Sme instrument for distribution

© Nikolaos Floratos, Fundingexpert.academy
Horizon 2020 SME Instrument
Workbook
www.keyinnovations.co.uk

Copyright © Nikolaos Floratos,
www.fundingexpert.academy
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Who is Nikolaos Floratos
• Founder of Funding Expert Academy programmes that
masters individuals in EU funding programmes and
exploits the most successful and largest no. of
proposal developers across Europe
• Active in european funding industry since 1997 (19+
years)
• EC expert/evaluator since 2003 (13+ years)
• Author of the ebook “Learn from the Horizon 2020
champions” downloadable from
www.NikolaosFloratos.com
• Trained and coached hundreds of consultants and
organisations on exploiting successfully EU funds
• The only professional in the whole Europe with 40+
recommendations in his linkedin profile
(www.linkedin.com/in/floratos) as expert in european
funds, trainer/coach
3

Essentials for SME instrument
Basic Concepts

Funding to support only and directly innovative SMEs
Programme Name:
Innovation for SMEs – SME Instrument
Main Areas: The aim of the SME Instrument is to fill the
gaps in funding for the early stages, Research and
Innovation and accelerating the exploitation of
innovation.
Available budget: €2,8 billion
More info: https://ec.europa.eu/digital-single-
market/en/sme-instrument-0
5

European Funding for enterprises
especialy Small –Medium
Programme Name: COSME
Main Beneficiaries: SMEs,
Enterprises
Main Areas: Actions that advance at
european level the Innovation and
competitiveness of SMEs
Main Participants: SMEs
Available budget: €2.22 billion
More info:
https://ec.europa.eu/easme/en/cos
me
Programme Name: EUROSTARS
Main Beneficiaries: SMEs,
consumers, enterprises, industry
Main Areas: Actions that advance at
european level the Innovation and
competitiveness of SMEs
Main Participants: R&D performing
(highly innovative) SMEs that create
impact to the identified beneficiaries
Available budget: €1.2 billion
More info: https://www.eurostars-
eureka.eu/
6

Budget for SMEs
COSME
Eurostars
SME
Instrument
BUDGET mainly for SMEs
7
€6,22 billion

SME instrument
Societal
Challenges
Leadership in
Emerging and
Innovative
Technologies
Horizon 2020
2,8 billion €
2014-2020
€168 Million for
administration
2,63 billion €
funding for
Forefront
know how
Growth
Better life for
EU citizens
6%
94%
€376 Million
funding
Very
conservative
Assumptions
Proposal
Development cost
around 3% of
requested funding
7% Success rate
(~1/14 )
Assumeyearly
Proposal
Development cost
around 3% of
requested funding
93% failed rate
(~13/14)
~11 million € spent
annually for successful
proposals of total budget
376 million €
€154 million spent annually
for failed proposals
In SME Instrument
WHY YOU CANNOT AFFORD TO
FAIL in SME instrument!
8

Conclusion 1
Amount(€) organisations spent in total every year
for developing and participating in proposals that
fail to receive funding in SME instrument:
€154 Μillion
Big need for effective training, coaching and support!
9

SME instrument
Country
…
Country
2
Country
1
1,2 billion €
2014-2020
€72 Million for
administration
1,13 billion €
funding for
Forefront
know how
Growth
Better life for
EU citizens
6%
94%
€161 Million
funding
Very
conservative
Assumptions
Proposal
Development cost
around 3% of
requested funding
25% Success rate
(~1/4 )
Assumeyearly
Proposal
Development cost
around 3% of
requested funding
75% failed rate
(~3/4)
~4,83 million € spent
annually for successful
proposals of total budget
161 million €
€14,5 million spent annually
for failed proposals
In Eurostars programme10

Conclusion 2
SMEs should focus also in other related funding
opportunities for supporting the deployment of
their innovative products such as Eurostars that
success rate is quite attractive
25% success
rate*
*Source: Executive Agency for SMEs
https://ec.europa.eu/easme/en/small-companies-applying-eurostars-grants-have-25-
success-rate
11

