Ivan FILUS BIC Bratislava Enterprise Europe Network SME NCP / Access2Finance NCP

SME Instrument Experiences from the first calls

Results, recommendations, main problems and feedback from Slovak SMEs

SME Instrument Experiences from the first calls

Results, recommendations, main problems and feedback from Slovak SMEs

SME Instrument vs. SBIR

Only for-profit SMEs established in the EU or associated countries may apply for funding and support

Single company support possible

70% funding (exceptions possible)

No obligation for applicants to sequentially cover all three phases

Innovative SMEs with a potential to develop, grow and have an international impact

Focused on established SMEs with high growth potential

Clear European dimension

SME instrument Your Highway to deliver Innovation to the Market

PHASE 3: Commercialisation

~ 2% budget (Phase 3 + coaching scheme/Phase 1&2)

Not designed to be a sequential phase, Phase 3 will also support activities in parallel to Phase 1 and Phase 2 participation

Main issues to be implemented:

Promote instrument as quality label for successful projects

Facilitate access to private finance

Support via networking, training, mentoring, information addressing i.e. IP management, knowledge sharing, dissemination

SME window in the EU financial facilities (debt facility and equity facility)

Possible connection to public procurement activities

SME Instrument: Guiding principles

• It is mainly about the innovative business

– financing a business growth through innovation

– new product, technology, service = driving force

• SMEI is a complex process

– consists of three phases

• open access (but not completely)

– possibility of presenting innovative ideas (BUT in a more or less pre-defined areas)

Step 0

• before you start writing

• internal / external evaluation

– idea / concept

– business idea

– suitability of the instrument (SMEI) • Financing possibilities

• Time frame

• Administrative restrictions

Submission of the proposal -

recommendations

• Register in advance - PIC/LEAR

• Do not wait for the cut-off date

• Read the documents / ask for assistance

• ATTENTION! – you cannot re-write the submitted proposal

– Different to the other H2020 areas

SELF

EVALUATION

• SMEI specific document

• Evaluate your proposal by yourself

• Criteria

• Evaluation

http://ec.europa.eu/research/participants/data/ref/h2020/call_ptef/ef/h2020-call-ef-sme_en.pdf

Online web briefing for evaluators

• Content:

1. Introduction

2. SME Instrument overview

3. Evaluation process

4. The role of independent experts

5. The evaluation in practice

• http://goo.gl/wXP29a

– (YouTube)

Bernd Reichert, head of Horizon 2020 SME unit, EASME

Bernd Reichert, head of Horizon 2020 SME unit, EASME

IMPACT = „initial business plan“

• Recommendations:

– Study the business plan structure • you will need to prepare it (i.a. in the frame of the Phase 2)

• there is a lot of info on Google ...

– imagine the EC as investor – prepare your proposal: • clearly and logically

• with relevant data

• believable

• interesting

SMEI (Phase 1) = elevator pitch (?)

Source: www.americanexpress.com/us/small-business/openforum

1. Find a good hook – Attract the investor/evaluator

2. What's your mission? – Who are you and what you are going to do

3. Tell them what makes you different from your competitors

4. Back it all up with real data points – Few things impress more than hard data

5. Keep it all under 60 seconds – or 10 pages :)

Final recommendations

• SMEI is a tool for specific (small) group of SMEs (Champions League)

– Think about the alternatives (CP, Eurostars, FTI, ESIF, FI)

• Check your SME status, prepare all necessary registrations (PIC, LEAR)

• Make internal evaluation: Does the SMEI fit to your long term strategy? Where do you see your company in 5 years?

• Is your idea worth the investment of 1-2 M€? Would you invest your/other resources? How shall you co-finance the project?

Final recommendations

• Get familiar to the Participant Portal

• Schedule the writing against the evaluation criteria and answer ALL the questions in the template

– clearly and concisely

– attract with the abstract

• Think about IPR before launching the project

• Use the assistance available

Final recommendations

• Structure the text – tables, charts, bullet points, schemes

• You only have 10 pages ! – write clearly, factually

– answer ALL questions / sub-questions

– delete all hints (description)

• The FORM matters! Prepare your proposal as a nice presentation – You are going to sell you idea

– For investor

– Not as technical document – but rather understandable for non-technicians (investors, business developers, ...)

RESULTS of the FIRST CALLS

Results of the 1st call

• 2666 submitted proposals

– 94% single partner proposals

• only 317 (12%) passed the threshold

• 155 champions starting the SMEI Phase 1

A lot of low-quality proposals !

