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

Some basic remarks & parameters

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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 levelthrough 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 ProjectsInnovFin MidCap Growth

FinanceInnovFin MidCap Guarantee InnovFin SME Guarantee

Description Loans Service for R&ISMEs & Small Midcaps R&I

Loans Services

SMEs & Small Midcaps R&I

Loans Services

SMEs & Small Midcaps R&I

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 accessthrough local intermediaries :

Financial institutions

through local intermediaries :

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

OtherUniversities, 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

DescriptionTechnology Transfer Finance Facility

PilotCrowdfunding Pilot Business Angels ICT Pilot

EU Program H2020 H2020 H2020

at EU level still to confirm still to confirm still to confirm

at local levelthrough 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 levelthrough 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 »

[email protected]

www.impulse.brussels

www.brusselsnetwork.be

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european financing schemes under h2020 & cosme - workshop on juncker plan - brussels 5.05.2015

Business

cosme h2020 financing

classic financing of

different eu programmes

characteristics access

programmes eu institutions

belgium brussels

local intermediaries

workshop plan juncker