AHSF Innovation Award Guidebook

COVID - 19 Edition

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Contents

Introduction ...................................................................................... 3

Scope & Strategic Objectives of the Award .................................. 4

Program Structure ........................................................................... 5

Innovation/Startup Valuation ..................................................... 12

Evaluation Process ......................................................................... 14

Deep Dive Capacity Building Program ........................................ 16

Rules and Guidelines for Applying .............................................. 19

Regulations .................................................................................... 21

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Introduction

Today, developed and developing economies promote innovation to achieve eventual economic and social development. It is now also implicit that innovation is taking place in all domains of the economy, in not only high-tech companies and technology sectors. As a result, economies are firmly centering their attention on the creation and upkeep of sound and dynamic innovation ecosystems and networks.

Jordan is ranked 86th among 129 countries in 2019 according to the Global Innovation Index (GII), with 16% improvement from 2016 meeting the expected level of development. The country can make use of its main resource (well-educated individuals) and its fast growing, vibrant and diverse Innovation and Entrepreneurship Ecosystem to attain major national social and economic development.

Abdul Hameed Shoman Foundation (AHSF) identifies innovation as one of its three pillars; aims to participate in driving the engine of innovation led growth by spreading a culture of innovation across sectors with pressing needs, and creates an environment where innovators and entrepreneurs are given opportunities and necessary support to develop viable impact-driven innovations.

Aligned with its strategic objectives and continued efforts in supporting innovation; Abdul Hameed Shoman Foundation (AHSF) proudly launches the Abdul Hameed Shoman Foundation Innovation Award (AHSF-IA) – 2nd edition in response for COVID-19.

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Scope & Strategic Objectives of the Award

The COVID-19 pandemic developed as a health crisis, moved on to becoming an economic concern. The current setting has particularly affected the VC ecosystem, startups and; small and medium enterprises (SMEs). Indeed, startups, small and medium size businesses are at the front line of the battle, with the consequences being especially severe for them, due to higher levels of vulnerability and limited resources.

The new reality is sure to spark innovations and pivot many business models to respond to today’s changing environment in a timely manner. For innovative and agile businesses to come back after the pandemic falls, and once again serve as an engine of innovation ecosystem, it is vital to support their way forward.

The objective of the second iteration of AHSF-IA is to support ideation, concept validation and enable scaling and growth of Jordanian innovations with significant social impact and adaptive to the permanent change caused by COVID-19 in the highly disrupted fields and sectors.

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Program Structure

1. Award Fields

The award targets innovative solutions with significant social impact, responsive and high potential to scale in the following six fields. AHSF-IA is specific to these fields and all applications shall be categorized in the following themes to be grouped for accurate evaluation process

1.1. Healthcare and Biomedical Technology Healthcare systems were the distinguishable element among all other systems in facing COVID-19. Now all countries will start fixing their public health, look for possible treatment, design new testing methods, manufacture equipment, optimize operating systems and enhancing health conditions. In addition, a common factor in epidemics is the high number of patients who arrive at hospitals all at the same time. Coping with these rising needs and maintaining a resilient healthcare system will need new solutions and innovations in all sub-sectors. Examples: • Health care services and facilities • Pharmaceuticals • Biotechnology

• Medical devices and equipment • Healthcare industry supply chain • Others

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1.2. Labor Market and Economic Productivity Solutions The world labor markets have been turned upside down since the rapid outbreak of COVID-19. The unemployment rates are worse than ever and economic decline is visible across all industries. Companies are struggling to figure out how to handle an extreme decline in business activities while maintaining their qualified workers. Looking forward, economic impact of COVID-19 will be the concern, and coming up with sustainable, vital and impactful solutions and innovations to accelerate the economic and employment activities is crucial. Examples: • Job creation • Shared economy • Employment solutions

• Management systems • Others

1.3. Education Solutions Many countries around the world have seen schools and educational institutions go into lockdown at around the same time and for the same reason. Coronavirus-related disruption gave governments and educators the opportunity to rethink the sector. Technology has stepped in and will continue to play a key role in educating future generations. Innovations with the ability to improve the educational system to be significant in redefining the role of educators, unlock technology to deliver better education and teach future-needed skills or any relevant objective. Examples: • E-learning • Educational tools • Arabic learning tools and

applications

• Special needs education solutions • Safe and accessible learning environments • Others

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1.4. Agriculture As the COVID-19 pandemic forced countries to close borders, many agricultural sectors confronted major challenges. The pandemic is affecting global food systems, disrupting regional agricultural value chains, and posing risks to household food security. With heightened awareness of food safety for producers, businesses, governments and consumers, innovative solutions associated with agriculture and food security are welcomed to apply to this field. Examples: • Food security • Agriculture technology • Nutrition

