This document provides information about the objectives, budget, funding amounts, evaluation process, and key elements of proposals for the SME Instrument, which is part of the European Innovation Council. The SME Instrument supports high-risk, high-potential small and medium enterprises to develop and commercialize innovations like new products, services and business models. Proposals are evaluated based on excellence, impact, and quality of implementation. Key elements that should be addressed in proposals include convincing specifications of demand, description of the innovation and competitors, realistic growth plans, protection of intellectual property, and experience of the management team.

1. BODÓ György
Expert evaluator –EASME programme
11 April 2019 – Bucharest
European Commission - REA
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2. EIC SME Instrument – Funding objectives
 The SME Instrument addresses small and medium-sized
enterprises (SMES) with a radically new idea underpinned by a
business plan for rolling out marketable innovation solutions
and with ambitions to scale up.
 It supports high-risk, high-potential SMEs to develop and
bring to market new products, services and business models
that could drive economic growth.
 The SME Instrument is designed for For-profit SMEs, including
young companies and start-ups, from any sector. You must be
established in an EU Member State or a Horizon 2020
associated country
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3. Budget for the EIC Accelerator/SME Instrument
Indicative Budget 2018 2019 2020
Overall yearly budget €479.74 million €689.26 million €654 million
Phase 1 10% 6% -
Phase 2
Accelerator - Grants
87% 85.60% 89%
Accelerator - Equity
Support
- 5.40% 8%
Phase 3 1% 1% 1%
Coaching and mentoring 1% 1% 1%
Evaluation 1% 1% 3
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4. Funding per application – Horizon 2020
€ 71 429 € 3 571 428 Total cost →
The difference should be covered by Own contribution / funding
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5. SME instrument - proposal
 Writing the proposal to convince the evaluator to invest in your business.
Evaluators are multi-cultural and from different area of expertise!
 It is a business proposal – try to focus on the rather business aspects then
the scientific one!
 Present the customer benefit, why someone would like to buy (pay for) your
solution
 Focus on innovation – and what makes you different (differentiation factors)
 Focus on the team competences, knowledges and previous experience –
and where applicable partnerships, memberships
 Show your values, distinctions/awards you get, previous funding etc.
 Realistic and achievable deliverables
There is no single Business plan
that fitting all needs!
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6. SME instrument - proposal
 Focus on European values, impacts, benefits, international exposure, social
benefits, environmental impact etc.
 Present your growth ambition – but not to exaggerate!
Keep realistic forecast!
 Consider the risks for your business. Be realistic and make a reasonable
assessment and mitigation actions
 Use credible source of information, that can be checked and clearly
referenced
 Protect your knowledge and show your care for the innovation
 Keep clear wording (focus on the essence) and pay attention to the overall
aspect of your proposal
 Keep in mind the submission deadline
Focus on what evaluators are
looking for!
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7. Phase 1 - Funding
 A lump sum of € 50 000 in EU funding and 3 days of coaching
 Feasibility study
 Initial 10 page business proposal to be submitted
 70% funding rate
 Around 6 months in duration
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8. Phase 2 - Funding
 Develop project through innovation strategy
 Around 12-24 months in duration
 Between €0.5 million and €2.5 million in EU funding (exceptions apply)
 and 12 days of coaching
 Draft a more developed, 30 page business plan
 70% funding rate
 TRL 6 or above recommended
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9. Phase 1 – evaluation process
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10. Phase 2 – evaluation process
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11. Admissibility / Eligibility check
 Admissibility - proposals must be:
➢ Readable , Accessible and Printable
➢ Complete (all requested forms)
 Eligibility:
➢ SME status, country (EU Member States and Countries Associated to Horizon
2020)
➢ Limited number of pages (10 for Phase 1; 30 pages for Phase 2) Excess pages
are blanked
➢ Only one application per company allowed for all phases (no concurrent
submission or implementation allowed)
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12. Eligible costs
 Direct costs – as those related to the implementation of the project, such
as personnel cost, travel, equipment, infrastructure, goods, and services
 Costs that are corresponds to the tasks upon in the grant agreement
 Consulting cost – for IPR analyse, market potential, assessment or
development of an innovation strategy;
 Marketing costs – necessary to implement the project (under a work
package “communication activities”
 Subcontracting – under attentive observation (see next)
https://ec.europa.eu/research/participants/data/ref/h2020/grants_manual/amga/h2020-amga_en.pdf
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13. Evaluation criteria
All proposals are evaluated based on three award criteria:
 Excellence: your project has high innovation potential and is beyond the
state of the art. It has a strong added-value, it is viable and better than
existing solutions.
