Public Sector Funding Options for Tech Start-ups, Kevin Lonergan, Innovation Centres Scotland Ltd

albainnovationcentre.co.uk @albainnovation

PUBLIC SECTOR FUNDING OPTIONS FOR TECH START UPS

Kevin Lonergan Commercialisation Adviser

Follow on Twitter at #techinvest

Scottish Enterprise (SE) Innovation Grants

• SMART Feasibility

• SMART R & D

• R & D

• Innovation Support


SMART Feasibility / SMART R & D Grants

• Advance in tech innovation in the UK

• 6 – 18mths Feasibility, 6 – 36 mths R and D

• Grant Support

• Feasibility 70%, max £100k

• R and D 35%, max £600k

• Application Process - detailed & can be lengthy


R & D and Innovation Support

• Less innovative than SMART

• Grant Support

• 30-35%

• R and D no max, Inn Support max £50k

• Application Process - less detailed than SMART


SE INNOVATION GRANTS

• Eligible costs - internal and external

• Payment points

• De-minimis aid, max c£160k over 36

months, impacts on SEIS tax scheme

• Economic development


OTHER INNOVATION GRANTS

• Interface – Innovation Vouchers £5k, follow on

fund 50% up to £20k max grant

• Technology Strategy Board (TSB) now Innovate

UK – competitions and grant funding

• Horizon 20/20 – competitions and grant funding


SE INVESTMENT GRANT

Regional Selective Assistance

• CapEx and new jobs

• Depends on location and size of business, small

business 20-30% grant support, c£10k per new job

(depends on skill level)

• Need to explore all other funding options, can be a

fairly quick decision, 2 to 4 weeks


SCOTTISH INVESTMENT BANK (SIB)

Investor Ready Grant

• 30% towards Accountancy, legal, IP and

marketing, max of £10k over 24 months

• Mainly for companies seeking SIB Debt/Equity

• Can be a quick decision by SIB


SCOTTISH INVESTMENT BANK

Equity and Debt Funds

• Scottish Seed Fund

• Scottish Co-investment Fund

• Scottish Venture Fund

• Scottish Loan Fund



Scottish Seed Fund

• £20k to £250k

• Establish Eligibility

• Match Angel Investment

• Can be a lengthy process



Scottish Co-Investment Fund

• £100k to £1m support, max £2m deal size

• Match Co-Investment Partner Angel Investment

• Number of Co-Investment Partners - SE website

• Not as lengthy as Seed Fund



Scottish Venture Fund

• £500k to £2m support, packages of £2m to £10m

• Can match Angel Investment / VC

• Source Angel Investment / VC first

• Pari Passu



Scottish Loan Fund

• Businesses with Turnover of > £1m

• £250k - £5m

• Up to 7 year term

• Managed by Maven Capital Partners


West of Scotland Loan Fund and East of Scotland Investment Fund

• 12 Councils – West and 9 Councils - East

• Max £100k, 5-6% interest rate, capital

holidays, 5-7 year term

• Can be up to 50% of funding package

• Can be a lengthy process


Other Support/Competitions

• SE – Marketing, ICT and SDI – 30% grants

• Local Council grants – Marketing, jobs, capex

• Scottish Edge - £25k cash, £25k loan

• Up Accelerator - £25k for 12% equity stake

• Starter for 6 – up to £10k cash


• Time involved vs amount of money

• Economic Development; jobs, turnover

• Know how much money; when, what, why

• Be patient ; be honest - can take time & hurdles

to overcome

• Listen to advice, be flexible; be open to navigating the public sector funding landscape

• Explore Angel investment options


Tips for Dealing with Funders

Brought to you by & in partnership with … Delivered by…

Kevin Lonergan; Commercialization Adviser

Alba Innovation

+44 (0)7947 774 434

+44 (0)1506 592 100

[email protected]

albainnovationcentre.com

@albainnovation


Public Sector Funding Options for Tech Start-ups, Kevin Lonergan, Innovation Centres Scotland Ltd

Business

Transcript of Public Sector Funding Options for Tech Start-ups, Kevin Lonergan, Innovation Centres Scotland Ltd