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My name is Rune Andreasen, and I am here to very quickly talk to you about an innovative new way for you to get public grants via your succesfull crowdfunding campaign.
In the market development fund, which is run by the danish business authority, we fund late-stage-development – i.e. very close to market activities. That is testing your functional prototype with potential customers and end-users to adjust your product to fit the market needs.
We fund all kinds of products within all sectors. We have a very wide range because the fund’s award criteria primarily focus on a high level of innovation – a newsworthyness and a great market potential.
However a great market potential is easier to prove and validate for b2b products. With those kinds of products, an applicant can show us a market interest by having a large enterprise test their product. B2C-products on the other hand can’t be validated in this way. If you have made a new wearable, you can’t have a few friends test it, and then claim that your product has market interest. This means, we have a deficit of b2c products applying and getting grants from the Market Development Fund.
So how do you prove and validate a market interest in your consumer product? Isn’t that excactly one of the things a crowdfunding campaign does?
So how do we plan on combining crowdfunding with grants from the Market Development Fund to get more innovative products ready to market?
We want to let you apply for funding and then prove to us your market potential on a reward-based crowdfunding platform. You choose the platform, that best fit your needs, and if you are succesfull in raising the needed capital from the crowd, the Market Development Fund will top you off within a certain frame.
This combines the best of to worlds to benefit you: You establish your customer base, you gain world wide attention for your product, and you cover the cost of your first production + all the other benefits you cet from a reward-based crowdfunding platform. At the same time, you get money from the market development fund to cover the cost of the test and adjustment of your product to fit the demands and the needs of your customers.
This is what a project funded by the market development fund normally looks like. Explain…. And this is also what a project will look like in this matchfunding with crowdfunding initiative + the first production, which is funded by the crowd.
This is how we will match. - which is actually topping off.
And in the case of the market development fund, we talk projects, because this is a grant to cover certain activities. If your project costs between half a million and a million, you will have to raise at least 250.000 kr. on a crowdfunding platform. The fund will top you off to reach the total cost of your project.
If your project costs more than a million kr., you will have to raise 500.000 kr. and the Fund will top you off til about 1,5 mio. kr. depending on the exchange rate of the Euro.
Furthermore, we are particularly proud of being able to award a lump sum of 39.000 kr. for preparing your campaign with the help of a certified crowdfunding consultant. The consultants are certified by the Danish Crowdfunding Association.
We have designed this part of the initiative in collaboration with the Danish Crowdfunding Association because, we are aware, that crowdfunding is still a new thing in Denmark, and we don’t want to set you up to fail. We know it is a demanding proces to run a succesfuld crowdfunding campaign, at we want to make sure, that you are as prepared as possible for the challenges ahead.
And just to give you some examples of how the matchfunding will work.
1) Your project costs 800.000 kr. You have to raise 250.000 kr. on a crowdfunding platform. The rest – 550.000 kr. will be covered by the Market Development Fund.
2) Your project costs 1.200.000 kr. You have to raise 500.000 kr. on a crowdfunding platform. The rest – 700.000 kr. will be covered by the Market Development Fund.
3) Your project costs 2.100.000 kr. You have to raise 500.000 kr. on a crowdfunding platform. The Market Development Fund will top up with 1.461.000 kr. The rest – 139.000 kr. you have to finanse elsewhere. Either by the crowd you by your own work hours.
This was a short introduction to our new crowdfunding initiative. We are very proud of it.
Application deadline will be the 19th of march at 12 o’clock
Follow us on twitter for news an tips about projects achieving grants.
And go to our website to learn more and for the application guidelines.
MMF and crowdfunding
Market Development Fund
Rune Scharff Andreasen
Consumer products with big market potentials
•How to prove and validate market interest
in consumer products?
Matchfunding with crowdfunding
Benefits for you:
Establish customer base
Attention for your product
Cover cost of first production
Test and adjustment of product
The activities covered by the fund
Product readyA potential customer tests the product
The product is adjusted to fit the market needs for sale
This is how we match the crowd
Budget for overall project 500.000 – 1.000.000 DKK > 1.000.000 DKK
Crowdfunding Min. 250.000 DKK Min. 500.000 DKK
Market Development Fund 250.000 – 750.000 DKK 500.000 – 1.461.000 DKK
• 39.000 DKK in lump sum for preparing
your campaign with a certified consultant
Overall project budget 800.000 DKK 1.200.000 DKK 2.100.000 DKK
Crowdfunding 250.000 DKK 500.000 DKK 500.000 DKK
Market Development Fund 550.000 DKK 700.000 DKK 1.461.000 DKK
Other - - 139.000 DKK
19th of March 12:00
•Follow us @markedsmodning and
LinkedIn for news and tips about projects