EU funding for SME's and Startups

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  1. 1. Horizon 2020The SME Instrument
  2. 2. Horizon 2020 SME InstrumentPa Companies this makes sense for Research and Prototyping largely completed Taking a new disruptive product that is ready to attract early adopters in the market Good Management team Have 30% of the project cost The Funding is to implement a commercial business opportunity, not an R&D project. Implementation of business plan Scale the business big commercialisation 70% funded by EU. 6 months duration 70% funded by EU. 1-2 years duration No EU Grant funding; Loan and soft supports. EIB/EIF finance. Phase 3 Loan based finance Phase 2 0.5m - 2.5m Phase 1 50k Prepare business plan and apply for phase 2 Application to grant approval 3 months (Phase 1) 6 months for phase 2 applications. Open call
  3. 3. Grants are for single SMEs and Startups with innovative disruptive ideas
  4. 4. Who is getting funded? 1/3 of grants have been awarded to startups Ireland is one of the most successful countries in Europe in the SME Instrument 42 Phase 1 (2M) 26 Phase 2 (43M) beneficiaries
  5. 5. 1.12m 0.66m 0.64m 2.48m 1.09m 0.18m 1.72m 1.01m 4.27m 4.49m 0.99m 1.6m 1.26m 0.40m 2.75m 2.20m 3m 1.12m Irish Successes 1.12m 1.52m
  6. 6. Success Rates per topic
  7. 7. SMEs not afraid to ask for big money
  8. 8. Profile of successful SMEs in H2020 For-Profit SME Legally established in Europe with resources Innovate prototype at TRL 6 Disruptive business idea with clear market application Track record eg National funding, private investment Rapid growth prospects
  9. 9. What makes a successful application? Ability to recruit A skilled team Underlying market growth A scalable business model A solid financial plan Long term value Well written proposal
  10. 10. Successful Applications demonstrate a disruptive innovation, Have a clear ambition to grow at EU level, a demonstrated knowledge of your target market and a convincing commercialisation plan. will generate revenues and create jobs. Explain the market conditions and the evolution of the competition. Provide concrete and realistic figures on the market size, the market share, the sales price. Show at least 3 years of projection of sales volume, turnover and number of jobs created. Will demonstrate that your project has a European or international dimension. If its targeted only at a national market, it wont be supported by the SME Instrument. The protection of intellectual property is also very important and must be explained.
  11. 11. Why do proposals not get funded? 1.Too much focused on the project and not enough on the business opportunity; 2.Not convincing when describing the company (you have to explain why your company will succeed and not your competitor); 3.Not providing enough information on competing solutions; 4.Having a too low level of innovation, planning to develop a product that already exists on the market; 5.Proposing just an idea without any concept for its commercialisation; 6.Just trying their luck (the SME Instrument is not a lottery!).
  12. 12. Proposal Structure 5 Sections and Administrative Forms 1. Excellence 2. Impact 3. Implementation 4. Members of the Consortium 5. Ethics and Security Threshold (out of 15) 13 points for Phase 1 12 points for Phase 2 Impact x1.5 when determining the final ranking In order to win, you have to get close to the Maximum.
  13. 13. Eligible Costs for SME Instrument proposals Direct Personnel costs (directly employed) Travel Equipment / Infrastructure (Depreciated) Other direct costs Consumables Disseminstion/IPR Audit Subcontracting eg clinical trials, testing Indirect costs - 25% of direct costs except for subcontracting
  14. 14. Payments 30% up front (within 30 days of signing Grant Agreement) Based on deliverables determined in Grant Agreement 15% withheld until all actions are completed
  15. 15. Newcomers or old-hands
  16. 16. For further information contact: 01 727 2751 061 777048 Support
  17. 17. What to do next? Talk to the European Advisors Fill out one page project description Dr Imelda Lambkin 01-7272665