European financing schemes under h2020 & cosme - Workshop on Juncker plan - Brussels 5.05.2015

Workshop Plan Juncker 5.05.2015
Financial instruments
of European Programmes
Rodolphe d’Udekem d’Acoz
Business & Finance Advisor @ IMPULSE.Brussels
Member of EU H2020 PC « Access to Risk Finance »

• European Programmes with financing schemes
• Focus on Cosme & H2020 financing schemes
Some basic remarks & parameters
Main financing schemes and characteristics
Access in Belgium / Brussels ?
Link with Juncker Plan / EFSI
• Conclusions & suggestions
Presentation Structure
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• COSME - DG (…) Entrepreneurship & SMEs
• Horizon 2020 - DG Research & Innovation
• ERDF structural Fund (EFRO/FEDER)
• ESF structural Fund (FSE/ESF)
• European Fund for Strategic Investments (EFSI)
• Other
European Programmes with financing schemes
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• Lots of different solutions
• From different EU programmes / DG
• Under different forms of funding
• For different purposes
• For different end users (only partial SMEs focus)
• Clear difficulty to get a complete view on what
exists, what is really available, for who and where !
NB: even with the improved portals
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• Specific topics : top-down approach
• No specific budget per countries / regions
• Often available through local intermediaries
• No real marketing from those intermediaries
• Leverage effect is key (but realistic ?)
• Application as single entity <> in consortium
• first in, first served <> multiple calls
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On the positive side
• Additionnal means made available
• More focus on smaller businesses
• Need for bottom up approach starts to materialise
• Trend towards coordination between programmes
• EU institutions understand concern on visibility of its
solutions eg. access to finance portal / calls portal
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Link with Juncker Plan
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EFG LGF
Description Equity Facility for Growth Loan Guarantee Facility
EU Program COSME COSME
at EU level through EIF through EIF
at local level
through local intermediaries : Venture
Capital Funds, Business Angels
through local intermediaries : Financial
institutions
Financing form Equity Loan
Details
- Equity (amounts in euro unknown)
- Follows GFI (CPI 2006-2013)
- For innovative SMEs in expansion and
growth stage
- Loans up to € 150 K (or >)
- Follows SMEG (CPI 2006-2013)
- To boost access to classic financing of SMEs
with perceived high risk or lack of sufficient
available guarantees
Availability status Open Open
Demand submission first come, first serve first come, first serve
SMEs V V
Midcorp V
Large Companies
Other
Consortium / /
Budget targeted € 71 Mio € 91 Mio
Investment targeted
€ 2.6-4 bio equity
to 362-560 companies
€ 14-22 bio loans
to 220-330 K companies
Budget &
Leverage effect
NB: partial data
EU Financing Schemes
DG Research + DG Enterprises
General Info
Direct access
or through
Intermediaries
Financing solution
at end user level
End user profile
(main target)

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InnovFin Large Projects
InnovFin MidCap Growth
Finance
InnovFin MidCap Guarantee InnovFin SME Guarantee
Description Loans Service for R&I
SMEs & Small Midcaps R&I
Loans Services
Loans Services
Loans Services
EU Program H2020 H2020 H2020 H2020
at EU level through EIB through EIB through EIB through EIF
at local level Direct access Direct access
through local intermediaries :
Financial institutions
Financial institutions
Financing form Loan Loan and quasi-equity Loan Loan
Details
- Loans from € 7,5 to € 300 Mio
- Follows RSSF (7th FP 2006-
2013)
- For R&DI projects /
infrstructures of innovative
companies (Midcaps & Large
companies), research
institutes, universities, etc
- New focus under H2020 : mid-
sized firms
- For R&DI projects of Midcaps
- New focus under H2020 : mid-
sized firms
- For R&DI projects of Midcaps
- Loans from € 25 K to 7,5 Mio
- Follows RSI 'pilot' (7th FP 2006-
2013)
- For R&DI projects of SMEs
Availability status Open Open Open Open
Demand submission first come, first serve first come, first serve first come, first serve first come, first serve
SMEs V
Midcorp V V V V
Large Companies V V V
Other
Universities, Research
institutes
Consortium / / / /
Budget targeted € 108 mio in 2014, 97 in 2015
Investment targeted
Budget &
Leverage effect
NB: partial data
€ 106 mio in 2014, 101 in 2015
General Info
Direct access
or through
Intermediaries
Financing solution
at end user level
End user profile
(main target)

