Horizon 2020: Accès au financement à risque et soutien aux ... · PDF filecycle, for all types of innovation, ... business environment and competitiveness ... Micro-finance Creative

Marie-Cécile RouillonPolicy Officer Unité B.3 "PME, Instruments Financier & Aides d'Etat" DG Recherche & Innovation@ EU Access to Finance Day – Paris 23 mai 2014

Horizon 2020: Accès au financement à risque et

soutien aux entreprises innovantes

PolicyResearch andInnovation

What is Horizon 2020?

Framework funding programme for all EU research & innovation-related activities (2014-2020)*

A core part of Europe 2020, Innovation Union & European Research Area:

- Responding to the economic crisis to invest in future jobs and growth

- Addressing people’s concerns about their livelihoods, safety and environment

- Strengthening the EU’s global position in research, innovation and technology

* Total budget amount of EUR 77 billion (in current prices)


Supporting SMEs throughout the innovation cycle…

… to stimulate growth by means of increasing the levels of innovation in SMEs, covering their different innovation needs in each phase of the cycle, for all types of innovation, thereby creating more fast-growing, internationally active SMEs.

All types of innovation

More impact!!

Horizon 2020SME Support


Integrated Approach to SME Support

SME Instrument7%

Collaborative Projects

13%

Eurostars IIEnhancing Innovation

CapacityMarket-driven Innovation

Access to Risk Finance

20 % budgetarytarget in LEITs &

SC*

'Innovation in SMEs'**

*= EUR 8.65 billion (in constant prices) of direct SME support, incl. approximately EUR 3 billion to be allocated to the SME Instrument over the period 2014-2020 ** = EUR 616 million (in constant prices) in direct SME support via Eurostars II, and in indirect support via innovation and market capacity building activities

Horizon 2020Complimentarity

Access to Risk Finance:EUR 2.7 billion (in constant prices) net of administrative costs, of which at least 1/3

should go to SMEs and small midcaps

Possible "top-up" from other budgets


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H2020 Access to Risk Finance

WHAT SUPPORT IS ON OFFER?

Risk-sharing in the form of loans and guarantees Risk finance in the form of equity

FOR WHO or WHAT?

RDI-driven/ innovative SMEs & small midcaps Ambitious RDI projects carried out by a variety of recipients (companies,

stand-alone projects etc.)

TO SERVE WHICH PURPOSES?

Stimulate more investment in research and innovation, notably by the private sector

Intervention only to address financing gaps in the R&D&I delivery chain (notably due to high risk), and as such help translate R&D results to the market (/innovation)

IMPLEMENTED HOW?

Demand-driven ("first come, first served") Via banks, funds and other intermediaries at European level (European

Investment Bank, European Investment Fund) and national/ regional level

The Basics


H2020 Access to Finance: Which contact for companies?

RSFF IIMainly Midcaps and large corporates*

EIB

RSI II GIF 1.2SMEs and small

midcapsSMEs and small

midcaps

Financial intermediary*

*Bank or a financial institution selected on the basis of the call for expression of interest that signed an agreement with the EIF

Financial intermediary **

**Fund selected on the basis of a call of expression of interest that signed an agreement with the EIF

EIF EIF

DEBT EQUITY

*All entities will be eligible also PPPs, universities, research infrastructures, etc, provided they can borrow money

Financial intermediary*

EIB

SMEs/Midcaps: Loan < €25 m

Horizon 2020 Access to Finance


Type of beneficiary: public or private, of any size (mostly midcapsand larger companies), research infrastructures, universities, SPV… willing to finance RDI projects - loan amounts above EUR 7.5 million

Under Horizon 2020: focus on midcaps and loans up to 50m

Contact: EIB / or for midcaps: EIB or future intermediaries

Eligibility check for EU risk-taking: if direct loan: by Commission / if intermediaries: by intermediaries (ex-ante innovation check list)

EIB's risk pricing based on: costs of funds, administrative marging(no profit margin), risk margin (reflecting expected and unexpectedrisk, determined according to EIB's Credit Risk Policy Guidelines)

Timeline (current RSFF, direct EIB loans): half of the loans signedwithin 12 month after 1st contact

budget RSFF-II for 2014-2015: around €200 million

More information: http://www.eib.org/products/rsff/

Horizon 2020 Access to Debt

"RSFF II" (larger loans >7.5m)


Type of beneficiary: innovative SMEs and small midcaps(up to 500 employees): ex-ante list of pragmatic innovative criteria

EIF provides guarantees and counter-guarantees

Contact: financial intermediaries having signed a guaranteeagreement with EIF (or in an agreement with counter-guarantors)

Intermediary performs due diligence, fixes the interest rate BUT: must transfer the financial benefit of the guarantee to companies

