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Accelerator Programme
2018
MIH2018/004
Call Guideline
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Introduction to the call
The MITA Innovation Hub (MIH) is offering a pre-seed investment and pro bono services of €30,000 to up to
EIGHT early stage startups with the best business idea based on Distributed Ledger Technologies and other
emerging technologies, among them Blockchain, Artificial Intelligence, Internet of Things, immersive
technologies and potentially others.
The call covers a proof-of-concept based on the above mentioned technologies consisting of (a) an idea to
validate on the chosen market through a prototype (b) an already developed and validated idea through an
early prototype requiring further validation.
Startups selected to join our YouStartIT accelerator programme will get an opportunity to research, develop
and create their own marketable Intellectual Property which they can use to kick-start their business and scale
up. The selected Startups are expected to follow the programme on location, meaning the physical presence of
at least one team member in Malta for the entire programme duration.
Startups must propose what they believe is a desirable, feasible and viable solution to the problems affecting
their target market. In the case of both (a) and (b) the value of the ideas proposed must be validated by
market research and customer feedback aimed to test a hypothesis that their chosen customers will use such a
proposed solution and will eventually sustain the business.
Prospective applicants will be offered the opportunity to follow a pre-acceleration workshops to help them
validate desirability, feasibility and viability of their proposed business idea and related business model, as well
as demonstrate their commitment and proactive participation.
The Startups eventually selected to receive the investment will experience transformation of their idea into a
tangible prototype for testing in a market scenario, or further developing and validating their prototype and
market. While doing so they will enjoy the benefits of ongoing interaction with experts and mentors, including
any multinational technology partner interested in providing technical support of relevance to the project.
Published: 24 July 2018
Version: 0.2
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Eligibility criteria
1. The call is designed for tech Startups at an early stage of growth or in business for less than five (5) years.
Startups that have not yet formalised into a business undertaking are expected to do so if selected for
funding. Startups that are already formalised as a business undertaking must not exceed a headcount of
nine (9). To be eligible for funding each Startup applying for this call must ensure its composition and
status is in line with the definition of a startup as articulated in the Letter of Award.
2. Each Startup must avail itself of a team composed of a minimum of two named members with
complementary technical, design and business skills of relevance to the project and the chosen thematic
area. One team member will be assigned the role of a Project Coordinator having the responsibilities
highlighted in Appendix A of the Letter of Award.
3. All the Startup members must have a demonstrable entrepreneurial vision, be ready to learn and
experiment using rapid prototyping approaches, and be ready to pitch their business idea as part of the
selection process, and to investors after having completed the accelerator programme.
4. Employees of MITA wishing to participate are to first seek permission from their Head of Department if
they wish to apply for this call.
If selected for funding, the Startup will be required to:
• Follow the entire programme being physically present in Malta with at least one member attending
all activities and events.
• Register as a business undertaking in Malta (sole trader, partnership or limited liability company).
• Sign a Letter of Award and comply with all related terms and conditions, published together with this
call.
• Sign the Declaration of State Aid, even if not yet incorporated; in such a case each member of the
Startup will jointly sign the declaration.
• Present an employment history form issued by the Employment & Training Corporation or equivalent
agency in their country (only if the startup is already registered as a business undertaking) as evidence
that it does not exceed a headcount of nine (9) employees.
• Submit a copy of a Letter of Engagement or Contract of the second named member if the latter is not
a co-founder.
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Programme description
The programme is split into two phases: (A) Pre-acceleration for a shortlist of approximately 15 Startups, and
(B) Acceleration for the selected FIVE or more Startups. Both phases are mandatory with the two-day
bootcamp being held on location in Malta. Startups that do not participate in the pre-acceleration programme
will be automatically eliminated.
(A) Pre-acceleration
This is a one to two-week long phase culminating in a bootcamp in the two days prior to the final pitch which
will be held as a satellite event forming part of the Delta Summit on 3-5 October 2018. During this phase the
MIH will schedule one-to-one video conference calls to engage in informal and technical due diligence
activities, interview the applicants and further assess their business idea.
The bootcamp, which shall be held on location in Malta, will be a two-day event, during which a set of
activities will be organised (a) to challenge and coach the Startups for the final pitch used for the purpose of
selection, (b) to brief them about what they are expected to deliver during the acceleration phase; this will
include presentations about partnership or company formation, and other related legal, fiscal and business
related matters.
