Presentation on H2020 basics for start-ups engaged in FIWARE Accelerate.

1. EU public funding. The basics on H2020
@finodexproject #publicfunding #myFIWAREstory
Miguel García
miguelgarcia@zabala.es
Albert Alonso
aalonso@zabala.es
16/11/2015

2. Welcome
2

3. Index
3
H2020
Instruments
for funding
What is
funded?
SME
Instrument
and FTI
Q&A

4. 4
H2020

5. H2020. What is it?
5
Biggest investment by the EC on R&D and innovation
+€70b between 2014 and 2020

6. H2020. How is it structured?
6
Tackling Societal Challenges
• Health, demograhic change and wellbeing
• Food security, sustainable agriculture and
the bio-based economy
• Secure, clean and efficient energy
• Smart, green and integrated transport
• Climate action, resources efficiency and
raw materials
• Inclusive, innovative adn reflective
societies
• Secure societies
Creating Industrial Leadership
and Competitive Frameworks
• Leadership in enabling and industrial
technologies
• ICT
• Nanotech, Materials, manuf, and
Processing
• Biotechnology
• Space
• Access to risk finance
• Innovation in SMEs
Excellence in the Science Base
• Frontier research (ERC)
• Future and Emerging Technologies (FET)
• Skills and career development (Marie Curie)
• Research Infrastructures
Different areas and sub-areas

7. H2020. The work programmes I
7
Biannual document per sub-
area divided in topics/objectives
Actual Work Programmes are
here 2016-2017
http://goo.gl/OKiivf

8. H2020. The work programmes II
8
Topic. A concrete description of
what is required for a proposer
An open call is a subset of topics
with a deadline for submission.
Actual calls are available:
http://goo.gl/FGe0iX

9. H2020. The topics
9
Topics need to be addressed
properly by each proposal
A proposal is submitted in general
by a consortium of partners via
Participants Portal
http://goo.gl/HPcVyV

10. 10
Instruments for funding

11. Instruments for funding. Beneficiaries
11
Any kind of
organisation from the
EU or H2020
associated countries
You need to be registered
at the Participants Portal
and have a PIC (at least a
provisional one)
General rules (might be exceptions)
All organisations are
identified as profit
(SMEs, corporates…) or
non-profit (research
foundations, etc.)

12. Instruments for funding. The TRL levels
12
TRL level concept is needed to understand what a topic is
asking for.
Commercial End
Products
III. Pilot Production or
Demonstration Project
ManufacturingII. Applied Research
I. Disruptive
Research
Product Idea Prototype
First Test
Product

13. Instruments for funding. How much I’m getting then?
13
Profit
Non for profit
Every topic is aligned to a specific instrument for funding:
Innovation Action (IA), Research and Innovation Action (RIA)
or Coordination and Support Action (CSA)*
IA RIA CSA
TRL >6 TRL<5 NO TRL
70% 100% 100%
100% 100% 100%
*There are additional instruments but out of the purpose of this webinar specially tailored to SMEs
FUNDING RATE DEPENDING ON THE INSTRUMENT AND THE TYPE OF ORGANISATION

14. Instruments for funding. How are the proposals?
14
Cooperation. At least
3 organisations from
3 different eligible
countries*
General rules* to be aware of:
Applications submitted
in 1 or 2 phases
(depends on the topic)
*There are exceptions
Results : 4-5months
Starting: 8 months
after submission deadline
The submission is an
online form plus a
proposal (PDF). The
longer ones 60 pages

15. Instruments for funding. Who wins the open calls?
15
All the results are public and open and different analytics
can be launched thanks to the availability of H2020 results
(and earlier programmes) at the EU open data portal.
H2020 results
(last update: 24/06/2015)
https://goo.gl/ymTmFQ

16. 16
What is it funded?

17. What is funded?
17
Personnel costs
Subcontracting
The budget is divided in standard categories. Here we show
the main ones for simplicity
Other direct costs
Indirect costs
+
TOTAL costsxFunding Rate = TOTAL funding
What you invest
What you get

18. What is funded? Personnel costs
18
Salaries
Social security
Pensions
Etc.
+
Need to demonstrate the time that every employee
has devoted to the project and their hourly cost
Hours devoted in the
project are tracked via
timesheet or internal
reporting system
External hires can also be considered as personnel
if accomplishing some rules.

19. What is funded? Subcontracting
19
Invoices+
Keep track of invoices and payment slips
Recommended to follow the best value for offer
approach to select your subcontractor
Minor issues. Non-core
tasks (i.e. project website)

20. What is funded? Other direct costs
20
Travel & subsistence
Equipment
Other
+
Keep all the invoices related to the expenses
Related to the project only.
Equipment refers to
depreciation and
proportional use in the
project.