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SME Instrument FTI Eurostars
Description SME Instrument Fast Track to Innovation Eurostars
EU Program H2020 H2020 H2020
at EU level Direct access Direct access Direct access
at local level Direct access Direct access Direct access
Financing form Grant Grant Grant
Details
(1) Phase 1 : Feasibility assessment : €
50 K
(2) Phase 2 : Industrialisation process
preparation : € 0,5-2,5 Mio
NB: up to 70% of eligible costs
- New instrument under H2020 : focus
on SMEs only, no consortium, direct
access
- For high-potential SMEs to develop
groundbreaking innovative ideas for
products, services or processes that are
ready to face global market
competition
- Must be TRL 6 (tech readiness level)
- Grants from € 1 to 3 Mio
NB: up to 70% of eligible costs
- New Pilot under H2020 : open to all
parties, no strict topical restriction (full
bottom-up approach) to promote close-
to-the-market innovation activities
- Aims to reduce the time from idea to
market and to increase the
participation in Horizon 2020 of
industry, SMEs and first-time industry
applicants
- Grants (amounts in euro uncertain :
up to a few hundred thousands)
- Recent pilot under 7th FP
- For R&D-performing SMEs which
develop innovative solution and look
for a quick access to international
market
Availability status Open (since Q2-2014) Open (since Q1-2015) Open
Demand submission Trimestrial calls (specific topics) Tri-annual calls Semestrial calls
SMEs V V V
Midcorp V V
Large Companies V
Other V
Consortium / Consortium Consortium
Budget targeted € 3 bio for 2014-2020 € 200 Mio € 1,4 bio (EU + member states)
Investment targeted € 14 bio
Budget &
Leverage effect
NB: partial data
General Info
Direct access
or through
Intermediaries
Financing solution
at end user level
End user profile
(main target)

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TTFF Crowdfunding Pilot Business Angels ICT Pilot
Description
Technology Transfer Finance Facility
Pilot
Crowdfunding Pilot Business Angels ICT Pilot
EU Program H2020 H2020 H2020
at EU level still to confirm still to confirm still to confirm
at local level
through local intermediaries : TT
Offices / TT Funds
Crowdfunding platforms
Business Angels Networks
Financing form Equity Loan / Equity Equity
Details
(1) Proof of concept phase before
spin off : up to € 100K
(2) after spin off : up to € 1,5 Mio
NB: if seed : up to € 500 K
- New Pilot under H2020
- Aims to facilitate transfer of R&DI
results with a high commercial
potential from public research and
academic institutions
- details unknown
- New Pilot under H2020 : to boost
financing of SMEs through
crowdfunding solutions
- details unknown
- New Pilot under H2020 : to boost
early stage financing of SMEs
through business angels
Availability status Not open yet Not open yet Not open yet
Demand submission first come, first serve first come, first serve first come, first serve
SMEs V V V
Midcorp V V V
Large Companies
Other
Consortium / / /
Budget targeted 2015 : € 62 Mio
Investment targeted through 60 TTO/TTF
Budget &
Leverage effect
NB: partial data
General Info
Direct access
or through
Intermediaries
Financing solution
at end user level
End user profile
(main target)