Uncapped RSI guarantees cover up to 50% of each loan

Guarantee priced to the intermediary (for RSI sustaibability)

Timeline for a loan: depends on intermediary's practices (no ex-ante assessment by EIF/EC, but ex-post monitoring)

budget 2014-2015: around €160 million

More information & list of intermediaries: http://www.eif.org/RSI

Horizon 2020 Access to Debt

"RSI II" (smaller loans <7.5m)


Regular update on EIF's Website: http://www.eif.org/what_we_do/guarantees/RSI/Rsi_intermediaries.htm

FP7 RSI Results Access to Debt

FP7: More than €1.2 bn in guarantees

PolicyResearch andInnovation10

Zeta Biopharma: a plant construction company in Austria with 237 employees providing process technology for biopharmaceutical applications by supplying global pharmaceutical companies with individually designed plants

The company is one of only two in Europe to use freeze and thaw containers for storage and transport of substances for the pharmaceutical industry. These liquids can be frozen in a controller storage facility for years and are often sent to markets worldwide.

The working capital loan covers Zeta’s high working capital requirements during the long lead times in plant engineering and manufacturing. It helps the company to implement additional R&D projects and to achieve faster growth.

RSI Intermediary: UniCredit Bank (Austria)

Loan Amount: EUR 2.5 million

PolicyResearch andInnovation11

CS-Beton: one of the biggest producers of concrete goods for pavements, roads, highways and airports

introduce a special spray - “Clean protect” to prevent dirt sticking to its concrete, highly resistant to frost as well as de-icing chemical agents.

160 employees, the company is currently developing some new concrete products providing completely new designs for bus stops, new solutions for road covers and large retaining walls with a view to continue growing the business across the Czech Republic and beyond.

RSI Intermediary: Česká spořitelna

Loan Amount: CZK 20.700.000 CZK (EUR 807.490 equivalent)

RSI EXAMPLE: CS-Beton, Czech Republic Highly resistant "Clean protect" Spay for concrete


Early stage finance for innovative enterprises (notably seed and start-up companies); limited growth-stage finance also possible together with COSME; indirect implementation (i.e. via VC funds mainly) / ("GIF 1.2") [budget 2014-2015: around €75 million(*)]

Pilot facility for technology transfer (under development) to bring R&D results from public research organisations and universities to the market (licensing; creation of spin-off companies) ("TTFF") [budget 2015; around €60 million(*)]

(*) subject to budget availability / final allocation decision

Equity Finance

Horizon 2020 Access to Equity


Accompanying measures

Horizon 2020 Access to Finance

Technical assistance [EIB – €16 million for 2014-2017(*)]Improving 'bankability' and investment-readiness of large,complex projects suffering from sub-optimal investmentconditions and needing substantial, long-term investments inorder to come to fruition

Assessing the Investment Potential of innovative SMEsEmerging from Phase I of the SME Instrument (startingin 2014/2015)

Studies (on Business Angels & Crowd-Funding, VCFunds-of-Funds)

Calls for Proposals: Capacity-Building in TechnologyTransfer, Boosting Investment-Readiness of SMEs andSmall Midcaps (focus on mentoring, coaching, investmentreadiness, etc.)



Links to other EU programmes: COSME

Horizon 2020 and COSME are complementary programmes to generate growth and jobs

Different focus: Horizon 2020 = innovation-driven SMEs COSME = riskier SMEs, support to create favourable

business environment and competitivenessClosely coordinated with for instance: Complementary financial instruments (debt and

equity), with facilities in both programmes serving complementary objectives

Enterprise Europe Network set up under COSME, but support to SMEs in terms of advice on EU funding

Horizon 2020 / COSME


Horizon 2020 http://ec.europa.eu/programmes/horizon2020/en/area/smes http://ec.europa.eu/programmes/horizon2020/en/h2020-

section/access-risk-finance http://ec.europa.eu/programmes/horizon2020/en/h2020-

section/innovation-smes

SME Techweb – http://ec.europa.eu/research/sme-

techweb/index_en.cfm

Financial Instruments RSFF

http://www.eib.org/products/rsff/ RSI

www.eif.org/what_we_do/guarantees/RSI/index.htm

EU Access to Finance -www.europa.eu/youreurope/business/index_en.htm

InformationUseful Web Links


Participant Portal: http://ec.europa.eu/research/participants/portal/desktop/en/funding/sme_participation.html Calls for proposals Horizon 2020 documents Support services Evaluation experts

ACTIONParticipate via…

Research andInnovationResearch andInnovation

Background information


EU Financial Instruments

Research& Innovation

Growth, Jobs and Social Cohesion

Infrastructure

Horizon 2020Equity, debt, guarantees

Instruments under European Structural &

Investment Funds (ESIF)

