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H2020 SME-I COSME EIF RSFF RSI: Finance spaghetti alphabet A dummies guide to finance acronym land in Europe and how to get it to work for you James Cogan PNO Consultants 2
PNO Consultants 25 years, 25 million per year, 250 people NL Group with FR, BE, IT, UK, DE and other affiliates Finance, Credit, loans, rebates, reliefs, grants, venture R&I design, strategy, platform development, funding, positioning This is my area, In Brussels office, james.cogan@pnoconsultants.com We raise over 1.5 billion for our clients each year and about 1% of FP7 funds Keep in touch with us on www.innovationplace.eu 3
LightJumps Funding for entrepreneurialism in photonics Bridging valley of death SME acceleration Cluster dynamics in six regions and four countries Entrepreneurhip, Investorship, Attracting & Accessing Finance Grants, Investments, Partners, Loans, Facilities Improved environment for startups and business expansion www.lightjumps.eu Project Id. 619463; 2 years (2014-2015) and 1.2M 4
Why public EU finance Help strengthen your EU innovation eco-system Can cover up to 100% of your R&D and pre-market costs personnel, overheads, expenses, equipment No strings attached you just need to show you spent it and how Typically paid in advance Rules, timelines and procedures stable & transparent or typically more so than national or regional programmes Business development 5
Finance acronym spaghetti Funding ingredients for innovation and business development FTI Angel VC FFF SME-I EIB H2020 RSI EIF RSFF InnovFin COSME 6
InnovFin Launched 20 June 2014 so still in early stages Financial instruments & advisory services for innovative firms EC, EIB, EIF EUR 24bn funded for x2 that in investment InnovFin Large Projects: loans & guarantees 25M - 300M direct to EIB InnovFin MidCap Growth: long senior, subord. or mezz. loans 7.5M to 25M for larger midcaps (<3000 employees), SMEs and small midcaps InnovFin MidCap Guarantee: loan guarantees for larger midcaps (<3000) through intermediaries InnovFin SME Guarantee: loan guarantees for SME (<500) through intermediaries InnovFin Advisory: to promoters of large R&I projects seeking investmentreadiness 7
SME-Instrument Chunks of 50k for investment readiness preparation Chunks of 1.5M -2.5M for business development Excellent «free» money Topic driven High competition Phase 1 Phase 2 Total/yr 743 243 Germany 158 51 France 120 39 UK 114 37 Italy 93 30 Spain 61 20 NL 35 12 Sweden 30 10 Poland 23 7 Belgium 22 7 Austria 18 6 Denmark 14 5 Greece 11 4 Finland 11 4 Portugal 10 3 Ireland 10 3 Rest 40 15 8
Horizon 2020 R&I Successor to FP7 Typically 1M - 6M for R&I Can be much more, i.e. Flagship investments Much more demand and business driven Exploitation and clear path to commercialisation Very attractive to entrepreneurs FP7 was aimed more at research directors We are seeing keen interest from business people Europe needs it to be business and results driven 9
Fast Track to Innovation (FTI) Open (you pick your topics) Business driven and near to market 3-5 legal entities and 3 member states Market update within 3 years of start 60% budget to industry partners or majority partners industry 100m each year for 2015, 2016 in continuous open call under LEIT with 3 cut-off dates. 1M- 2M per action. 70% funding. 6 month lead in time. Impact to be min 4/5. About 100 will be funded. Competition expected. Open Jan 6, 2015 with cutoffs on April 29, September 1 and December 1 Similar to LIFE in that it represents business project financing. For topic guidance look to H2020 priorities. Similar also to SME I. 10
LIFE Environment Resource Efficiency Demonstration & pilot projects involving full scale plant & equipment and not research oriented Contribute to implementation of EU environmental policy on Waste (reduce waste; maximise recycling and re-use; reduce incineration and landfill) and Resource Efficiency policy (green and circular economy, etc..) No requirements about number of countries or partners - can be one partner one country Typical project budget: 1-4 million Typical amount of funding from Commission: 0.5-2 million. Funding rate: 60% of the total eligible costs Earliest start date: 16 July 2015 and typical duration 2 5 years Must be carried out in Member States of EU External subcontractor assistance should remain below 35% Long-term sustainability of the investments must be guaranteed 11
COSME Parallel to H2020 and successor to CIP Does things to indirectly support entrepreneurialism creating more favourable conditions Direct access to finance 1.4B over period to 2020 Loan guarantees <150k Equity Facility for Growth (EFG): EIF invests in selected funds (intermediaries) that provide venture and mezzanine finance to SMEs, in particular those operating across borders Designated local intermediaries (financial and investment institutions) to find out how See COSME website to find intermediaries 12
RSFF Risk Sharing Finance Facility for R&I in 2007-2013 Just replaced by InnovFin Commission put 1B in it and EIB same Run by the EIB Middle to large size organisations with 15M+ projects could apply directly for corporate debt financing, project financing and mezzanine financing To access it you call them up and ask 13
Access to Risk Finance Work Programme 300m/year European Investment Bank loan & equity finance Like the Risk-Sharing Finance Facility (RSFF) and Risk-Sharing Instrument for SMEs (RSI) in 2007-2013 For SMEs, mid-caps and large Direct from European Investment Bank or through financial intermediaries 90m in 2015 for 2 novel funds Technology Transfer and Angel & Crowdfunding Still being designed so not known how they will be implemented 20m for studies & evaluations 9 different topics 5m for 2 CSAs with deadline 15.04.14 Tech Transfer and Boosting SME investment readiness Preparatory actions for the Tech Transfer and Angel & Crowd Funding See InnovFin 14
What are we doing to improve things? New EPIC workgroup on Venturing and Finance European Photonics Venture Forum Rome April 16 2015 Dummies guide in printed format EPIC led proposal for photonics venturing amoung best EU clusters Increased participation in EU photonics community to promote demand side industry viewpoint 15
EPIC Venture & Finance Workgroup Part of EPIC mission for its members Driving more funds to the sector Assemble network of investors and connect them with our members Market the sector to investor communities Run events that lead to deals (brokerage, venture forums, ) Promote the sector to the European Commission so they improve and grow support for it Promote the sector to the regions so they mirror EU support and develop own programmes Help our members prepare for investor readiness 16
European Photonics Venture Forum Rome, April 16 2015 LightJumps, EPIC, European and regional stakeholders Photonics venturing every two years different location Pitching sessions, workshops, one-to-one, leaders talks Small with EU and regional focus www.e-unlimited.com 17
Contact us James Cogan james.cogan@pnoconsultants.com Carlos Lee EPIC carlos.lee@epic-assoc.com www.lightjumps.eu www.pnoconsultants.com www.epic-assoc.com www.innovationplace.eu www.e-unlimited.com 18