21. What is funded? Indirect costs
21
Personnel
Other direct costs
+
Flat rate for everyone (25%). Used to cover expenses
like phone, general supplies, etc. not directly linked to
one project
Direct costsx25% = Indirect costs

22. What is funded? An example
22
Personnel costs – €50,000
Subcontracting - €3,000
SME participating in a IA topic.
Other direct costs - €4,000
Indirect costs - €13,500
+
TOTAL costs
€70,500
xFunding Rate
70%
= TOTAL funding
€49,350

23. What is funded? Justification
23
No admin burden. You just
send the amounts spent,
not the supporting
documents
Justification of costs more
or less every 18 months
(reporting periods)
You can be audited up to
5 years after the project
ends.
BUT
The official time
framework is decided by
project
BUT
Justification of costs is
done after the expenditure
is done (actual numbers)
You are pre-financed up
to a third of the funding
BUT

24. 24
SME Instrument and
Fast Track to Innovation

25. Introduction: SME Instrument & FTI
25
All you guys have surpassed the research stage
SME Instrument and FTI help you to reach the market
SME INSTRUMENT

26. SME Instrument: Specific Objective
26
Support highly innovative SMEs with a clear
commercial ambition and a potential for high growth
and internationalisation
Flexibility:
- SMEs on their own or SME
consortia
- Broad topics (almost a bottom-up
approach)
- 4 cut-off dates per year until 2020

27. SME Instrument: Phases
27
Phase 1: 50.000 euros to carry out a feasibility study (6
months implementation)
10 pages proposal. Threshold 13/15
Examples of activites: risk assessment, market study,
user involvement, Intellectual Property (IP) management,
innovation strategy development, partner search,
feasibility of concept (this is the basis for the Phase 2
proposal).

28. SME Instrument: Phases
28
Phase 2: Demonstration projects funded at 70%.
Funding between 0,5 and 2,5 million euros (12-24
months implementation).
30 pages proposal. Threshold 12/15
Examples of funded activites: demonstration, testing,
prototyping, piloting, scaling-up, miniaturisation, design,
market replication

29. SME Instrument: Phases
29
Phase 3: No direct help. indirect support measures and
services as well as access to the financial facilities.
Building a community of successful European SMEs and
easing investment by VC and big companies.

30. SME Instrument: Project characteristics
30
- Demonstration of TRL 6 : Technology validated in a
operation environment
- Your product brings an added value compared to the
competence
- Willingness to grow and embrace the international
market
- Present a well-draft business plan (Phase 1) and a
detailed and refined business plan (Phase 2 & FTI)
- Demonstrate the implementation capacity of the
company / consortia with complementary profiles and
skills

31. SME Instrument: TIPS
31
- Overall funding rate: 7,9% for Phase 1 and Phase 2: For
Phase 2 proposals coming from Phase 1 it doubles.
- In the ESR you can identify the score criteria of the
evaluators. Try to address all the criteria.
- Show your accomplishments until now.
- Use the first page as a elevator pitch to engage the
evaluator.
- This is not a lottery. It is not about being lucky.
- However submitting and improving the proposal
works. Almost 44% of the beneficiaries of last cut-off
date were re-submitters.

32. SME Instrument: Success Stories
32
CYSNERGY: innovative system able to reduce the
electricity consumption in industries in a
percentage up to 40%.
Phase 1 funded in 18/06/2014 and Phase 2 funded in
17/09/2015 (submitted twice Phase 2).

33. SME Instrument: Success Stories
33
HDIV, a technology that
follows a security by design
approach, generating self-
protected web applications
Company applying directly to
Phase 2 (twice,17/12/2014 and
17/06/2015)
They were funded under the
security topic although the
first idea was to submit in ICT
Phase 1 beneficiaries
Phase 2 beneficiaries

34. FTI: Characteristics
34
3-5 Entities with strong presence of Industry (for
profit entities) including SMEs
Fully bottom-up approach
Close to market activities
1-3 Million Euros funding (70% budget)
Obligation to reach the market in 3 years after
beginning the project
3 cut-off dates per year
Trial during 2015-2016 to evaluate its performance

35. FTI: TIPS
35
Include the whole value chain of the product /
service: Supplier – Manufacturer – End customer
Describe the extended and refined version of the
business plan
Be concise. You have 30 pages
ESR with detailed comments about the project. Use it
to improve your proposal.

36. FTI: Statistics
36
Information of the first cut-off date:
269 proposals (231 in the 2nd, -14%)
48 (18%)proposals above threshold (12)
16 (6%) proposals funded
12,92 cut-off date for funding

37. FTI: Success Stories
37
Link to the beneficiaries of FTI
Traditional sectors seem more successful: energy,
transport, manufacturing
ICT sector has shown lower funding rate
The average composition of funding consortia does
not show significant differences with the rest of
applicants

38. 38
Questions & Answers

39. Now it’s your turn to ask!
39

40. And last but not least…
40
The important thing is
growing your business,
the funding is just an
incentive!

41. Thanks!
info@finodex-project.eu
www.finodex-project.eu
finodex
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This project is co-funded by the European Union