Fundamentals in funding for SMEs
Why European Funding (its purpose) – Three Priorities
• Create forefront (new and useful) knowledge in
Europe (e.g. see all three pillars in Horizon 2020)
• Advance Growth (e.g. see 2nd pillar in Horizon
2020:LEIT – Leadership in Emerging and Industrial
Technologies)
• Improve Quality of life of European Citizens (e.g.
see 3rd Pillar in Horizon 2020 – Societal Challenges)
12

Valley of Death
Valley of Death
Projects for SMEs
EC Funding
~70%
1. Fore-front knowledge
2. Growth & Competitiveness
3. Quality of life of EU Citizens
New requirement for all European
programmes including SME instrument
for the period 2014-2020. A convincing
Dissemination and Exploitation Strategy
is required within the proposal
application
13

Follow-up activity
• Identify any funded project for SMEs that you or
colleagues of yours have participated
• Has it fallen or not into the Valley of Death?
• In any case, what do you think was the reason for
that?

7 Myths in SME instrument
• Myth 1: It is almost impossible for an SME from small countries to be
successful in SME instrument
• Myth 2: It is extremely difficult to convince evaluators for the high quality
of our SME proposal
• Myth 3: A project/product innovative at a national level is suitable for
SME instrument
• Myth 4: Being successful in SME instrument requires a lot of time and
resources
• Myth 5: Participating in a european project for SMEs such as SME
instrument, Eurostars, COSME may jeopardise the ownership of my
expected innovations
• Myth 6: Perfect command of English is needed for a great SME
instrument proposal
• Myth 7: Submitting and implementing an SME instrument project is a
complicated process
15

How can you be successful in SME
instrument
Funding Expert Transformation Process
FETPTM Formula

SME Funding Expert Transformation
Process
• Understand how
SME instrument
mechanism works
• Identify the most
attractive funding
topics for your
needs
Step
1
•Follow rituals
religiously
•Master all
actions from
initiating an
attractive idea
to successful
submission
Step
2
•Prepare great
proposal
•Master how to
write a
convincing
proposal
Step
3
5 Fingers’
Technique
I.C.R.E.A.T.E.S.
system
C.R.I.T.E.R.I.A.
Formula
Daily Habits
B.U.N.D.L.E.R.
Habits
From Struggle To Success
17

The 7 Habits of SME Funding
Champions
B.U.N.D.L.E.R.TM Formula

B. Build to Last!
19

B. Build to Last!
© FundingExpert.Academy
European funded projects for SMEs shall
support the
• mission of your organisation
• vision of your organisation
• Creation of forefront know-how
• Job growth and competitiveness
• Increase the quality of life of EU
citizens
• i.e. don’t fall in the “Valley of Death”
20

U. Upset the Status Quo!
21

U. Upset the Status Quo!
• You know the SMART objectives
• Specific
• Measurable
• Achievable /Attainable
• Realistic /Relevant
• Time (in)
• They are not complete, since SMART
objectives are not Innovative!
• Think outside the box and be innovative
22

N. Never Eat Alone!
23

N. Never Eat Alone!
Three meals in a weekday
• 2 meals with family, friends, old
colleagues
• 1 meal with new colleagues,
partners, clients, funders,
experts, mentors, project
managers, etc
• i.e. 260 meals in a year for
sharing ideas, connecting, getting
feedback, establishing
partnerships
• What about coffee?
• Attend infoday events
Drop the rule “Ask and Shall Receive”
and adopt the motto “Give and Shall
Receive”
24

D. Don’t Delay it, Delegate it!
25

D. Don’t Delay it,
Delegate it!
Winning SME instrument Proposals
require teams with a
1. Proposal Leader
2. Proposal Writing Team (in-house
team incl. an Expert in the
proposal topic
3. Secretary
4. Evaluator
26

Delegate it!
A Proposal Leader is responsible for
• Coordinating the proposal writing
process
• “Eating” with experts, funders,
potential supporters and getting
feedback
• Engaging competent supporters
• Coordinating the allocation of budget
and resources
• Cooperating with the secretary for the
administrative and submission
process
• Assessing the quality of proposal
sections and contributions and taking
proper actions for further
improvements
• Cooperating with the evaluator for
the proposal review
27

