How startups and highly innovative companies can exploit european funding

©NikolaosFloratos,Fundingexpert.academy

WhyyoucannotaffordtofailinEUgrantmechanismsforSMEsandstartups

NikolaosFLORATOS,Founder

hFp://www.keyinnovaKons.co.uk


Copyright©NikolaosFloratos,www.fundingexpert.academy

Allrightsreserved.Nopartofthisworkbookmaybereproduced,distributed,ortransmiFedinanyformorbyanymeans,includingphotocopying,recording,orotherelectronicormechanicalmethods,withoutthepriorwriFenpermissionofthepublisher,exceptinthecaseofbriefquotaKonsembodiedincriKcalreviews

andcertainothernoncommercialusespermiFedbycopyrightlaw.Forpermissionrequests,emailtothepublisherNikolaosFloratosatnf@cyberall-

access.com


WhoisNikolaosFloratos•  FounderofFundingExpertAcademyprogrammesthat

mastersindividualsinEUfundingprogrammesandexploitsthemostsuccessfulandlargestno.ofproposaldevelopersacrossEurope

•  Ac4veineuropeanfundingindustrysince1997(19+years)

•  ECexpert/evaluatorsince2003(13+years)•  Authoroftheebook“LearnfromtheHorizon2020

champions”downloadablefromwww.NikolaosFloratos.com

•  TrainedandcoachedhundredsofconsultantsandorganisaKonsonexploiKngsuccessfullyEUfunds

•  TheonlyprofessionalinthewholeEuropewith40+recommenda4onsinmylinkedinprofile(www.linkedin.com/in/floratos)asexpertineuropeanfunds,trainer/coach

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EssenKalsforSMEsandstartupsfundingmechanisms

BasicConcepts


FundingtosupportonlyanddirectlyinnovaKveSMEs

ProgrammeName:InnovaKonforSMEs–SMEInstrumentMainAreas:TheaimoftheSMEInstrumentistofillthegapsinfundingfortheearlystages,ResearchandInnovaKonandacceleraKngtheexploitaKonofinnovaKon.Availablebudget:€2,8billionMoreinfo:hFps://ec.europa.eu/digital-single-market/en/sme-instrument-0

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EuropeanFundingforenterprisesespecialySmall–Medium

ProgrammeName:COSMEMainBeneficiaries:SMEs,EnterprisesMainAreas:AcKonsthatadvanceateuropeanleveltheInnova4onandcompe44venessofSMEsMainPar4cipants:SMEsAvailablebudget:€2.22billionMoreinfo:hFps://ec.europa.eu/easme/en/cosme

ProgrammeName:EUROSTARSMainBeneficiaries:SMEs,consumers,enterprises,industryMainAreas:AcKonsthatadvanceateuropeanleveltheInnova4onandcompe44venessofSMEsMainPar4cipants:R&Dperforming(highlyinnovaKve)SMEsthatcreateimpacttotheidenKfiedbeneficiariesAvailablebudget:€1.2billionMoreinfo:hFps://www.eurostars-eureka.eu/

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BudgetforSMEs

COSME

Eurostars

SMEInstrument

BUDGETmainlyforSMEsandstartups

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€6,22billion


SMEinstrument

SocietalChallenges

LeadershipinEmergingandInnovaKve

Technologies

Horizon2020

2,8billion€2014-2020

€168MillionforadministraKon

2,63billion€fundingforForefrontknowhow

GrowthBeFerlifeforEUciKzens

6%

94%

€376Millionfunding

VeryconservaKveAssumpKons

ProposalDevelopmentcostaround3%of

requestedfunding

7%Successrate(~1/14)

AssumeyearlyProposal

Developmentcostaround3%of

requestedfunding

93%failedrate

(~13/14)

~11million€spentannuallyforsuccessfulproposalsoftotalbudget376million€

€154millionspentannuallyforfailedproposalsInSMEInstrument

WHYYOUCANNOTAFFORDTOFAILinEUgrantmechanismssuchasSMEinstrument!