(B) Acceleration
Acceleration is a mandatory programme which only the Startups selected at pitching are contracted to follow
as one cohort after signing the Letter of Award and related terms and conditions covering their four-month
project.
This phase covers:
1. More in-depth validation, customer engagement, rapid prototyping and further testing required to
develop or improve the proposed solution. The Startup will report to the MIH about the status of
tasks and activities in its milestone plan, as well as fulfil all its responsibilities and obligations as
identified in the above mentioned Letter of Award and appendices. These include the delivery of an
Interim Test Report, a Final Report and or Business Plan or equivalent business document (e.g. a
white paper or a marketing strategy). The MIH will provide feedback and advice and connect the
Startup to mentor/s with experience and expertise of relevance to the Startup (e.g. help in drawing
up a marketing plan, business plan or customer persona). This process is done through one-on-one
meetings and through fortnightly cohort meetings.
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2. The MIH’s supporting partners assist the Startup to register into a business undertaking (e.g.
partnership or company formation) and address any specific legal, fiscal or accounting issue (e.g.
shareholders’ agreements, Intellectual Property issues, etc.).
3. Participation of the Startup in the Social Impact Agenda, which is a framework designed to ensure all
Startups being accelerated (a) return some value, talent and knowledge to the local startup
ecosystem (b) learn to be enterprising and entrepreneurial in their attitude and (c) participate
actively in our programme. Details about how the Social Impact Agenda works, and especially its
impact on the final instalment of their grant, can be found in Appendix C of the Letter of Award.
Figure 1 illustrates a representative model of the acceleration period.
Figure 1: Acceleration
By the end of Acceleration, the Startup must demonstrate that it is a credible team that:
• has gained a proven / documented experience with customers in their chosen market, that should
ideally include prospects for further investment
• has completed all/any relevant alpha or beta version testing on their new or enhanced prototype, and
gained customer feedback which informs their Business Plan, Marketing Strategy or related business
document.
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• is able to deliver a fairly well polished product, indicate potential market size and further customer
demand, formulate a growth strategy and raise further funding
If the Startup chooses an area which requires the provision of public data not already made available as open
data, or subject matter expertise in specific sectors of the Maltese public administration, MITA will use its best
endeavours and reputation to support or broker relationships with the relevant government owner of such
data or expertise.
Programme timeline • Applications close Mon 10th September 2018 (23:59 hours CET)
• Communication of shortlisted startups Mon 17th September 2018*
• Pre-acceleration period Thu 20th to Sun 30th September 2018 †
• Bootcamp Mon 1st to Tue 2nd October 2018
• Pitch ideas to panel of judges at Delta Summit Wed 3rd to Fri 5th October 2018 †
• Customisation of project plan and contract signing Mon 7th to Fri 2nd November 2018
• Start of acceleration & project kick-off Mon 5th Nov 2018
• Demo day / completion of programme Sat 4th March 2018 *
* Timelines subject to change.
† Details about the venue will be communicated through our website.
Award Each selected Startup will be awarded an equity free cash grant of up to €20,000 as a pre-seed fund for each
project, together with €10,000 in pro bono services provided directly by the MIH as defined in the Letter of
Award. The latter value excludes any pro bono services provided by our supporting partners listed on the MIH
landing page.
Before applying Prior to submitting their application, Startups are expected to carry out appropriate research and or market
tests intended to define and validate the problem they wish to resolve through their business idea, validate
the customer segment being targeted, describe the actual solution and its business model, and identify their
Unique Selling Proposition.
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To guide them in this process Startups can gain access to Design Thinking material and exercises to help them
in this phase. This is available by clicking on the Hypertext links embedded in the application form. To find out
how to access the application form refer to the next section titled How to Apply. Applicants should ideally
begin filling out the application form early if they want to request feedback or guidance about any issues from
the MIH.
How to apply To apply Startups should first register on the F6S portal and then fill out the application form. To access the
F6S portal, click on the green F6S button on the MIH website. Please ensure you read the MIH Rules of
Engagement and Letter of Award and appendices on the MIH website, as well as the F6S Privacy Policy, Terms
of Use and Cookie Policy before submitting. After completing the application you should submit it by 10th
September 2018 at 23:59 hours CET. Ensure to include in your application any supporting material such as
figures, references, tables, videos, wireframes, mock-ups and links to prototypes. When using links please
ensure that these are available at all times until the selection process is concluded.