Delegate it!
The Proposal Writing Team is responsible for
writing the proposal sections based on the
C.R.I.T.E.R.I.A. formula/Evaluation Criteria
• Consortium
• Relevance of the Project
• Innovation
• Transeuropean Dimension
• Economic
• Reputation
• Impact
• Approach
Tip no. 1: Delegate different sections to
individuals according to their expertise and
competencies
28

Delegate it!
“Secretary” is responsible for
1. Collecting all administrative
documents from partners if
applicable such as agreements,
profiles, CVs, Letters of support,
NDAs, admin forms including PIC,
etc
2. Submitting the whole application
in coordination with the proposal
leader
3. Ensures that the focus of the other
members is in writing an excellent
proposal
29

Delegate it!
“Evaluator” responsible for assessing
1. the proposal idea
2. The proposal summary and
3. The proposal final draft
Feedback given should always be
critical and include suggestions for
further improvement. There is no
proposal that is perfect
30

L. Learn that Good is the
Enemy of Great
Voltaire
Enlightenment Writer
31

L. Learn that Good is the Enemy of
Great 1. Build a profound proposal summary
that engages
2. Network, network, network.
3. Realise that everything counts but
first impression counts more
4. Prepare an impressive introduction
5. Build the proposal according to the
selection award criteria
6. Engage an Evaluator as external
reviewer
7. Don’t make compromises!
32

L. Learn that Good is the Enemy of
Great Great proposals have very few
compromises, i.e.
• No compromises in the partnership
• No compromises in the quality of each
proposal section
• No compromises by avoiding
preparing a well structured summary
• No compromises in getting feedback
by experts, funders, partners, clients
• …
33

E. Endorse a Sharpen
Axe!
34

Axe!
Once upon a time, a very strong woodcutter
asked for a job in a timber merchant and he got
it. The pay was really good and so was the work
condition. For those reasons, the woodcutter was
determined to do his best.
His boss gave him an axe and showed him the
area where he supposed to work.
The first day, the woodcutter brought 18 trees.
“Congratulations,” the boss said. “Go on that
way!”
Very motivated by the boss words, the
woodcutter tried harder the next day, but he
could only bring 15 trees. The third day he tried
even harder, but he could only bring 10 trees. Day
after day he was bringing less and less trees.
“I must be losing my strength”, the woodcutter
thought. He went to the boss and apologized,
saying that he could not understand what was
going on.
“When was the last time you sharpened your
axe?” the boss asked.
“Sharpen? I had no time to sharpen my axe. I
have been very busy trying to cut trees…”
35

Axe!
Thus, never say for example that I
am a proposal writer and
• I don’t do networking with
funders and experts or
• I don’t connect with potential
partners supporters or
• I don’t need to write an
impressive summary or
• I don’t need to delegate
• …
36

R. Recognise Mistakes
as Learning Opportunities!
B.U.N.D.L.E.R.
37

R. Recognise Mistakes
as Learning Opportunities!
We are learning from our
mistakes, therefore,
• Learn from your mistakes
but most importantly
• Learn from the mistakes
of others
B.U.N.D.L.E.R.
38

Follow up Activity
At the end of each day self-check the status of your
B.U.N.D.L.E.R. habits, i.e. Ask yourself the following and if
you are not satisfied with your answers, work harder until it
becomes a habit!
 Have you been busy with things that are meant to last
today?
 Have you upset the status quo today?
 Have you eaten with another person at your work
today?
 Have you delegated things today?
 Have you prepared something great today?
 Have you done things outside your daily routine that
make you more effective?
 Have you learned anything today from your mistakes or
from mistakes of others?