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Conclusion1Amount(€)organisaKonsspentintotaleveryyearfordevelopingandparKcipaKnginproposalsthatfailtoreceivefundinginSMEinstrument:

€154Μillion

BigneedforeffecKvetraining,coachingandsupport!

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SMEinstrument

Country…

Country2

Country1

1,2billion€2014-2020

€72MillionforadministraKon

1,13billion€fundingforForefrontknowhow

GrowthBeFerlifeforEUciKzens

6%

94%

€161Millionfunding

VeryconservaKveAssumpKons

ProposalDevelopmentcostaround3%of

requestedfunding

25%Successrate(~1/4)

AssumeyearlyProposal

Developmentcostaround3%of

requestedfunding

75%failedrate

(~3/4)

~4,83million€spentannuallyforsuccessfulproposalsoftotalbudget161million€

€14,5millionspentannuallyforfailedproposalsInEurostarsprogramme10

EUREKA/EUROSTARSProgrammeandwhyyoucannotaffordtofail


Conclusion2SMEsshouldfocusalsoinotherrelatedfundingopportuniKesforsupporKngthedeploymentoftheirinnovaKveproductssuchasEurostarsthatsuccessrateisquiteaFracKve

25%successrate*

*Source:ExecuKveAgencyforSMEshFps://ec.europa.eu/easme/en/small-companies-applying-eurostars-grants-have-25-success-rate

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FundamentalsinfundingforSMEs

WhyEuropeanFunding(itspurpose)–ThreePrioriKes•  Createforefront(newanduseful)knowledgeinEurope(e.g.seeallthreepillarsinHorizon2020)

•  AdvanceGrowth(e.g.see2ndpillarinHorizon2020:LEIT–LeadershipinEmergingandIndustrialTechnologies)

•  ImproveQualityoflifeofEuropeanCiKzens(e.g.see3rdPillarinHorizon2020–SocietalChallenges)

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ValleyofDeath

ValleyofDeath

ProjectsforSMEs

ECFunding~70%

1.Fore-frontknowledge2.Growth&CompeKKveness3.QualityoflifeofEUCiKzensSuccessful

DisseminaKon

&ExploitaKonStrate

gy

NewrequirementforallEuropeanprogrammesincludingSMEinstrumentfortheperiod2014-2020.AconvincingDisseminaKonandExploitaKonStrategy

isrequiredwithintheproposalapplicaKon

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7MythsinSMEinstrument•  Myth1:ItisalmostimpossibleforastartuptobesuccessfulinSME

instrument•  Myth2:Itisextremelydifficulttoconvinceevaluatorsforthehighquality

ofourSMEproposal•  Myth3:Aproject/productinnovaKveatanaKonallevelissuitablefor

SMEinstrument•  Myth4:BeingsuccessfulinSMEinstrumentrequiresalotofKmeand

resources•  Myth5:ParKcipaKnginaeuropeanprojectforSMEssuchasSME

instrument,Eurostars,COSMEmayjeopardisetheownershipofmyexpectedinnovaKons

•  Myth6:PerfectcommandofEnglishisneededforagreatSMEinstrumentproposal

•  Myth7:SubmitngandimplemenKnganSMEinstrumentprojectisacomplicatedprocess

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Myth1:ItisalmostimpossibleforastartuptobesuccessfulinSMEinstrument

•  ItistruethatSMEinstrumenthasbeenmainlydevelopedforSMEs,howeverstartupsfrommanycountrieshavereceivedfinancialfundingfromSMEinstrument(SourceEASMEupdateApr16)

•  Therefore,failureisnotbasedonSME/startupssizebutonthefollowing–  InnovaKondisKncKonofsuggestedinnovaKon– MaturitylevelofsuggestedinnovaKon–  EuropeanmarketprospectsofsuggestedinnovaKon–  Startups/SME’scapacitytoadvancesuggestedinnovaKon–  DisrupKonlevelofsuggestedinnovaKon(New,usefulandsavingresources)

