Grants & SubsidiesFree Money orJust a lot of Hasle<br />Maarten  Laga<br />Maarten@Sampi.be<br />
What are wetalking about<br />Direct Grants – Hard CASH<br />Not: taxincentives, social securitybenefits,  consultants vou...
Whytake the money<br />Its’s Free Money,  Right?<br />Almostalways: costreimbursment (% of costs made)<br />Return the mon...
Why NOT to go for the money…<br />Administrative hazards<br />Selectionproblem: Which program for whatproject…<br />Comple...
The REAL DANGER ishowever: the Innovation Trap<br /><ul><li>Young, high tech oriented SME: </li></ul>Academic foundations<...
How to avoid the Innovation Trap(personalexperiences)<br />Can we escape? <br />Cfr the ‘Crossing the Chasm’ theory <br />...
Conclusions<br />Anyone CAN getgrant money on somelevel<br />All youneedis to <br />Pick the right type of program, fittin...
Contact<br />If  youwant more information or help on this: <br />Maarten Laga<br />Sampi  - Innovation  Management<br />Ma...
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Grants & Subsidies - Free Money or just a lot of hassle?

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a Bizcamp 2009 presentation by Maarten Laga

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Grants & Subsidies - Free Money or just a lot of hassle?

  1. 1. Grants & SubsidiesFree Money orJust a lot of Hasle<br />Maarten Laga<br />Maarten@Sampi.be<br />
  2. 2. What are wetalking about<br />Direct Grants – Hard CASH<br />Not: taxincentives, social securitybenefits, consultants vouchers, … <br />Government Grants for SME’s and Start Ups<br />Local Government (Province, Regional)<br />€20K - €200K range<br />National Government<br />European Union (FP7, …)<br />€100K - €500K range<br />Mainly for <br />Innovation projects and ideas<br />Technology, business models, …<br />New ‘in the world’ or ‘new to yourcompany’<br />Business modeling, marketstudies, IP studies<br />
  3. 3. Whytake the money<br />Its’s Free Money, Right?<br />Almostalways: costreimbursment (% of costs made)<br />Return the money in case of ‘problems’, audits, …<br />Convertible to stock in some cases<br />Is it MORE thenjust Money?<br />Innovation stimulator:<br />let’s do something new, becauseitwillgive us free money…<br />Sounding board <br />Vision expansion<br />International collaboration Academic // Corporate // SME interaction<br />Internal Motivator<br />Financial support – life line<br />Good stepping stone for VC rounds<br />Risc minimizer<br />
  4. 4. Why NOT to go for the money…<br />Administrative hazards<br />Selectionproblem: Which program for whatproject…<br />Complexrules, speficifwriting style per instance,… <br />Lotery style proposal selection process<br />‘Politicaly correct’ consortium composition<br />IPR background // foreground issues<br />Financial Viability demands<br />Project after life: Financial audits<br />Consortium problems <br />Motivation differences<br />Funding / Research / Personal Gain / …<br />Priority differences<br />
  5. 5. The REAL DANGER ishowever: the Innovation Trap<br /><ul><li>Young, high tech oriented SME: </li></ul>Academic foundations<br />Early (technical) employees: motivation = creation<br />grant projects add: <br />In the early stage, typically<br />Abundant funds (too much easy-money?)<br />Technology & Innovation oriented projects, not market oriented<br />Diversion from market focus<br />Grant projects risc to lead to The Innovation Trap <br />No customers  insufficient product steering<br />No market oriented products  no customers <br />
  6. 6. How to avoid the Innovation Trap(personalexperiences)<br />Can we escape? <br />Cfr the ‘Crossing the Chasm’ theory <br />Technology platform vs Solution Provider<br />Anyhow: <br />Professional Board (VC)<br />Strategy revisions<br />Serieus reduction in Grant-projects (and financial dependency)<br />Participation on strict condition of ‘strategic fit’ <br />Reduction in R&D team<br />Farewell to technological founder<br />Customer focus <br />Pilot projects with paying customers <br />
  7. 7. Conclusions<br />Anyone CAN getgrant money on somelevel<br />All youneedis to <br />Pick the right type of program, fitting to yourproject<br />Windfall<br />Some start ups are alive (and kicking) thanks to grant-projects<br />Pitfall<br />I may have lost 2-3 years on co’s growth curve due to the luxury of project money<br />Grant projects <br />May create innovation in European/Belgian/Flemish SME’s<br />But do not create products for a market<br />Venture Capital may be a way to bridge this gap<br />
  8. 8. Contact<br />If youwant more information or help on this: <br />Maarten Laga<br />Sampi - Innovation Management<br />Maarten@Sampi.be<br />+32 475 94 92 93<br />

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