Giving early-stage companies the tools they need to build Luxembourg’s future
Startups are not like the rest of us. They speak their own language, follow a faster timeline, manage their finances differently and work with leaner teams.
It is no secret that the Grand Duchy is vying for position as Europe’s next big startup hub, more specifically as a leader in fintech. Between Digital Luxembourg, the House of Entrepreneurship, the LHoFT and Luxinnovation, the government has laid out the welcome mat. We all have a part to play in growing the country’s economy, and some of us service providers, fiduciaries included, are already positioned to give young businesses a helping hand.
Creating soft landings for new businesses
Startups have a notoriously low success rate, with half of those failures occurring within the first five years. The longer a company lasts, the more likely it is to stay afloat. New businesses are good for all of us, spurring the economy, bringing innovation and boosting quality of life. How, then, can we help?
Transitional periods are generally times of spending, not earning, for startups and can prove fatal in those early years. Luxembourg’s government and local nonprofits know that keeping a startup alive in the long term means helping them from day one.
Here is where the concept of a soft landing for startups comes into play. Fiduciaries with specific startup expertise, such as Fiduciary Tucci & Partners, can not only steer a startup past administrative pitfalls and expensive mistakes, but can help them harness and cope with future growth.
Fiduciary services for startups can be an answer to the soft-landing dilemma, a central topic in government and incubator boardrooms.
A common cause: Helping startups help LuxembourgWhile organizations like Innohub are a valuable soft-landing resource, all of us can play a part in boosting Luxembourg’s blossoming startup scene — from fiduciaries to creative agencies to developers.
Many of us service providers are already in position. For example, unlike large startup support organizations, fiduciaries are accustomed to working on both a small and large scale, moving between the two freely. We know what it’s like to handle the HR, payroll, accounting and tax requirements of large corporations, but we also understand the challenges facing small companies, families and individuals.
We work with all of them. Our objective, task-based support gives startups an affordable, nimble way to quickly handle financial, legal and administrative hurdles as they arise. Fiduciary Tucci & Partners’ level of involvement can ebb and flow with their needs.
As a fiduciary, we already handle solutions required by early-stage companies:
- Company setup (i.e. articles of incorporation)
- Notary services
- Legal assistance
- Drafting of contracts
- Tax support
- Compliance guidance
- Government liaising
Launching a startup in an entirely new country and entering the fundraising stage bring with them a whole new host of needs. Startups often cannot turn to robust teams of internal experts for advise. Therefore, they generally look outward to bring on the required talent at a moment’s notice.
Nurturing Luxembourg’s future with fiduciary services for startups
Growing Luxembourg’s economy is on all of us.
Our little, yet strong country is undoubtedly defined by its leading role in the financial world. According to a recent PWC study, 82 percent of incumbent financial institutions plan to increase their partnerships with financial technology startups within the next five years. Forty-five percent are currently partnered with fintechs to harness blockchain, big data and other startup innovations difficult for large, slow-moving organizations to achieve on their own. Fifty-six percent have made disruption a priority.
The government has proven effective in putting Luxembourg on the startup map. However, it’s this newfound openness of traditional financial institutions — potential clients for many startups — that will keep young companies coming.
The future of Luxembourg’s economy is bright. Entrepreneurs and young businesses should know that all of the services they need can be found in their own backyard.
For our part, Fiduciary Tucci & Partners is committed to taking the growing pains out of growing by providing fiduciary services for startups. We hope to contribute to the bigger picture of strengthening the Grand Duchy as a hub of innovation.
Share your goals with us & ask how we can help you get there. Questions about trends, regulations & requirements? Curious about Luxembourg? Fiduciary Tucci & Partners can help answer your queries & find solutions.