• Farming/cropping systems • Value chains • Others

1.5. Culture and Arts COVID-19 had a sudden and substantial impact on cultural and art scene referring to preventing live concerts, cultural events, publishing, and closure of libraries, museums and galleries. The increasingly available digital platforms and innovative solutions minimized the challenge a bit. Yet, creative solutions contributing to our wellbeing, serenity, inspiration, intellectual stimulation and resilience are key to long-term desired impact. Examples: • Libraries • Music • Theater • Performing arts

• Festivals • Forum • Cultural activities • Cinema • Other

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1.6. Green Technology and Environmental Sustainability While the green technology and environmental sustainability is the least affected sector among others. Its high potential of creating positive economic impact by investing in green technology and environmental sustainable and innovative solutions could generate huge economic benefits while helping to tackle the global climate emergency. Examples: • Water • Recycling • Renewable energy • Green transportation • Green buildings

• Energy efficiency • Smart cities • Waste management • Other

Note:

All technology-based solutions responding to and leveraging one of the mentioned fields are encouraged to apply.

2. Award Stages Applicants with pioneering solutions to problems can apply at one of the three stages described below:

Stage 1: Proof of Concept and Prototyping (prelaunch)

This stage is dedicated to supporting the development of a working prototype and/or proof of concept. Pre-requirements:

® Proof of concept: Full-fledged market study and/or qualified/reliable scientific research paper or patent

® Initial prototype sample

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Desired Outcomes (eligible funding activities):

® Working prototype ® Prototype testing final product/solution design (testing numbers to be

identified) ® +1 team members (partner or paid staff) ® Initiate startup governance ® Product/solution development roadmap (Partners, production plan, etc.) ® Well-defined social impact

Stage 2: Go-to-Market - Product Development, validation and MVP - (pre/post launch)

This stage is dedicated to supporting the development, testing and validation of the fully developed product/solution for market entry and startup launch. Pre-requirements:

® Proof of concept: Full-fledged market study and/or qualified/reliable scientific research paper or patent

® Initial prototype sample ® Tested and working prototype (testing proof will be agreed on with the

Foundation, number of trials, data sheet, result analysis, video, etc.) ® Final product/solution design ® +1 team members (partner or paid staff) ® Initiated startup governance ® Product development roadmap (partners, production plan, etc.)

Level 1: Desired Outcomes (eligible funding activities):

® Tested and validated product/solution (testing volume will depend on product type based on our recommendation)

® Viable product ® Defined/implemented production/development process ® +2 team members (partners or paid staff) ® Registered Startup with well-established governance ® Well defined business plan and go to market strategy ® Investor pitch ® Well defined social impact ® Company footprint / environment contribution

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Stage 2 applicants with potential to be eligible for stage 3 in the following editions could get extension grants to achieve the following to better define their social impact:

® Creation of evidence-based solution viability ® Achieve a proof of impacting thousands of unfortunates

Required numbers will be decided based on the type of the solution and the progress completed during the first round of funds.

Stage 3: Growth (post launch)

This stage is dedicated to supporting the growth and scale up of proven solutions/innovations that have achieved market validation and impact, and are financially sustainable and scalable. This may include expanding innovations or assessing ways to drive cost-effectiveness as the scale continues to increase. Pre-requirements:

® Proof of concept: Full-fledged market study and/or qualified/reliable scientific research paper or patent

® Initial prototype sample ® Tested and working prototype (testing proof will be agreed on with the

Foundation, number of trials, data sheet, result analysis, video, etc) ® Final product design ® Product development roadmap (partners, production plan, etc) ® Tested and validated product/solution (testing volume will depend on

product type) ® Viable product ® Defined/implemented production/development process ® +2 team members (partners or paid staff) ® Registered Startup with well-established governance ® Well defined business plan and go to market strategy ® Investor pitch ® Proof of yearly sales ® Evidence based solution viability ® Achieve a proof of impacting thousands of unfortunates

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Required numbers for the yearly sales, evidence-based solution viability and proof of impacting thousands of unfortunates will be decided based on the type of the solution.

Post-requirements (eligible funding activities):

® Validated revenue streams ® Startup financial sustainability plan ® Market fit product ® Market entry milestones ® +3 team members (partners or paid staff) ® Registered Startup with advanced-established governance (board, tax

registration, options pool, etc) ® Partnerships ® Growth and scaling up plan ® Well defined social impact ® Enhanced company footprint / environment contribution

Stage ceiling amount depends on the valuation of ideas/companies in each stage and on the mapping for investors, funding agencies and other players in the ecosystem.

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Innovation/Startup Valuation

Each innovation/startup has a value. The more things checked on the list and successfully completed, the more its value increases. Valuation is usually conducted to calculate the ROI for investors, in our case, we are only depending on the valuation to calculate the pre-funding value for each idea/startup in the award’s different stages to allocate proper amount of funding. We can use positive and negative factors for more sophisticated approach. Pre-money valuation scorecard tool is suggested for our use:

Criteria – Stage 1 Scale (0-5) Weight Market Average (JOD)

Idea 25% 62,500

Prototype/product/technology 5% 12,500

Management team 25% 62,500

Strategic plans 10% 25,000

Product rollout potential/market size 15% 37,500

Capital raised 5% 12,500

Competition risk 5% 12,500

Governance 10% 25,000

Total 40 100% 250,000

According to the maximum valuation for stage 1 (250,000 JOD) and based on the market mapping, Shoman will award stage 1 innovations 10% of its valuation at 250,000 JOD at max which is equivalent to 25,000 JOD.

