SME Funding in Horizon 2020 - Are You Ready?

European Research
Funding Experts

SME Funding

Speakers
• Stephan Decher
Fund-raising specialist
Expertise: Manufacturing, Cleantech,
Energy, Environment
stephan.decher@zazventures.com

• Xavier Aubry
Experienced proposal writer (FP6,
FP7, AAL, EUREKA, Eurostars, CIP)
Expertise: ICT, Transportation,
Manufacturing, Health, Energy,
Environment
xavier.aubry@zazventures.com

euproject@zazventures.com

Agenda
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•
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•
•
•
•
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SME Participation in FP7
Overview of Funding Frameworks
Finding the Right Information
Project Application Timeline
Debunking EU Funding Myths
Technology Readiness Level
New SME Instrument in H2020
Advices on Project Application


• FP7 target = 15%
• FP7 actual = 16.7%
• H2020 target = 20%


What is an SME?
• entity engaged in an economic activity
• less than 250 employees
AND turnover < €50M OR balance sheet < €43M
• autonomous (or else upstream/downstream
enterprises have to be included in the calculation)


What is Horizon 2020
• 7 years
• €70Bn


SME Funding in Horizon 2020
• SMEs will receive around 20% of SC + LEIT budgets

€ 8.65 Bn
• H2020 increased opportunities for SMEs
– New instruments
– Simplification
– Synergies with other funding sources (ex: COSME)

• EC wants to make Horizon 2020
“the most SME-friendly EU support program in history”

Overview of Funding Schemes
Program Size

R&D
2007-2013
€53Bn

R&D
2014-2020
€70Bn

SME, Deployment

€3.6Bn

€ 2.5Bn

SME, Innovation

€400M

€1.2Bn


Technology
Readiness
Level

Hurdles to SME Participation in FP7
Quality of information

Portal difficult to
navigate, complex
application procedures

Application timeline

Long time to grant,
complex negotiation
procedures

Technology readiness
level

Focus on research
rather than technology
demonstration

Priority areas and
relevant topics

Top-down approach,
project has to fit in
existing topic line


Source: survey conducted on
600 research performing
SMEs (2013) by THEIA,
IVSZ and CRIC


FP7

CIP

NoE

NCP

E!
CP

CSA

ESR

IP


STREP


• New
participant
portal


Project Application Timeline
Horizon 2020 will aim
to reduce this part of
the process

• Don’t be intimidated by long ”time to grant” periods
– Application results (ESR and invitation to negotiation) come 9-12 weeks after the
application has been submitted, so you know if/when your project will start
– At project start, the consortium will receive 50-60% of the total project funding, so
that there is no need to advance cash
– The post-ESR period can be used by SMEs to ramp up (staff) in preparation for
the project start


A Few Myths around EU Funding



Research & Innovation
Funding level = 100%

Innovation
Funding level = 70%

Innovation
Funding level = 50-80%


Market Replication
Funding level = 50%

SME Instrument (New)


SME Instrument - Examples
SC1 – Health, Demographic
Change and Wellbeing

PHC 12 - Clinical validation of
biomarkers

2014 2015

SC5 – Smart, green and
integrated transport

IT 1 - Small business innovation
research for Transport

2014 2015

LEIT – Information and
Communication Technologies

ICT 37 - Open Disruptive Innovation

2014 2015

LEIT – Nanotechnologies and
Biotechnology

NMK 26 - Accelerating the uptake of
nanotechnologies, advanced materials
or advanced manufacturing and
processing technologies by SMEs

2014 2015

LEIT – Nanotechnologies and
Biotechnology

BIOTEC 5 - SME boosting
biotechnology-based industrial
processes driving competitiveness and
sustainability

2015


Fast Track to Innovation - Example
SC4 – Smart, green and
integrated transport

IT2 Fast Track to Innovation Pilot
Proposals for innovation actions linked to any
technology field will be invited, on the basis of
a continuously open call and a bottom-updriven logic
Three cut-off dates per year to evaluate
proposals (starting 2015)
No more than 5 legal entities shall participate
in an action
Max budget: 3M Euros