 Impact: your innovation meets a pressing need on European and global
markets, it will generate revenue and create jobs and has an international
dimension.
 Implementation: your work plan is efficient and coherent with a realistic
time-frame. Your team has the technical and commercial competence to
deliver.
➢ Attention !! SUBCONTRACTING (mainly for Phase 2)
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14. Subcontracting – assessed by “Best value for money” criteria
 Costs must be reasonable and comply with the principle of sound financial management
 This can be ensured by applying a competitive selection procedure and/or demonstrating
how the best value for money is ensured
 If subcontractors are known, evaluator should ensure that there are sufficient details for
➢ The action tasks, the award procedure, the name of the subcontractor, the price and object, the
explanation why the subcontractor and the price are appropriate.
 If subcontractors are unknown, evaluator should ensure that there are sufficient details for:
➢ The action tasks, the estimated budget, the procedure that will be followed to ensure best value-for-
money.
➢ If the above information is not provided, this shall be reflected in the assessment of the Quality &
efficiency of implementation criterion.
We are using public money and we are looking for
the best price-quality ratio!
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15. Evaluation of the proposals
A qualitative assessment will be provided for each sub-criterion (unweighted
median score):
 Very Good to Excellent (4.5 – 5)
 Good to Very Good (3.5 – 4.49)
 Fair to Good (2.5 – 3.49)
 Insufficient to Fair (1.5 – 2.49)
 Insufficient (0-1.49)
IMPACT is scored 50%, EXCELLENCE for 25% and IMPLEMENTATION for 25%
Minimum score is 13 out of 15 and all sections should pass 4
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16. Evaluation of the proposals
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17.  Awarded to projects that passed the
quality threshold – evaluation criteria
 Cannot be funded under the available
budget for the respective call
 Recognise the value of the proposal and
support for search alternative funding
 Any organisation with funding power
interested in investing in promising
companies will appreciate the SEAL of
EXCELLENCE
Seal of Excellence
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18. https://ec.europa.eu/easme/en/eic-sme-instrument
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19. Implementation
- deliverables
assumed by the
project proposal
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20. Implementation – Monitoring report / deliverables
Table x – Deliverables submitted in Period 1
D# Deliverable name WP# Lead Type Level Due Date Status
D1.1 Use cases and unitary goals report 1 Company R CO M05 Submitted to EC
D1.2 API description 1 Company R CO M06 Submitted to EC
D1.3 Pay-me-attention architecture 1 Company R CO M06 Submitted to EC
D2.1 Speech acquisition and feature normalization 2 Company DEM CO M06 Submitted to EC
D2.2 Blind-Source Separation of signals 2 Company DEM CO M09 Submitted to EC
D2.3 Voiceprint generation and biometrics normalization2 Company DEM CO M10 Submitted to EC
D2.4 Continuous Speech Recognition module 2 Company DEM CO M12 Submitted to EC
D2.5 Speech analytics report 2 Company R CO M12 Submitted to EC
D6.1 Interim Periodic Report 6 Company R CO M12 Submitted to EC
D7.1 POPD - Requirement No. 1 7 Company EXP CO M05 Submitted to EC
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21. Monitoring the implementation – key elements
 Progress report is in line with the objectives – overall Impact
 Check the deliverables assumed by the projects – vs. Objectives
 Confirm the deliverables are in accordance with the project proposals
 Milestones are achieved? – measureable evidences!
 Risk assessment – intermediary evaluation, Confirm or change if the case
 Resources used are in line with the project (staff, equipment, purchases etc.)
 Subcontracting – check invoices from contributors vs. deliverables
 Deviations from project assumption and real deliverables
 Dissemination of the results
 Gender balance, environmental impact, social benefits etc.
 Recommendations of the evaluator
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22. Key elements of proposal
Convince the
evaluator
Business
proposal
Customer
benefit
Focus on
innovation
Team
competences
Show your
values
European
impact
Realistic
forecast
Risk
assessment Credible
information
Knowledge
protection
Clear wording
Focus on what evaluators
are looking for!
