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Tekes innovation funding

Productinnovations

Process andworking lifeinnovations

Serviceinnovations

Innovativebusinessconcepts

What is innovation?

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Knowledge or competence used in a manner that brings new benefits for economy or society

Innovation?

Tekes innovation funding

R&D and innovation projects incompanies

Research projects at research unitsand companies

International growth of youngcompanies

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We provide funding for the development of innovations that aim at creating growth and new business

Loans are risk loan without collaterals; a part of the loan can be paid in advance to SMEs, usually 50% or 70%

Tekes funding is either a grant or a loan

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We cover a part of the project expenses. In order to receive Tekes funding, a company must have the prerequisites for arranging its own financing share.

Grantsare paid every six months in phase with realised expenses to SMEs, usually 35% or 50% to large enterprises, 25% or 35%

Key figures 2012

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21€in annual turnover

In SMEs, one euro fromTekes produces

Applications processed in

days

71

of company funding toSMEs

68 %

The projectscreated 1,260new or replacingproducts, services orprocesses

2,900funding applications

1,700development ideas tested

1,240rejected applications

350 million euros forcompany projects,of which 135million for younggrowth companies

6.2billion euros

Target year turnoverexpected from companyprojects

47 out of 50fastest-growingtechnologycompanies in Finlandare Tekes customers

123

Funding for companies andresearch organisations,570 million euros

570 M€

€

Tekes innovation funding supplements a company's other sources of funding

Source: Ohjelmistoyrittäjät ry

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Capital/investment

Phase Start-up Growth Expansion

Funding options

Founders, family and friends

Tekes funding

Angel investors and investor groups

VCs

Turnover

Banks

€/$50k €/$500k €/$2M €/$5M €/$10M €/$20M €/$100M

0 €/$1M €/$10M €/$50M

Finnvera

Leader

What are the requirements for funding?

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Growth and wellbeing through regeneration

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Management’s skills in international

interaction

Willingness to grow and plans forinternationalisation

Organisation ofregeneration andgrowth

Customers

Opportunities

Current status and capabilities

Market potential

Utilisation of partnershipsand networks

Reforming operationalmodels in the market

Customer insight

Assessment of an SME's innovation ability

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Product portfolio andpossibilities to expand it

Assessment of the project to be funded

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Need

Approach

Benefits

Competition

Market need Which customer need have you recognised? What is the problem you want to solve?

In what way does your solution respond to the market need? Who are potential customers? Why would they buy/use the product/service?

Benefit in relation to costs How much are your customers willing to pay?

Competitive situation Who are your competitors? Why would the customer buy from you?

Funding How will you cover the self-funded proportion?

Funding of foreign companies

Tekes can fund R&D projects of foreign owned companies

Legal entity and operations are required in Finland

Foreign owned companies are funded on same criteria andconditions as Finnish companies

Funding application is required

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Funding for foreign owned companies

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Pre-evaluation Planning to establish a

subsidiary in Finland Engaging significant R&D

and business activities inFinland

Written business plan for Finnish activities

Basic information on the planned project

Letter of Intent Intention to fund, if the

normal funding criteria are met Application required Business plan to be followed

Funding criteria Business activity to be pursued Technology, innovation,

competence and know-how to be developed

Resources to be used Cooperation to be developed

and utilized Impact on the Finnish economy

Funding for R&D projects in Finland Products, services,

production methods Business concepts Trial production or

demonstrations Organization and

management practices

Growing investments in R&D – public and privateActive dialogue involves companies, research institutes and

public sector Innovation leader*Highly skilled personnel (ICT, Life science)Part of European Union

• Easy access to Russian and

• Nordic markets

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Finland is a great innovation environment

Process for funding applications

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A project team is appointed. The team familiarises themselves in the

application and the applicant.

A further discussion with the customer for

more details

The project team prepares

a proposal to a funding meeting

The funding meeting makes a decision.

The project manager tells the approving or rejecting funding decision and the grounds for it to the customer. The customer receives a written notification by post or through Online Services communications.

Review of application data

Sounding and support discussion

The customer receives a notification of receipt

The customer submits an application in the

Online Services

Project follow-up

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The Tekes project team will keep contact with the customer and follow upon the progress of the project through reports and accounting statements.

Custom

er

Project implementationReports and accountingstatements

Project implementationReports and accountingstatements

Project implementationReports and accountingstatements

Accepting the funding decision with related terms and conditions

Project implementationReports and accountingstatements

The right to audit lasts for 5 years

Ex post report after 3 years

Tekes

Payment decision

Payment decision

Payment decision

Funding decision

Report approvals and payment decisions

A possible loan advance

Frequently asked questions

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Tekes pays for a part of the costs accordant with the project plan, which can include e.g. salaries,

travel expenses and purchased services.

We provide funding for the development of innovations that can create growth and new

business. Describe your idea and your company.

Tekes funding usually covers 35-50 % of project costs.

Do you have the will and ability to grow and renew? Do you have the resources and expertise?

We have “this thing”, canwe get funding for it?

What do you think aboutour idea?

What is requiredfrom us?

What can we do with it?

How much money can we get?

Do not hesitate to contact us!

www.tekes.fi/en

Tekes shares the risk of growth and renewal

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