EU level

Off-the shelf instruments

Tailor-made instruments

SME Finance Initiative(ESIF + COSME/H2020 +

EIB/EIF)

Competitiveness & SMEs (COSME)

Equity & guarantees

Connecting Europe Facility (CEF)Risk-sharing (e.g. project bonds) and equity

Social Change & Innovation

Micro-finance

Creative EuropeGuarantee Facility

Erasmus for allGuarantee Facility

Shared managementCentrally managed by COM

EU Financial InstrumentsFull Picture


How do we define ‘midcaps’ under Horizon 2020 Financial Instruments?

small midcaps working definition

o 250 to 499 employees in full-time equivalents

medium & large midcaps working definition

o 500 to 3000 employees in full-time equivalents


Expertise Technical assistance [Named beneficiary(EIB) – 2014 – 4 years

- €16 million for 2014-2017(*)]

Improving 'bankability' and investment-readiness of large, complex projects suffering from sub-optimal investment conditions and needing substantial, long-term investments in order to come to fruition

Assessing the Investment Potential of SMEs Emerging from Phase I of the SME Instrument (starting in 2014/2015)

Establishing a group of investment specialists, operating in a personal capacity, to assess the investment potential of SMEs emerging from Phase I of the SME Instrument and ease/speed up for promising SMEs access to risk finance.


Accompanying measures (2014/15)

Horizon 2020 Access Risk Finance


Studies Understanding the Nature and Impact of Angel and

Crowd-Funding in R&I [2014 – €0.75 million (*)]

This study should produce a comprehensive picture of what is happening in these rapidly developing areas and pave the way for possible EU-level action in 2015/2016.

Assessing the Potential for EU Investment in Venture Capital Funds-of-Funds [2014 – €0.27 million (*)]

The study should deliver concrete recommendations for a potential pan-European Fund-of-Funds ("ideal house") in view of EU-level action, if relevant, starting in 2016 following preparations in 2015.

Greek Presidency Conference on financial instruments [June 2014 – €0.1 million (*)]


Accompanying measures (2014)



Capacity-Building in Technology Transfer (CBTT 1) [CSA –15/4/2014 – €2.5 million (*)]

Increasing the skills-base

Spreading best practices and tacit knowledge

Strong emphasis on mentoring, coaching, twinning, secondments

Complements Technology Transfer Financing Pilot

Boosting Investment-Readiness of SMEs and Small Midcaps (BIR 1) [CSA – 15/4/2014 – €2.5 million (*)]

Addresses 'investment readiness' of SMEs and small midcaps

Builds on FP7 experience

Strong emphasis on both training entrepreneurs andsensitising potential investors

Complements Investment Potential of SMEs expertise measure


Calls for Proposals / Grants (2014)


Research andInnovationResearch andInnovation

SME support in Horizon 2020:The SME Instrument


Funding Gap (range: 1-3 M€)

PME: Déficitde Financement


?

IDÉE soutien continu durant tout le project MARCHÉ

Validation du concept et de la faisabilité

Recherche Développement d'applications commercialesDémonstration

Commercialisation

Enchaînement possible avec autres instruments financiers (UE) pour PME

Marchés publics

Instrument PME

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Horizon 2020 Instrument PME


• Visant tous types de PME innovantes en quête d'expansion, de développement et d'internationalisation

• Seules les PME peuvent demander du soutien / du financement• Possibilité de soutenir / financer une PME unique • Bottom-up tout en répondant aux défis sociétaux et/ou technologies clés chaque défi sociétal / technologie clé définit un sujet au sens large

• Les PME voulant participer ne seront pas forcées de passer par toutes les trois phases; chaque phase sera ouverte à toutes les PME

• L'instrument offre une combinaison d'activités de recherche, de développement d'applications commerciales et de démonstration (tests, prototypage, …)

• Environ 3 milliards EUR via des subventions & la possibilité d'accéder à un soutien spécific à l'innovation

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Horizon 2020 Instrument PME


Phase 1: subvention forfaitaire de € 50,000Phase 2: budget moyen des projets estimé à € 1,5 million; afin de garantir des délais relativement courts pour l'octroi des subventions, la suggestion est de financer des projets sous la barre des € 2,5 million

Sur sept ans:

Phase 1: 5,200 projets seront financésPhase 2: 1,700 projets d'une taille budgétaire moyenne de € 1,5 million peuvent être financés (ou 2,550 de € 1 million en moyenne; 1,250 de € 2 millions en moyenne)

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Implémentation

Documents

Horizon 2020: Accès au financement à risque et soutien aux ... · PDF filecycle, for all types of innovation, ... business environment and competitiveness ... Micro-finance Creative