Frequently Asked Questions (FAQs) are available on the MIH website www.mih.mt.
Judging criteria All the applications will be shortlisted to approximately fifteen of the best ideas, and the pitches judged in line
with the judging criteria governing the call. Judging of the final pitches will be carried out by MITA with the
assistance of subject matter experts and/or external evaluators. Feedback on the applications submitted will
be provided only to the shortlisted Startups. Further details can be found in Annex 1.
The call does not contemplate any right of appeal regarding grading and selection of the proposal. Hence, the
decision of the judging panel is final.
Pitching your proposal In addition to submitting a written application, each team will be expected to pitch their proposed idea and
concept to the panel of judges. The pitch should not last more than five minutes followed by a five-minute
question-and-answer session. The judges will use the pitch to confirm or review the scores attained by each
application. Teams should therefore view this as an opportunity to convince the panel about the value and
strength of their business idea. Remote pitches by applicants from overseas are allowed in exceptional
circumstances. In such cases, any arrangements to enable this must be agreed with the MIH management
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team. MITA declines any responsibility for the quality of the hardware, transmission media, software or other
infrastructure needed to permit timely and successful delivery of the pitch.
What each selected startup will get During the 16-week intake period each startup will receive the following mentoring and support services:
• €20,000 in cash disbursed in instalments against set deliverables, usually four: (i) upon signing the
Letter of Award (ii) upon complete set-up of a business undertaking (sole trader, partnership or
company), (ii) an interim test report (iii) a final report and or business plan or equivalent business
document (e.g. white paper, marketing strategy) in line with each startup’s agreed plan.
• €10,000 worth of services comprising around 90 contact hours with our in-house and external
mentors, and access to a 24×7 co-working space enjoying breath-taking sea views
• The involvement or participation of the Startup in MIH organised activities such as investor demo
days, meetups, workshops, seminars, focus groups, test sessions, public fora, interviews and press
launches; some of these may be mandatory for all members of the Startups selected for Acceleration.
• Leveraging MITA’s media presence, reputation and endorsement
In addition, the offer of several thousands of Euro worth of:
• Technology and cloud perks from AWS, Google Cloud, Microsoft Azure and ZenDesk (quantities and
credits may vary for each perk provider)
• Assistance for registration in Malta of a formal business undertaking, including specific tax, accounting
and financial advice, as well as legal advice on specific issues such as shareholders’ agreements, IP
advice, GDPR, etc. (up to 100 hours)
The programme starts four weeks after selection to allow for travel and accommodation arrangements. We
will use this interim period to finalise your four month project plan and milestones for inclusion in your Letter
of Award. This is a contract regulating the relationship between you, as the Startup, and MITA, as the funder.
The cash grant is disbursed in line with performance and active participation. The last instalment of the cash
grant is offset against active participation in the Social Impact Agenda. The latter is a point system designed to
ensure that participating startups give back some of their expertise by helping us build a thriving startup
community.
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State aid The MIH Call for Startups operates under the de minimis State Aid regime, which sets out that a single
undertaking cannot receive more than €200,000 in aid over any three fiscal years through schemes operating
under this regime. Applicants should therefore ensure they are eligible for the requested grant under State
Aid rules before submitting an application. Refer to the State Aid Declaration in Annex 2 published with this
call.
The total value of state aid provided through this call is €30,000 per Startup.
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Annex 1 - Judging criteria All applications will be judged in line with the judging criteria and any Preferred Thematic Areas governing the call. This will
be carried out by MITA with the assistance of one or more external evaluators. The following five sets of criteria will be
applied to each submitted proposal.
A. Team credibility – the composition of the startup, the potential for good team dynamics, complementary and
multi-disciplinarity of skills and/or resources available to the team; their ability to deliver a fairly polished product
that will constitute the basis of its declared business goals.
B. Product/market fit – the clarity and insightfulness with which the team has researched, defined and validated the
problem that they intend to resolve (cite any references to surveys, interviews, case studies and any other
relevant secondary sources); the appeal of the proposed solution to the identified customers, and the value to be
delivered; what pains will be solved, and what gains will be achieved by the customer.