–  Lackofsupport(coaching,training,etc)fromSMEinstrumentexperts

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Myth2:ItisextremelydifficulttoconvinceevaluatorsforthehighqualityofourSMEproposal

•  Itistruethatveryfew(6%-10%)ofSMEproposalsimpresstheevaluatorsbutmainlybecausetheyfailtoprovideclearandwelljusKfiedpresentaKonofthefollowingintheirsuggestedinnovaKons:–  Excellencequality:InnovaKondisKncKon,productmaturitylevel,SME’steamscapacity,marketopportuniKes,marketdisrupKon

–  Impactquality:European/globalmarketposiKoning&prospects,europeanpoliciessupport,exploitaKonstrategy

–  ImplementaKonquality:workplanquality,teamresources,implementaKonmethodology,riskconKngencymeasures

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Myth3:Aproject/productinnovaKveatanaKonallevelissuitableforSMEinstrument

•  ItisagoodstarKngpointforinnovaKonsestablishedatnaKonalleveltoexploitSMEinstrumentbutnotenough,sincetheyshouldalso– bedisKnctateuropeanorgloballevel– addvaluetoeuropeanorglobalmarkets

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Myth4:BeingsuccessfulinSMEinstrumentrequiresalotofKmeandresources

•  FailedproposalsinSMEinstrumentstartfromscratchduringtheproposaldevelopmentprocess

•  SuccessfulproposalsinSMEinstrumenthavealreadyaclearvisionandhaveworkedtowardsthat.ThisimpliesthatpartsoftheirapplicaKonformshouldbebasedonexisKng(evendravs)of–  Apreliminarymarketanalysis(marketposiKoning)–  ApreliminaryinnovaKonanalysis(disKnctinnovaKons)–  Apreliminaryimpactanalysis(expectedbenefits)

•  TheseanalysesareessenKalnotfortheproposaldevelopmentbutalsoforself-assessingthesuccesspotenKalintheSMEinstrument

•  Anyanalysisshouldbebasedonreliablesources

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Myth5:ParKcipaKnginSMEinstrumentmayjeopardisetheownershipofmyexpected

productsOnthecontrary,sinceSMEinstrument•  requiressuccessfulapplicantstoensurethattheIntellectualPropertyRightsoftheirinnovaKonsareprotected

•  financiallysupportsthecostsforpatenKngataeuropeanorgloballeveltheirinnovaKons

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Myth6:PerfectcommandofEnglishisneededforagreatSMEinstrumentproposalPerfectcommandofEnglishisnotneededatallbut•  AlthoughproposalsunderSMEinstrumentcanbesubmiFedunderanyofficiallanguageofEuropeanUnion,Englishisstronglyrecommended

•  ProposalsecKonsshouldbewellstructuredbasedonclarity,concisenessandcrediblesources

•  Easytounderstandlanguageshouldalwaysbeused,sincemostoftheSMEinstrumentevaluatorsdonothaveasmothertonguetheEnglishlanguage

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Myth7:SubmitngandimplemenKnganSMEinstrumentprojectisacomplicated

process•  SMEinstrumentproposalsshouldbesubmiFedonlinebasedonaspecificprocessbut– Althoughsubmissionprocessisstraightforward,itrequiressomepre-requisites(e.g.tohaveaPICno.,SMEstatusvalidaKon)

– AnadministraKveperson,normallyasecretarycanbeinvolvedintheproposalsubmission

•  AcceptedprojectsinSMEinstrumentreceivefinancialsupportforanyspecialisedtaskssuchasinconducKngfeasibilitystudy,businessplan,marketanalysis,etc.