Submission
deadline
Deliverables
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23. European Commission - REA
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24. Where to
find more
details
https://ec.europa.eu/easme/en/eic-sme-instrument
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25. Where to
find more
details https://ec.europa.eu/easme/en/eic-sme-instrument/how-apply
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26. Where to
find more
details
https://ec.europa.eu/easme/en/eic-sme-instrument/horizon-2020-european-innovation-council-
sme-instrument-briefing-experts-2019
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27. BODÓ György
Expert evaluator –EASME programme
11 April 2019 – București
European Commission - REA
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28. Impact – 50% WEIGHTING valuation of the proposals (8 criteria)
1. Convincing specification of substantial demand (including willingness to pay) for the
innovation; demand generated by new ideas, with the potential to create new markets, is
particularly sought after.
2. Convincing description of targeted users or customers of the innovation, how their needs
have been addressed, why the users or customers identified will want to use or buy the
product, service or business model, including compared to what is currently available if
anything at all.
3. Realistic and relevant analysis of market conditions and growth-rate, competitors and
competitive offerings, key stakeholders, clear identification of opportunities for market
introduction, market creation or disruption
4. Realistic and relevant description of how the innovation has the potential to scale-up the
applicant company (or companies). This should be underpinned by a convincing business
plan with a clear timeline, and complemented, where possible, by a track-record that
includes financial data.
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29. Impact – 50% WEIGHTING valuation of the proposals
5. Alignment of proposal with overall strategy of applicant SME (or SMEs) and commitment of
the team behind them. Demonstration of need for commercial and management experience,
including understanding of the financial and organisational requirements for commercial
exploitation and scaling up (and - Phase 2 only) as well as key third parties needed.
6. Commercialisation plan and how this will be developed further (in-house development,
licensing strategy, etc.). Phase 2 : Realistic and relevant strategic plan for commercialisation,
including approximate time-to-market or deployment. Activities to be undertaken after the
project.
7. European/global dimension of innovation with respect to both commercialisation and
assessment of competitors and competitive offerings.
8. Evidence of or realistic measures to ensure 'freedom to operate' (i.e., possibility of
commercial exploitation), convincing knowledge-protection strategy, including current IPR
filing status, IPR ownership and licensing issues. Regulatory and/or standards requirements
addressed.
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30. Excellence - 25% WEIGHTING valuation of the proposals (5 criteria)
1. High-risk/high-potential innovation idea that has something that nobody else has. It should be better
and/or significantly different to any alternative. Game-changing ideas or breakthrough innovations are
particularly sought after. Its high degree of novelty comes with a high chance of either success or failure.
2. Realistic description of current stage of development , and clear outline of steps planned to take this
innovation to market.
3. Highly innovative solution that goes beyond the state of the art in comparison with existing or competing
solutions, including on the basis of costs, ease of use and other relevant features as well as issues related
to climate change or the environment, the gender dimension, any other benefits for society, or (Phase 1
only) includes plans for obtaining this information.
4. Very good understanding of both risks and opportunities related to successful market introduction of the
innovation from both technical and commercial points of view or (Phase 1 only) includes convincing plans
for obtaining this information.
5. Objectives for the innovation proposal as well as the approach and activities to be developed are
consistent with the expected impact (i.e. commercialisation or deployment resulting in company growth).
Appropriate definition provided of specifications for outcome of project and criteria for success.
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31. Quality and efficiency of implementation - 25% WEIGHTING (3 criteria)
1. Technical/business experience of the team, including management capacity to lead a growing team
➢ If relevant, the proposal includes a plan to acquire missing competences, namely through partnerships and/or
subcontracting*, and explains why and how they are selected (subcontractors must be selected using 'best value-for-
money' principles).
2. Availability of resources required (personnel, facilities, networks, etc.) to develop project activities in the
most suitable conditions.
➢ Where relevant, realistic description of how key stakeholders / partners / subcontractors could be
involved* (subcontractors must be selected using 'best value-for-money' principles).
➢ Where relevant, the estimated budget and the procedure planned for selecting the subcontractors are appropriate*.
3. Realistic timeframe and comprehensive description of implementation (work-packages, major
deliverables and milestones, risk management) taking the company's or applicant's innovation ambitions
and objectives into account.
*Subcontracting - is acceptable to the extent required for the implementation of the proposed activities.
Subcontracting may be an essential part of the implementation of the project, but should not be a disproportionate
part of the total estimated eligible costs. Subcontractors must be selected using 'best value-for-money' principles.
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