How to succesfully obtain a Valorisation Grant

October 11

th

, 2012

Stefan Jongerius Wouter Segeth

Mission STW

Enabling knowledge transfer between technology driven sciences and its potential users Est. 1981 1. By financing excellent applied scientific research 2. By uniting scientists and potential users in research Img src: www.technologie.at

Current relations

• 500 projectleaders • 750 researchers • 600 companies in user committees • 2500 actual user relations • 50 fte STW office employees

Universities involved

UL 6% RUG 5% Radboud 5% UvA 3% Institutes 3% VU 3% Erasmus 1% WUR 7% UU 7% UT 16% TUD 26% TU/e 18% Participation knowledge-institutions in STW-programs (OTP, Perspectief & Vernieuwingsimpuls) based on running projects in 2009

Topsectors

Creative industry 1% Logistics 1% HTSM 45% Life sciences & health 27% Energie 7% Water 4% Agrofood 3% Horticulture, seed materials 4% Chemistry 9% Percentage relevance topsectors based on STW projects

STW network

Bubblechart STW network; size indicates number of proposals; relative distance indicates collaboration

STW budgets

Co-finance & transfer fees EL&I NWO other € 74,7M 9,5M Partnership & Valorisation Grant 23,0M Perspectief 10,5M Vernieuwingsimpuls NWO, OCW basic funding income 31,7M Open Technology Program expenses Yr. 2011

STW Instruments

• • Vernieuwingsimpuls (NWO) Individual research grants Size ≤ 1,5 M€ per proposal • • • Perspectief Technology driven networks ≥ 3 universities Size: 2 - 7,5 M € per programme 10,5M€ 31,7M€ 23M€ 5,5M€ 4M€ • • • Open Technology Programme Technology driven research projects Size : ≤ 750 k€ per project In-cash and/or in-kind contributions from users • • • Partnerships Demand-driven programmes 50% in-cash contributions from industry Size : ≤ 3 M€ per partnership • • • Valorisation Instruments Valorisation Grant Demonstrator Stimulation commercialisation of research results

Financing valorisation

Fundamental Research Government Applied Research

OTP Perspectief

Transition

Valorisation Grant

Market entry Market expansion Funding intensity Banks

Demonstrator

Funding gap Venture Capital

Partnership

Industry Industry Angel Investors

STW valorisation

Result Public Private Active user Knowledge transfer Industry & SME Research OTP Perspectief HBO RAAK Promising result Demonstrator Active entrepreneur Valorisation Grant Industry & SME Start-Up & SME Sales

Valorisation Grant

Phase 1: Feasability study • Grant up to 25.000€ • To prove the technological and commercial feasibility Phase 2: Valorisation • Grant up to 200.000€ • Transition from public research to private business Phase 3: Commercialization • Business running • Private funding

STW Valorisation Grant

Started in 2004. This program closely resembles the American Small Business Innovation Research program (SBIR). The main objectives of the Valorisation Grant are: To transfer university knowledge into business • to existing SME companies • to new companies To strengthen the innovation power of SME • high-tech innovations

Valorisation Grant

Phase 1: Feasibility study

•

to show technical feasibility

•

to show economical / commercial feasibility

•

maximum: 25.000 euro Phase 2: Valorisation phase

•

proof of concept

•

to raise venture capital

• •

to serve first customers maximum: 200.000 euro Phase 3: Commercial phase

•

fully commercial operating company

•

privately funded, no public funding

Public Private

Valorisation Grant

Who can apply?

Only university employees can apply However… The applicant can use the grant to start-up a company or to cooperate with an existing SME The advantage Stimulates university employees to start business activities Universities becomes much more involved in innovative SME activities

Facts Valorisation Grant

• • • • •

Yearly budget: 3-4 million euro

2 calls a year Open call, no themes. One big competition. Every applicant gets interviewed by a experienced panel of entrepreneurs, private bankers and scientists STW is willing to transfer or license IP to company for market price

Facts Valorisation Grant

VG 2004-2010 Life Sciences High-tech systems ICT Chemistry

Total Phase-1

Submitted Granted 148 127 80 31 386 60 59 31 16 166

Phase-2

Granted Submitted 45 37 26 14 122 16 20 15 4 55

Impact Valorisation Grant

VG performance indicator

Companies Phase 2 start-up SME Follow-up appplication phase 1 ► phase 1 ► phase 2 ► phase 2 phase 3 phase 1 52 (96%) 2 (4%) 43% 45% 50-75%

Valorisation Grant start-ups

Findings so far

• • • • The motivation at the university to develop your own business is high. The entrepreneurial skills at the universities can be improved.

The incubator facilities at the universities make Valorisation Grant projects more successful Low-entrance private seed capital makes the continuation into phase 3 relatively easy.

How to write a VG phase 1 application

Content 1. Contact details 2. Business idea 2.1 The problem 2.2 The proposed solution 2.3 Innovative aspects 2.4 Commercial aspects 2.5 The IP position 3. Project plan 3.1 The aim of the project 3.2 Description of work 3.3 Milestones, time schedule and cost indications 3.4 The project team 4. Budget plan

• • • •

Evaluation criteria: Technological innovation (1x) Market potential (1x) Project plan (1x) The team (1x)

How to write a VG phase 2 application

Content 1. Contact details 2. Business development plan 2.1

2.2

2.3

2.4

The business idea The product development plan Market and competition Business organisation 2.5

IP position and strategy 3. Project plan 3.1

3.2

The aim of the project Description of work and cost indications 3.4 The project team 4. Budget plan

• •

Evaluation criteria: Technological innovation (1x) Market potential (1x) Project plan (2x) The team (2x)