2015

New Instrument Comparison
SME Instrument

Fast Track to Innovation

Project composition

Single applicant (stage 1)
Single applicant or mini
consortium (stage 2)

Small consortium
(max 5 organizations)

SME participation

Required
(SME as lead)

Encouraged

Budget

50k Euros (stage 1)
0.5-5M Euros (stage 2)

3M Euros

Deadlines

Continous submission
(3 cut-off dates per year
starting in 2014)

Continuous submission
(3 cut-off dates per year
starting in 2015)

EC Contribution

Typically 70%

Typically 70%


Creating the Dream Consortium
• Finding the right balance
– Universities vs Research organizations vs SMEs vs Large companies
– Geographical balance
– Gender balance

• Involving end-user organizations
– Gain user feedback
– Drive exploitation of results
– In advisory board, user group or as full consortium member

• Building a good consortium is key, but takes time!
– Online search, social media groups, matchmaking events
– Like for any business development activity – qualify!

BANT: Budget, Authority, Need, Timeline


Writing a Killer Proposal
• A significant effort that requires discipline and method
–
–
–
–

Proposal development (incl. consortium) takes on average 400 hours
You need to address all evaluation criteria
You need to make it easy for the reviewers
Only excellent applications get funded (aim for the max score!)

• Frequent mistakes
–
–
–
–

Too late start (less than 3 months before the deadline)
Vague objectives and KPIs
Weak state-of-the-art review
No convincing exploitation & dissemination plan

• How to get started if you have never done it?
– Join a consortium led by a good coordinator (track record)
– Use external consultant specialized in EU project proposals


The Review Process
• Specific challenge
– adapted to each funding scheme and each thematic area
– specified in the work programme

• Main criteria
– Scientific & Technological Excellence
o Concept, objectives, progress beyond state of the art
o WP description, Pert diagram, GANTT chart

– Implementation
o Individual participants and consortium as a whole
o Allocation of resources

– Impact
o Contribution to expected impacts listed in work programme
o Plans for dissemination/exploitation

• Criteria generally marked out of 5
– Individual threshold = 3-4; overall threshold = 11


Evaluation Summary Report (FP7)


Evaluation Outcome
Treshhold

Funding

Effort
+ 100%

Average
Good
Excellent
applications applications applications


Evaluation Outcome
• Calls have become very competitive
– There are a lot of experienced coordinators and proposal writers
– The skill levels have increased over time
– In general, only excellent proposals (ie 13+) get financed

• Make sure you engage the right resources
– Your time is better spent on running your business
– You can’t compete with the experts!
– There are national grants available to engage external help
o SMINT (Vinnova, Sweden, 20k Euros)
o APT (Oseo-Anvar, France, 30-50k Euros)


Project Support Options
Call
Monitoring

Free

Call Identification & Analysis

Consortium
Formation

Success Fee

Partner Search, Partner Validation

Proposal
Development

Success Fee

Proposal Writing (all sections)

Proposal
Review

Fixed Fee

375-975 Euros (depending on length)

EC
Negotiation

Success Fee

Budget and DoW Support

Project
Management

Retainer

Exploitation & Dissemination Support
Administrative Support

Innovation
Workshop

Fixed Fee

Innovation Funding Strategy

Training
Workshop

Fixed Fee

Financial Reporting, Proposal Writing, etc…


Project Support Examples
Funding Program

Project

ESR

CIP-ICT-PSP 2012

MobiCloud

12.5(15)

FP7-NMP-2013

Hippocamp

13.6(15)

FP7-ICT-2013

RASimAs

13.5(15)

FP7-ENV-2013

ResCoM

13.5(15)

AAL-2013

Iron Hand

27(30)

Consortium
Formation

Proposal
Development

Services Provided

EC
Negotiation


Project
Management

Need Support? Contact us!

Stockholm - Brussels - London

SME Funding in Horizon 2020 - Are You Ready?

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