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HowcanyoubesuccessfulineuropeanfundingprogrammesforSMEs

FundingExpertTransforma4onProcessFETPTMFormula


FundingExpertTransformaKonProcess

• UnderstandhowSMEinstrumentmechanismworks

• IdenKfythemostaFracKvefundingtopicsforyourneeds

Step1

• Followritualsreligiously• MasterallacKonsfrominiKaKnganaFracKveideatosuccessfulsubmission

Step2

• Preparegreatproposal• Masterhowtowriteaconvincingproposal

Step3

5Fingers’Technique

I.C.R.E.A.T.E.S.system

C.R.I.T.E.R.I.A.Formula

DailyHabits

B.U.N.D.L.E.R.Habits

FromStruggle ToSuccess

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The7HabitsofSMEFundingChampions

B.U.N.D.L.E.R.TMFormula


B.BuildtoLast!

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B.BuildtoLast!

©FundingExpert.Academy

EuropeanfundedprojectsforSMEs

shallsupportthe

•  missionofyourorganisaKon

•  visionofyourorganisaKon•  CreaKonofforefrontknow-how•  Jobgrowthandcompe44veness

•  IncreasethequalityoflifeofEUciKzens

•  i.e.don’tfallinthe“ValleyofDeath”

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U.UpsettheStatusQuo!

27


U.UpsettheStatusQuo!•  YouknowtheSMARTobjecKves

•  Specific

•  Measurable

•  Achievable/Againable•  Realis4c/Relevant•  Time(in)

•  Theyarenotcomplete,sinceSMARTobjecKvesarenotInnova4ve!

•  ThinkoutsidetheboxandbeinnovaKve

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N.NeverEatAlone!

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N.NeverEatAlone!


Threemealsinaweekday•  2mealswithfamily,friends,old

colleagues•  1mealwithnewcolleagues,

partners,clients,funders,experts,mentors,projectmanagers,etc

•  i.e.260mealsinayearforsharingideas,connecKng,getngfeedback,establishingpartnerships

•  Whataboutcoffee?•  AFendinfodayeventsDroptherule“AskandShallReceive”andadoptthemoFo“GiveandShallReceive”

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D.Don’tDelayit,Delegateit!

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WinningSMEinstrumentProposalsrequireteamswitha1.   ProposalLeader2.   ProposalWri4ngTeam(in-house

teamincl.anExpertintheproposaltopic

3.   Secretary4.   Evaluator

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AProposalLeaderisresponsiblefor•  Coordina4ngtheproposalwriKng

process•  “Ea4ng”withexperts,funders,

potenKalsupportersandgetngfeedback

•  Engagingcompetentsupporters•  Coordina4ngtheallocaKonofbudget

andresources•  Coopera4ngwiththesecretaryfor

theadministraKveandsubmissionprocess

•  AssessingthequalityofproposalsecKonsandcontribuKonsandtakingproperacKonsforfurtherimprovements

•  Coopera4ngwiththeevaluatorfortheproposalreview

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TheProposalWri4ngTeamisresponsibleforwriKngtheproposalsecKonsbasedontheC.R.I.T.E.R.I.A.formula/EvaluaKonCriteria

•  Consor4um•  RelevanceoftheProject•  Innova4on•  TranseuropeanDimension•  Economic•  Reputa4on•  Impact•  Approach

Tipno.1:DelegatedifferentsecKonstoindividualsaccordingtotheirexperKseandcompetencies

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“Secretary”isresponsiblefor1.   Collec4ngalladministraKve

documentsfrompartnersifapplicablesuchasagreements,profiles,CVs,LeFersofsupport,NDAs,adminformsincludingPIC,etc

2.   SubmijngthewholeapplicaKonincoordinaKonwiththeproposalleader

3.   EnsuresthatthefocusoftheothermembersisinwriKnganexcellentproposal

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“Evaluator”responsibleforassessing1.  theproposalidea2.  Theproposalsummaryand3.  Theproposalfinaldrav

FeedbackgivenshouldalwaysbecriKcalandincludesuggesKonsforfurtherimprovement.Thereisnoproposalthatisperfect

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L.LearnthatGoodistheEnemyofGreat

VoltaireEnlightenmentWriter

37


L.LearnthatGoodistheEnemyofGreat 1.  Buildaprofoundproposalsummary

thatengages2.  Network,network,network.3.  Realisethateverythingcountsbut

firstimpressioncountsmore4.  PrepareanimpressiveintroducKon5.  Buildtheproposalaccordingtothe

selecKonawardcriteria6.  EngageanEvaluatorasexternal

reviewer7.  Don’tmakecompromises!