C. Feasibility – the attainability of the solution that will address the defined problem using the available resources
within the stipulated timeframe; the team should be able to provide a pre-view of the anticipated features,
functionalities and any relevant data usage; innovativeness and human-centred design of the proposed solution
will be a key criterion; a wireframe or design snippets of the proposed main features should be provided;
D. Business viability – the degree of financial alignment between the proposed product and the declared business
goals; market testability of the product and the startup’s vision to scale up and internationalise; the inputs and
effort needed to realise the product weighed against the benefits and future financial returns.
E. Innovativeness – a combination of one or more of the following factors that are likely to translate into an unfair
advantage of the proposed solution: the degree of newness of the solution or business model to the market, the
potential superiority over existent solutions, and the emerging or high impact nature of the technology used.
The proposals will be ranked according to the score achieved for each judging criterion. The proposal with the highest
score will be selected for funding. Proposals that fail to attain one or more of the threshold scores (see below) will not be
selected for funding.
For each award criteria a score from 0 to 5 will be assigned:
0 - the proposal does not meet the relevant criterion or cannot be judged due to missing or incomplete information.
1 - Very poor: The criterion is inadequately addressed, or includes serious weaknesses
2 - Not satisfactory: Although the proposal broadly addresses the criterion, there still are significant weaknesses.
3 - Good: The proposal addresses the criterion well, although improvements would be needed.
4 - Very Good: The proposal meets the criterion very well, but certain improvements are still possible.
5 - Excellent: The proposal successfully meets all relevant aspects of the criterion in question. Any shortcomings are
minor.
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The respective thresholds for the award criteria are:
Criterion Threshold
A 3 B 3 C 3 D 3 E 3
Based on the scores of the individual award criteria, a total score will be calculated for each proposal. Each Startup
submitting an entry shall be given a report showing the outcome of the evaluation.
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Annex 2-State Aid Declaration
Prior to providing you the assistance being offered by this call, we need to ensure that we comply with state
aid rules1. The assistance is being given under the European Commission’s State Aid regulations. This allows a
company to receive up to €200,000 of de minimis state aid over a rolling three-year period.
To confirm that you are able to receive this assistance you must therefore declare the full amount of De
Minimis aid you have already received over the last three fiscal years.
This maximum threshold would include all state aid granted under this scheme and any other State aid
measure granted under the de minimis rule. Any de minimis aid received in excess of the established threshold
will have to be recovered, with interest, from the undertaking receiving the aid.
The following is not a comprehensive list of the possible forms of State aid. However, it should give an
indication of the most common forms of aid which you could have been given over the past three years:
• Grants from public bodies
• Loans or loan guarantees at favourable rates
• Tax benefits
• Waiving or deferral of fees or interest normally due
• Marketing and advertising assistance
• Consultancy, training and other support provided either free or at a reduced rate
• Aid for investment in environmental projects or research and development assistance
• Purchase, rent or lease of immovable property at less than market rate.
Potentially any assistance from a public body may constitute State aid. Should you have any doubts whether
any public assistance you may have received is de minimis aid, please clarify this with the agency or
department that provided such assistance.
In the event that you are a shareholder in one or more separate companies which have received a form of
State Aid, it is in your interest to check directly with the State Aid Monitoring Board to ensure correctness in
your declaration.
Declaration
I declare that a comprehensive amount of de minimis aid received to date during the current fiscal year and
the previous two fiscal years is as follows:
Fiscal Year 2016 Fiscal Year 2017 Fiscal Year 2018 TOTAL
€ € € €
1 Commission Regulation (EC) No. 1407/2013 of 18 December 2013 on the application of Articles 107 and 108 of
the Treaty on the Functioning of the European Union to de minimis aid
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A breakdown of the source, type and amount of all de minimis aid received as well as that applied for from any
State aid grantor, is presented below.
If no de minimis aid was received please mark as Nil.
Business Undertaking (Full Legal Name) VAT Registration Number
Name and Surname (BLOCK CAPITALS) Position in Establishment
Signature Date
Business Undertaking (Full Legal Name) VAT Registration Number
Name and Surname (BLOCK CAPITALS) Position in Establishment
Signature Date
Detailed information concerning applicable State aid under the de minimis rule.
(Note: Information should include both State aid received as well as applications for de minimis State aid still
pending approval by potential grantors)
Date Source/Grantor Type of State Aid Amount in €
E.g: 2/01/2017 Central Government Soft Loan Scheme 10,000