Number of submitted proposals

(by countries)

Slovakia: 38 projects

CZ: 21 projects

Results by theme

Topic

Proposals Max. project

fundable

Max.

success

rate

ICT 37: Open Disruptive Innovation Scheme 885 30 3.4%

NMP 25: Accelerating the uptake of nanotechnologies, advanced materials or

advanced manufacturing and processing technologies by SMEs

305 14 4.6%

BIOTECH 5: SME boosting biotechnology-based industrial processes driving

competitiveness and sustainability

73 2 2.7%

LEIT Space-SME 128 5 3.9%

PHC12 :Clinical research for the validation of biomarkers and/or diagnostic

medical devices

213 44 20.7%

SFS8: Resource-efficient eco-innovative food production and processing

BG12: Supporting SMEs efforts for the development - deployment and market

replication of innovative solutions for blue growth

129

49

6

2

4.6%

4.1%

SIE 1: Stimulating the innovation potential of SMEs for a low carbon and

efficient energy system

372 22 5.9%

IT.1: Small business innovation research for Transport 229 24 10.5%

SC-5-20: Boosting the potential of small businesses for eco-innovation and a

sustainable supply of raw materials

241 11 4.6%

DRS17-Protection of urban soft targets and urban critical infrastructures 42 4 9.5%

Who are the evaluators?

Total nber Experts Share Business 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 advice / Intellectual Property Rights 15 2,9% Other 9 1,7% Risk finance (Business Angel Investor / Venture Capital) 31 6,0%

Total 521 * 100,0%

* 434 (83%) of the experts was involved in evaluation

51 (12%) from universities, 383 (88%) from business environment, 34% women

Main findings (EC)

1. Too much focused on the project and not enough on the business opportunity;

2. Not convincing when describing the company (you have to explain why your company will succeed and not your competitor);

3. Not providing enough information on competing solutions;

4. Having a too low level of innovation, planning to develop a product that already exists on the market;

5. Proposing just an idea without any concept for its commercialisation;

6. Just trying their luck (the SME Instrument is not a lottery!).

Further findings / aspects for improvement

• 49% of applications above threshold will be funded every second "good" proposal is funded

• 105 out of 155 (68%) of the SMEs reportedly are newcomers to Framework Programmes

• Submission process not yet optimal (85% of the submitted proposals arrived within the last 48h prior to the cut-off date).

• Average evaluation time per proposal 1:20 hrs • Level of feedback from evaluation to applicants will be

improved, yet speed (short time-to-grant) will remain the most important preoccupation.

• Pool of evaluators will be broadened from current 521 to about 1000 (more business, financial profiles!)

Results by countries

Funded projects / SK=0, CZ=0

SK Summary scores

0

1

2

3

4

5

6

7

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Submitted proposals (Call 1&2)

Who are the SMEI beneficiaries?

Size of SMEs

Age of SMEs

Turnover of SMEs

Evaluators

Evaluators

Results of Slovakia

SK summary results

• 38 proposals submitted

• 0 projects approved

Above threshold overall 0

Below threshold overall 5

Below threshold 2 1

Below multiple thresholds 32

SK Results: Areas (submitted proposals)

0

2

4

6

8

10

12

14

BIOTEC Critical Infr. ICT Transport NMP Eco/Raw Food Energy Space

SK Results: Evaluation (submitted

proposals)

0

5

7

21

5

0 5 10 15 20 25

13-15

12-13

10-12

5-10

0-5

87%

SK Results: Regions (submitted proposals)

0

2

4

6

8

10

12

14

16

BA TT TN NR ZA BB PO KE

Quick survey of SMEI

• November 2014

• 20+ Slovak SMEs involved in first SMEI call

• 8 SMEs provided feedback

– Positives

– Negatives

Positive aspects

• possibility of funding for the individual company – no need of consortia

• higher frequency of deadlines / cut-off dates – more frequent than RIA

• wide thematic scope of the SMEI calls

• adequate amount of funding – for small SMEs

• low bureaucratic burden – in proposal preparation (forms, 10 pages) / possible

reporting

Positive aspects

• rather quick feedback in Phase 1 evaluation

• funding of the innovation in SMEs

• funding of significant part of the innovation cycle

– feas. studies > R&D > demo > tests

• access to the innovation/business mentors

– provided a good number of high profile experts will be subscribed in the coaching database

Negative aspects

• MOST IMPORTANT: Feedback (ESR) on Phase 1 proposal

– very few information provided

– no comments for possible improvement

– very subjective (subjectivity of the judging process is highly influencing the selection process )

Negative aspects

• TRL – unclear definition (e.g. transition between laboratory and operational environment)

• strong correlation between countries of beneficiaries and evaluators

• missing notification about ESR

• page limit (10 pages)

Contact

Ivan FILUS

BIC Bratislava Enterprise Europe Network

t: 02/ 5441 7515, 5441 7606 e: filus@bic.sk

Zochova 5 811 03 Bratislava

www.BIC.sk www.EEN.sk h2020.CVTISR.sk