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L.LearnthatGoodistheEnemyofGreat Greatproposalshaveveryfew

compromises,i.e.•  Nocompromisesinthepartnership•  NocompromisesinthequalityofeachproposalsecKon

•  Nocompromisesbyavoidingpreparingawellstructuredsummary

•  Nocompromisesingetngfeedbackbyexperts,funders,partners,clients

•  …

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E.EndorseaSharpenAxe!

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Onceupona*me,averystrongwoodcu5eraskedforajobina*mbermerchantandhegotit.Thepaywasreallygoodandsowastheworkcondi*on.Forthosereasons,thewoodcu5erwasdeterminedtodohisbest.Hisbossgavehimanaxeandshowedhimtheareawherehesupposedtowork.Thefirstday,thewoodcu5erbrought18trees.“Congratula*ons,”thebosssaid.“Goonthatway!”Verymo*vatedbythebosswords,thewoodcu5ertriedharderthenextday,buthecouldonlybring15trees.Thethirddayhetriedevenharder,buthecouldonlybring10trees.DayaNerdayhewasbringinglessandlesstrees.“Imustbelosingmystrength”,thewoodcu5erthought.Hewenttothebossandapologized,sayingthathecouldnotunderstandwhatwasgoingon.“Whenwasthelast*meyousharpenedyouraxe?”thebossasked.“Sharpen?Ihadno*metosharpenmyaxe.Ihavebeenverybusytryingtocuttrees…”

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Thus,neversayforexamplethatIamaproposalwriterand•  Idon’tdonetworkingwithfundersandexpertsor

•  Idon’tconnectwithpotenKalpartnerssupportersor

•  Idon’tneedtowriteanimpressivesummaryor

•  Idon’tneedtodelegate•  …

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R.RecogniseMistakesasLearningOpportuni4es!

B.U.N.D.L.E.R.

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R.RecogniseMistakesasLearningOpportuni4es!

Wearelearningfromourmistakes,therefore,•  Learnfromyourmistakesbutmostimportantly

•  Learnfromthemistakesofothers

B.U.N.D.L.E.R.

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FollowupAcKvityAttheendofeachdayself-checkthestatusofyourB.U.N.D.L.E.R.habits,i.e.AskyourselfthefollowingandifyouarenotsaKsfiedwithyouranswers,workharderunKlitbecomesahabit!ü  Haveyoubeenbusywiththingsthataremeanttolast

today?ü  Haveyouupsetthestatusquotoday?ü  Haveyoueatenwithanotherpersonatyourwork

today?ü  Haveyoudelegatedthingstoday?ü  Haveyoupreparedsomethinggreattoday?ü  HaveyoudonethingsoutsideyourdailyrouKnethat

makeyoumoreeffecKve?ü  Haveyoulearnedanythingtodayfromyourmistakesor

frommistakesofothers?


Tip!

Ul4matecheck/testques4onatopensessiononchoosingthemostsuitableproposalidea:IfIwinthelo5erytoday,willIs*llgoaheadwiththisidea

andinvestthewinningsinsteadofreques*ngfunding?

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•  Joinmeatmylinkedinprofilewww.linkedin.com/in/floratosand/or

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•  IfyouwanttoaddfurthervalueonwhatyouhavelearnedsofarandmasterindepththeFundingExpertProcessforSMEsandstartups,youcanjoinfundingexpertacademyatwww.fundingexpert.academy

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How startups and highly innovative companies can exploit european funding