The Horizon 2020 SME Instrument

 Are you a highly innovative, ambitious and passionate small- or medium-sized business with global ambitions? Are you looking for excellent business resources and mentorship - and substantial funding wouldn't hurt either?

As part of the Horizon 2020 programme, (which runs from 2014 to 2020)  the European Commission is hand-picking potentially disruptive businesses to invest and support as part of the SME Instrument. Your business could receive up to €3 million in funding, and world-class business support and mentorship.

The instrument will take place in three phases, with the aim of transforming disruptive ideas into concrete, innovative solutions with a European and global impact.

All SMEs may apply for Phase 1, and may apply for subsequent phases depending on the progress of their proposals. If appropriate they may start at phase 2 skipping phase1.

Phase 1. Concept & Feasibility Assessment

Idea to concept (6 months)

The European Union will provide €50 000 in funding, towards carry out a feasibility study to verify the viability of the proposed disruptive innovation or concept.

Phase 2. Demonstration, Market Replication, R&D

Concept to Market-Maturity (1-2 years)

The SME will further develop its proposal through innovation activities, such as demonstration, testing, piloting, scaling up, or miniaturisation. It will also draft a more developed business plan (around 30 pages).

Proposals will be based on a business plan developed on phase 1 or otherwise. The EU aims to contribute between €0.5 million and €2.5 million.

Phase 3. Commercialisation

Prepare for Market Launch

SMEs will receive extensive support, training, mentorship and facilitating access to risk finance as the project is further polished into a marketable product.

The EU will not provide additional direct funding in this phase.

In 2014 and 2015 the SME Instrument will sponsor SMEs operating within 13 themes:

• High risk ICT innovation
• Nanotech, or other advanced tech for manufacturing and materials
• Space research and development
• Diagnostics devices and biomarkers
• Sustainable food production and processing

• Blue growth (ocean based projects)
• Low carbon energy systems
• Greener and more integrated transport
• Eco-innovation and sustainable raw material supply
• Urban critical infrastructure
• Biotechnology-based industrial processes
• Mobile e-government applications (2015 only)
• SME business model innovation (2015 only)

KEY FACTS

The projects to be executed are defined by the applicant(s) within the overall themes mentioned above. The projects are therefore 'Bottom Up' and not specifically defined by the EU. You define what you want and need to do.

The applicant may be a single   OR   an SME collaboration. Both types are eligible.

The application is competitive. Applications will be ranked by established criteria and only the best supported upto the call budget limit.

Applicants will need to find matched funding of 30% of the total eligible costs. Thus the EU support will be 70% of the project a very generous limit.

The calls for proposals are continuously open but there are several cut-off dates per year: The first cut-off date for phase 1 is 18/06/2014

This is the first round of the SME instrument and thus nobody has experience of the competition but at Grant Aid we have had extensive experience of EU SME grants such as Eureka, Eurostars and FP4, 5, 6, 7. 

Further information can be found at our web site www.grantaid.com or from the EU web site http://ec.europa.eu/programmes/horizon2020/