SME Funding Expert Transformation
Process
• Understand how
SME instrument
mechanism works
• Identify the most
attractive funding
topics for your
needs
Step
1
•Follow rituals
religiously
•Master all
actions from
initiating an
attractive idea
to successful
submission
Step
2
•Prepare great
proposal
•Master how to
write a
convincing
proposal
Step
3
5 Fingers’
Technique
I.C.R.E.A.T.E.S.
system
C.R.I.T.E.R.I.A.
Formula
Daily Habits
B.U.N.D.L.E.R.
Habits
From Struggle To Success
40

Types of SME instrument projects
41Source: Easme website

SME instrument Topics 2016 Phase 1/Phase 2
42
1.Open Disruptive
Innovation 6/54 Μ€
2.Νanotechnologies,
materials,
manufacturing
processing
3.18/28.64 Μ€
3.
Biotechnology
0.75/6.75 M€
4. Space
1.13/10.23M€
5. Healthcare
biotechnology
3.5/31.5 Μ€
8. Blue (Fishery-
maritime)
Growth
0.95/8.55Μ€
9. Energy
2.3/20.7Μ€
10. Transport – Smart
Cities 5.75/51.8 Μ€
11.
Climate/Environm
ent 2.5/22.5 Μ€
12. Inclusive
Society
1.08/9.7Μ€
13. Security
1.53/13.8 Μ€
7. agriculture,
forestry, agri-
food, bio-sectors
2.54/22.9Μ€
6. ICT for health,
well-being & Ageing
Well 0.75/16.2 Μ€

Five fingers technique
Ring Finger – How many/much?
1. How many proposals were submitted in the
previous call?
2. How many proposals were accepted in the
previous call?
3. How much is the total budget for this call?
4. How much is the average grant per project?
5. Ratio 2/1 gives the success rate
6. Ratio ¾ gives the no. of proposals expected to
be funded
As long you are feeling comfortable with the above
two checkpoints, then you go ahead with the
following question.
Tip: Additional ratio is the Attractiveness Factor= 6/1, if less than 10% then , if more than 20% then 
43

Example on Ring Finger Technique
Source: EASME
44

Phase2 proposals submitted by Feb 2016
45

Phase2 proposals by Feb 2016 accepted
46

Phase 2 budget 2016 per cut-off date
• Annual available budget is distributed evenly now per cut-off dates
• in 2016 there are 4 cut-off dates, i.e. available budget per cut-off date is as
follows:
– SMEInst-01-2016 (ICT): 54/4= 13.5Μ€
– SMEInt-02-2016 (Nanotechnologies):28.647/4= 7.16 Μ€
– SMEInst-03-2016 (Biotechnology):6.75/4= 1.687M€
– SMEInst-04-2016 (Space): 10.233/4= 2.558 Μ€
– SMEInst-05-2016 (healthcare biotechnology): 31.5/4= 7.8 Μ€
– SMEInst-06-2016 (ICT for health): 16.2/4= 4.05 Μ€
– SMEInst-07-2016 (Agriculture): 22.909/4= 5.527 Μ€
– SMEInt-08-2016 (Blue Growth): 8.55/4= 2.137 Μ€
– SMEInst-09-2016 (Energy): 20.7/4= 5.175 Μ€
– SMEInst-10-2016 (Transport): 51.813/4= 12.953 Μ€
– SMEInst-11-2016 (Climate, Environment): 22.5/4= 5.625 Μ€
– SMEInst-12-2016 (Business Model innovation): 9.72/4= 2.43 Μ€
– SMEInst-13-2016 (Security): 13.837/4= 3.459 Μ€
47

Ring Finger Technique Findings
Success
Rate
Min no. of proposals to be
funded per call
Attractiveness
Factor
ICT 6.8% 6 4.5%
Nanotechnologies 6.6% 3 5%
Biotechnology 6.6% 1 6.6%
Space 12.5% 1 12.5%
healthcare biotechnology 11.5% 4 15.3%
ICT for health 8.1% 2 5.4%
Agriculture 13.3% 3 6.6%
Blue Growth 14.2% 1 14.2%
Energy 9.37% 3 4.6%
Transport 12.7% 6 10.9%
Climate, Environment 6% 3 6%
Business Model
innovation
4% 1 4%
Security 6.66% 2 6.66%
48

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