The SME Instrument Phase 1 received over 2,600 proposals for funding, exceeding expectations. After evaluation, 317 proposals met the threshold for funding but due to budget constraints, only 155 companies could be funded. The evaluation process took longer than planned due to applicants submitting proposals at the last minute. Lessons learned were that successful proposals demonstrated a clear business opportunity and commercialization strategy, while unsuccessful ones lacked market and competitor analysis or had ideas not ready for market.

1. SME Instrument Phase 1:
Results after cut-off
18/06/2014
"Horizon 2020 Small and Medium-Sized
Enterprises"
Executive Agency for SMEs (EASME)

2. We made it, but for a price
The scheme has been accepted and has attracted many SMEs new to the FP. The evaluation worked and results seem to be reliable. Pending legal validations, the 3- months TTG is in reach. We can't make everybody happy and emphasis is on the successful applications.
Disclaimer
This is the very first round of the SME Instrument. Beware of taking deep and elaborated conclusions after this initial round.

3. Proposals received
2.662 proposals received
(our estimation was 2.500)
 success rate: 6%
2503 single company applications,
119 consortia with 2 SMEs, 34 with 3 and 6 with 4 SMEs
2.602 proposals were eligible and evaluated (doublets, withdrawals, some incorrect templates or incomplete proposals)
This is not oversubscription, but shows that the scheme was accepted and that the simplification attempts (10 pages, single company application) bears fruit.

4. Applicants did not use the advantage of the continuous call and evaluation and did only submit very shortly before the cut-off date (85% arrived within 48 h before cut-off)
Therefore evaluation took longer than initially planned (15 July instead of 30 June), leaving just 8 summer weeks for grant preparation.
This & IT difficulties to send fast feedback to applicants before the cut-off dates might call for more cut-offs per year (e.g. every two months)

5. Budget
The Work Programme foresees the following budget distribution:
10% of the budget for Phase 1 and 88% for Phase 2. The remaining 2% are used for evaluators, the business coaching scheme and potential Phase 3 activities (in later years).
The budgets are evenly distributed between the cut- off dates.

6. Companies to be funded
Out of the 2602 applications 317 (12%) are evaluated above threshold (13 points overall).
Based on the positively evaluated applications per topic 155 companies will be funded (6%).
49% of applications above threshold will be funded  every second "good" proposal is funded

7. Total nber Experts
Share
Business general
49
9,4%
Business development
118
22,6%
Business incubation
20
3,8%
Commercial / Marketing
15
2,9%
Entrepreneurship / Start-up
92
17,7%
Finance
25
4,8%
Gender issues
1
0,2%
Innovation advice/management
146
28,0%
Legal expertise / IPR
15
2,9%
Other
9
1,7%
Risk finance (Business Angel Investor / Venture Capital)
31
6,0%
Total
521
100,0%
Evaluators
34% were women. 12% came from universities and research institutes and 88% were from private commercial firms.

8. only countries with submissions are shown

9. The 5 highest "country success rates" are:
Ireland: 20%
Austria: 15%
United Kingdom: 11%
Israel: 10%
Spain: 9%

10. First lessons learned
Unsuccessful proposals were
•too much project focussed, not enough business opportunity oriented
•Description of company not convincing (why would this company succeed and not the competitor)
•No information on competing solutions
•Innovation content too low; product exists already on the market (just incremental improvement)
•Just ideas, no proof of existing commercialisation concept (TRL far too low)
•Just trying ones luck

11. Company size
all topics
UP TO 5 EMPLOYEES 49%
6 TO 10 EMPLOYEES 18%
11 TO 50 EMPLOYEES 22%
MORE THAN 50 EMPLOYEES 9%
UNKNOWN 2%
Staff in Applicant SMEs(All topics)
UP TO 5 EMPLOYEES 33%
6 TO 10 EMPLOYEES 23%
11 TO 50 EMPLOYEES 30%
MORE THAN 50 EMPLOYEES 13%
UNKNOWN 1%
Staff in Funded SMEs(All topics)

12. Company age
all topics
UP TO 3 YEARS 39%
4 TO 10 YEARS 32%
MORE THAN 11 YEARS 28%
UNKNOWN 1%
Years trading of Applicant SMEs
UP TO 3 YEARS 30%
4 TO 10 YEARS 40%
MORE THAN 11 YEARS 30%
UNKNOWN 0%
Years Trading of Funded SMEs

13. Cut-off dates for 2014/2015

14. Thank you!
For more information go to:
http://ec.europa.eu/easme/sme/
@H2020SME
Inquiries at EASME-SME-HELPDESK@ec.europa.eu
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