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Back to Luxembourg investors
FUNDRAISING GUIDE

Fundraising in Luxembourg

Fintech and fund hub at the heart of Europe

Luxembourg is a small but strategically important ecosystem in the heart of Europe. As the largest investment fund domicile in the EU and home to significant fintech and space tech activity, it offers founders direct access to institutional capital, favorable fund structures, and a highly international business environment. The government actively funds startup support through Luxinnovation and the Digital Tech Fund.

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Ecosystem highlights

EU investment fund capital

Luxembourg hosts over €5 trillion in investment fund assets. Startups in fintech and wealthtech can access relationships with fund administrators, custodians, and asset managers concentrated in a single city.

Space tech cluster

Luxembourg has invested heavily in the space economy, hosting SES and a range of new space startups supported by the SpaceResources.lu initiative and dedicated government funding.

Digital Tech Fund

Government co-investment fund providing equity alongside private investors into early-stage Luxembourg-based tech startups.

Highly international workforce

Over 70% of the workforce is non-Luxembourgish. English is the working language for most startups and investors, and the country's central location makes European travel straightforward.

Fundraising tips

  • Incorporate in Luxembourg if you are targeting EU fund structures or regulated financial services. The legal environment is well-understood by institutional investors.
  • Engage the Digital Tech Fund early. They co-invest alongside private VCs and provide a strong signal to international investors.
  • Use Luxinnovation's fit4start accelerator for pre-seed validation before approaching institutional capital.
  • Luxembourg's ecosystem is small. Build relationships with the Luxembourg House of Financial Technology (LHoFT) to access fintech-specific investor networks.
  • Given the size of the domestic market, demonstrate a pan-European or global go-to-market from the outset.

Average round sizes in Luxembourg

Pre-seed€100k – €500k
Seed€500k – €2M
Series A€3M – €10M
Series B€10M – €30M

Cultural notes for fundraising

  • 1Luxembourg is trilingual (Luxembourgish, French, German) but most business is conducted in English. Adapt to the language of your counterpart.
  • 2The ecosystem is very small. Reputation spreads quickly, so maintain transparency with all stakeholders.
  • 3Regulatory compliance is taken seriously given the financial services environment. Founders seen as cavalier about regulation will struggle to build trust.
  • 4Investors here tend to be conservative and process-oriented. Be prepared for longer decision timelines than in larger markets.

Key programs and resources

  • Digital Tech FundGovernment-backed co-investment vehicle providing equity into Luxembourg-based early-stage tech companies.
  • fit4startLuxinnovation's pre-seed accelerator offering €50k funding, coaching, and a structured 16-week program.
  • LHoFTLuxembourg House of Financial Technology connecting fintech startups with banks, fund managers, and institutional investors.
  • SpaceResources.luGovernment initiative supporting space economy startups with funding, regulatory guidance, and international partnerships.

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