EU funding for SME's and Startups

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:

[email protected]

01 727 2751

[email protected]

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