clinical/domain expertise) capable of executing the project. The business must also prove it has the matching funds (the remaining 25% of the project budget, plus working capital) to complete the R&D cycle.
3. How the Transition Impacts Expat Founders
For international founders moving to Finland via the Startup Residence Permit, the closure of Tempo and introduction of Sprint impacts two areas:
1. Higher Initial Capitalization Required
Previously, a startup team could incorporate a Finnish Oy with a nominal share capital (e.g., €2,500) and rely on personal funds. To unlock the first €100,000 grant from Business Finland, the company must now raise or inject €50,000 in equity immediately after incorporation. This makes early alignment with local business angels or venture studios essential.
2. Double the R&D Funding Potential
On the positive side, if the startup can meet the €50,000 equity threshold, it can secure €100,000 in non-dilutive funding instead of the previous €50,000 limit. This provides a much stronger capital runway to build complex artificial intelligence engines (like ambient scribes or diagnostic tools) without needing to raise dilutive VC capital too early.
4. How Pomegroup De-Risks Your Sprint Application
At Pomegroup Studio, we adapt our venture building pipeline to the latest Finnish regulatory and financial updates. We help you navigate the new Sprint requirements by:
- Securing the Equity Threshold: We help structure your initial company capitalization and introduce you to local angel networks to secure the mandatory €50,000 paid-in equity on your balance sheet.
- Structuring the R&D Project: We write the technical and operational R&D project plan required by Business Finland, aligning it with our software development sprints.
- Executing the Technical Build: We provide the full-stack engineering muscle to deliver the product milestones defined in your Sprint project.
If you want to build your startup in Finland and navigate the new Business Finland Sprint funding guidelines with a partner, let's connect.
Apply to Co-Build with Pomegroup or read the official guidelines directly on the Business Finland Website.