A startup is a young company that is just beginning to develop. Startups are usual small and initially financed and operated by a handful of founders. These companies offer a product or a service that is not currently being offered elsewhere in the market, or that the founders believe is being offered in an inferior manner.

A startup usually cease to be startup after approximately three years in business or once it is acquired by a larger company, possess more than one office, over five people on the board or if the founders have sold their shares.

The Central Bank of Lebanon implemented Circular 331 with the purpose of incentivizing Lebanese banks to invest equity in: 

• Startups;
• Incubators or accelerators the object of which is limited to supporting the development, success and growth of startups in Lebanon; and 
• Companies whose object is limited to investing venture capital in start-ups.

The local banks receive a seven-year interest-free credit from BDL, which can be invested in treasury bonds with an interest rate of 7%. In return, the bank commits to investing in the knowledge economy. Local banks can invest up to 3% of their capital in startup support entities, funds or directly into startups. BDL guarantees 75% of the investment, de-risking it by mitigating the potential losses and reducing them to a mere 25%.