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SME initiative
Description SME initiative
EU Program Joint initiative EC & EIB Group
at EU level through EIF
at local level
through local intermediaries : Financial
institutions
Financing form Loan & Guarantees
Details
Aims to stimulate SME financing by
providing partial risk cover for SME loan
portfolios of originating financial
institutions. Alongside the European
Structural and Investment Funds (“ESIF”)
resources contributed by the Member
States, the SME Initiative is co-funded by
the European Union through COSME
and/or Horizon 2020 resources as well as
EIB Group resources.
- Member states may re-allocate
ressources (grants) from structural funds
Availability status Open in a limited nbr of countries
Demand submission first come, first serve (?)
SMEs V
Midcorp V
Large Companies V ?
Other
Consortium /
Budget targeted
Investment targeted
Benefits for Member States and Managing
Authorities
Compared to other financial instruments that
can be set up with ESIF funding, the SME
Initiative offers to Member States and Managing
Authorities the following advantages:
- No co-financing required from national or
regional resources;
- No need to conduct additional ex-ante
assessment, which has already been completed
at EU level by the European Commission and the
EIB in 2013;
- The European Commission and the EIB Group
have already adopted a ‘Model Funding
Agreement’, which is a ready-made template for
the Funding Agreement to be negotiated
between Member States and the EIF;
- Treatment of State Aid has already been
cleared by the European Commission;
- Possible combination of various resources,
including grant funding and resources from
national or promotional banks;
- Due to the contribution from different
stakeholders, the leverage on ESIF contributed
by Member States is expected to be high when
compared to other EU-level instruments funded
by ESIF;
- Strong EU support, in addition to EIB Group
mobilising own funds
General Info
Direct access
or through
Intermediaries
Financing solution
at end user level
End user profile
(main target)
Budget &
Leverage effect
NB: partial data

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• All those programmes are theoretically available in
Belgium … but is it really the case right now ?
in direct access : of course !
through commercial banks ? only partially !
through public financial institutions ? only partially !
through VC Funds : only partially !
through micro-credit institutions : yes !
Access in Belgium / Brussels?
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• Why such a limited use of those financing schemes ?
No real need for additional means ?
No real will to do more business or not enough good projects ?
Considered as burdensome ?
No enough efficient marketing at EU level ?
No capacity / no will to add additional private or public means to
mach the additionnal European means ?
• Why such a limited marketing from the financial
intermediaries on those additionnal financial means ?
NB: with the exception of Belfius to some extent
Access in Belgium / Brussels?
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Link with Plan Juncker / EFSI
Leverage effect
Funds matching
Complementarity
Combination of
instruments

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• More financial means are made available at EU level
• New solutions initiated for additional needs
• But still some efforts to be done at EU level regarding
an adequate marketing of financing schemes :
need for a full centralisation of info on all schemes
need for a standardised info structure for all schemes
need for a clearer vertical view on how each schemes
with intermediaries materialise from the top (EU) up to the
end user NB: only partially the case
Conclusions & suggestions
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• Some doubts too on the targeted leverage effects
• Also serious effort to be done at member states level:
develop & stimulate awareness on existing schemes
(internally & externally)
lobbying towards private financial intermediaries,
including binding obligations when / if necessary
clear instructions towards public financial intermediaries
make sufficient (public) financial means available to
match EU & private funds
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Conclusions & suggestions

• This presentation gives a synthetic overview on most of the financing instruments
available under the H2020 & Cosme programmes ; lots of other financing solutions
exist at other European levels
• The data disclosed on those financing instruments are based on publicly available
sources and for a limited part on the interpretation of the speaker
• The opinions expressed in the presentation are the sole responsibility of the speaker
and do not express Impulse Brussels, the Brussels Region or Belgian State opinion
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Disclaimer

• EU DG Research & Innovation : http://ec.europa.eu/research/index.cfm
• EU DG ‘Enterprise’ : http://ec.europa.eu/growth/index_en.htm
• EU H2020 programmes : https://ec.europa.eu/programmes/horizon2020/en/h2020-sections
• EU COSME programmes : http://ec.europa.eu/enterprise/initiatives/cosme/index_en.htm
• EIB-European Investment Bank : http://www.eib.org
• EIF-European Investment Fund : http://www.eif.org
• EU Access to Finance :
http://europa.eu/youreurope/business/funding-grants/access-to-finance/index_en.htm
• EASME-Executive Agency for Small and Medium-sized Entreprises :
http://ec.europa.eu/easme/en/executive-agency-small-and-medium-sized-enterprises-easme
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Some usefull links

Thank you for your attention !
Rodolphe d’Udekem d’Acoz
Business & Finance Advisor @ IMPULSE.Brussels
Member of EU H2020 PC « Access to Risk Finance »
rud@impulse.irisnet.be
www.impulse.brussels
www.brusselsnetwork.be
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European financing schemes under h2020 & cosme - Workshop on Juncker plan - Brussels 5.05.2015

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