eu funding for sme's and startups
TRANSCRIPT
Horizon 2020The SME Instrument
Horizon 2020 SME Instrument P
a
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
Grants are for single SME’s and Startups with
innovative disruptive ideas
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)
• http://ec.europa.eu/easme/sme-instrument-
beneficiaries
• €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
Success Rates per topic
SMEs not afraid to ask for big money
Profile of successful SME’s 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
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
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 it’s targeted only at a national market, it won’t be supported
by the SME Instrument.
• The protection of intellectual property is also very important and must be
explained.
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!).
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.
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
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
Newcomers or old-hands
For further information contact:
01 727 2751
061 777048
Support
What to do next?
• Talk to the European Advisors…
• www.horizon2020.ie
• Fill out one page project description… http://www.horizon2020.ie/who-to-contact/sme-instrument/
http://www.horizon2020.ie/career-fit/
Dr Imelda Lambkin
01-7272665