1. EUROPEAN HUB EU Funds for SMEs and Startups Innovation and Investment

2. European Hub European Hub is a company of experts that have worked in the EU Institutions. We are specialised in different sectors and we have different expertise. Our headquarters are in Pavia (Italy) and Brussels. Carlo Peano, Co-founder and Executive Partner of European Hub Who we are

3. SME EU Definition Company category Staff headcountTurnover or Balance sheet total Medium-sized< 250≤ € 50 m≤ € 43 m Small< 50≤ € 10 m Micro< 10≤ € 2 m

4. European Funds The European Commission (EC) has medium- and long-term objectives The EC develops working programmes to reach them Why?

5. European Funds Reaching the objective by funding projects in two ways: o Directly managed funds o Indirectly managed funds Grants vs Loans o Grant is a sum of money given by a government or other organization for a particular purpose o Loan is a sum of money that is expected to be paid back with interest How?

6. Funds Horizon 2020 SME Instrument Funds managed by European Investment Bank Eurostars Interesting funds

7. Horizon 2020 What is: Programme for the EU Innovation, Research and Development Objective: keeping the EU research at an excellent level Type of fund: Grant (70% - 100%) Budget: 77 billions euro Sectors: new technologies frontiers and product innovation Scope: increase the competitiveness of the research and entrepreneurship in the EU Beneficiaries: companies, organisations, public bodies Partnerships: usually mandatory (it depends from the subprogramme) Definition

8. Horizon 2020 Research and Innovation Actions (RIA) o Basic research, applied research, technology development, integration and testing evaluation on a small scale prototype in a laboratory or simulated environment o Grant (100%) Innovation actions (IA) o Prototyping, testing, demonstration, piloting, large- scale product validation and market replication o Grant (70-100%) Main Type of Actions

9. SME Instrument What is: Horizon 2020 sub-programme for Small- and Medium-Sized Enterprises (SMEs) Type of fund: Grant (70% - 100%) Objective: It aims to bring an innovation idea (product, process, service etc.) to industrial readiness and maturity for market introduction Sectors: 13 different sectors Scope: increase the competitiveness of the EU SMEs Beneficiaries: SMEs Partnership: not mandatory Definition

10. SME Instrument Phase 1: o Concept & Feasibility Assessment Phase 2: o Demonstration Market Replication R&D Phase 3: o Commercialisation 3 Phases

11. SME Instrument Provides funds to explore and assess: o the technical and technological feasibility o the commercial potential/economic viability of a breakthrough idea Focused on activities o risk assessment o market study o user involvement o Intellectual Property management o innovation strategy development o partner search o feasibility of concept Phase 1 – Part I

12. SME Instrument Only one project per SME Grant: Lump sum of 50.000,00 euro (70%) Duration: 6 months 4 deadline per year Phase 1 – Part II

13. SME Instrument Developing a technology for market introduction Focused on innovation activities o demonstration, o testing, o prototyping, o piloting, o scaling-up, o miniaturisation, o design, o market replication Phase 2 – Part I

14. SME Instrument Only one project per SME Grant: 70% (100% for healthcare biotechnology) Timing: 12 – 24 months 0,5-2,5 M (1-5 M for healthcare biotechnology) per project 4 deadline per year Phase 2 – Part II

15. SME Instruments Disruptive Innovation Advanced materials, manufacturing and processing technologies Biotechnology Space Healthcare biotechnology Health Agriculture Blue growth Low carbon and energy efficiency Transport and mobility Environment Inclusive technology Security Sectors

16. SME Instrument Promotes the implementation and successful commercialisation of innovative solutions Facilitates access to private capital and first customers as well as offering support services No direct funds SMEs can benefit from indirect support measures Phase 3

17. European Investment Bank - Loans What is: the European Investment Bank is the European Union's non-profit long-term lending institution Type of Fund: direct or indirect loans (it depends on the amount requested) Repayment: normally on a semi-annual or annual basis. Grace periods for capital repayment may be granted for a project’s construction phase. Objective: supporting sustainable growth and jobs Sectors: 11 sectors Partnership: not mandatory Definition

18. European Investment Bank - Loans Agriculture Digital Economy Education and training Energy Forestry Health and Life Science Regional Development Trans-European Network Transport Urban Agenda Water and Wastewater Management Sectors

19. European Investment Bank - Loan Directly Managed: o Proposals higher than 25 millions euro Indirectly Managed: lower than 25 millions o National intermediaries o List of national intermediaries in BelgiumBelgium Direct Loans vs Indirect Loans

20. Eurostars What is: fund managed by Eureka Network, it’s a joint programme supporting R&D performing SMEs Objective: supporting innovation of product, process or service and international innovative projects led by R&D-performing SMEs Type of fund: Grant/Loan (it follow national criteria) Sectors: different sectors Beneficiaries: R&D-performing SMEs Partnership: mandatory (Minimum 3 partners) Definition

21. Eurostars SMEs with a headcount of 100 FTE employees or fewer must: o have at least 5.0 FTEs dedicated to R&D activities o or dedicate at least 10.00% of their FTE to R&D activities o or dedicate at least 10.00% of their turnover to R&D activities SMEs with a headcount of more than 100 FTE employees: o have at least 10.0 FTEs dedicated to R&D activities o or dedicate at least 10.00% of their FTE to R&D activities o or dedicate at least 10.00% of their turnover to R&D activities R&D performing SME

22. Conclusions European Commission funds companies with a sustainable balance of sheet o Startups can have troubles to be funded Timing o SME Instrument funding process is long and has a low success rate. Business plan and market research o Companies often under-estimate them o The lack of concrete data is a common mistake Problems

23. Conclusions The solution depends on The structure o SME ? o Start-up ? o R&D-performing SME ? The business model and business plan o Project will be implemented in few months ? o Project can be implemented in one or two years ? Best solution – Variables

24. Conclusions SME o SME Instrument if the company has time o EIB if the company needs to do start the project in few months Start-up o EIB first and SME Instrument after R&D-performing SME o Eurostars o EIB o SME Instrument Best solution

25. Questions

26. Thank you! Carlo Peano Executive Partner carlo.peano@european-hub.com +32-(0)483-698.390