Criteria - Stage 2 Scale (0-5) Weight Market Average

Strength of the entrepreneur 15% 75,000

Strength of the team 15% 75,000

Size of opportunity 15% 75,000

Product or Service (as MVP) 20% 100,000

Need for subsequent funding 7.5% 37,500

Quality of business plan 10% 50,000

Readiness to sell 7.5% 37,500

Governance 10% 50,000

Total 40 100% 500,000

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According to the maximum valuation for stage 2 (500,000 JOD) based on the market mapping, Shoman will award stage 2 innovations 10% of its valuation at 500,000 JOD max which is equivalent to 50,000 JOD.

*Stage 2 innovators can apply for following grants of another 25,000 JOD after completing this edition grants to better identify their social impact and enhance their eligibility for stage 3 in the following editions.

Stage 3 valuation can be calculated in different methods as it depends on the post-money valuation as it is used for companies with generated revenue, hence; at this stage we will depend on the market trend for investors. Stage 3 startups maximum fund will be 100,000 JOD accordingly.

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Evaluation Process

The Evaluation process for the AHSF-IA second edition will contain six steps and they will be cumulative:

Internal Evaluation:

Step one: The initial filtering

Criteria: Requirement list completion

Step Two: Novelty Research

Criteria: ® Novelty of the idea (40%) ® Difficulty to copy the idea (20%) ® Effort invested in the idea (15%) ® Practicality of the idea (10%) ® Realistic budget and timeline (15%)

*During this stage, Shoman innovation team will assure proper categorization for the Stage and fields to prepare for the next innovation step.

Step Three: Internal Committee

Criteria: ® Alignment with Award’s Strategic Objective (10%) ® Problem Statement (10%) ® Novelty & Disruption (15%) ® Social Impact (15%) ® Solution Feasibility & Barriers to Market Entry (15%) ® Potential Scalability (10%) ® Team Capabilities & Effective Governance (15%) ® Proposed Project Budget and Timeline (10%)

*Top 70-80 projects will be eligible for the upcoming steps.

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External Evaluation:

Step Four: External Experts Evaluation

Criteria:

® Alignment with Award’s Strategic Objective (10%) ® Problem Statement (10%) ® Novelty & Disruption (15%) ® Social Impact (15%) ® Solution Feasibility & Barriers to Market Entry (15%) ® Potential Scalability (10%) ® Team Capabilities & Effective Governance (15%) ® Proposed Project Budget and Timeline (10%)

*Total of 40-50 ideas/startup will go to the next step -Deep Dive I capacity building program- immediately after this step and to insure proper quality of the program we cannot engage more than this number).

Step Five: Internal pitching, training outcomes and Startups Valuation

Criteria: ® Plans (10%) ® Training program outcomes (15%) ® Commitment (10%) ® Using the online tool efficiently (20%) ® Defined Social impact (25%) ® Generated presentation (10%) ® Due diligence (10%)

Valuation layer will give a recommended awarded budget based on the previously mentioned matrix, and it will only have a score on the allowed budget.

*Top 20-25 will go to the final step

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Step Six: Final Pitch

Criteria: ® Innovativeness and disruption (20%) ® Social Impact (15%) ® Market Driven Revenue Model & Scalability (20%) ® Implementation, Accessibility and Cost Effectiveness (15%) ® Budget & Financial Requirement (15%) ® Team Capacity and Presentation (15%)

Deep Dive Capacity Building Program

Deep Dive program will be implemented over two phases:

DDI (Deep Dive I):

• Common topics for all fields and stages • All shortlisted projects (40-50) • Basic skills of innovation, startup and Shoman process alignment. • All seminar style (half day each) with take home exercises and requirement

submissions • Personal Journey Workbook (PJW) will be designed from this phase and

completed in the DDII • Three open days during the DDI program for supporting the teams in their

upcoming steps, Shoman Innovation Team and IA 2018 Innovators will mentor and direct the teams.

• Required outcomes to be prepared through the program by each team: ® Final project budget ® Presentation Pitch ® Required inputs for the online assessment tool ® Clear social impact ® Action plans ® Clear set of objectives and commitments to be used in the agreement if

awarded ® 5 guest speakers between sessions (motivational talks, success stories, IA

2018 and case studies). ® 13 sessions over 7 days for actual training over two weeks and two weeks

for one to one sessions and assignments completion. One month in total.

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Training Topics and required outcomes:

Training Topic Required Submission

DDI Journey & Activation Problem/Solution statement

Human Centered Design User Journey & Value Proposition Statement

Social Impact Defined social impact

Marketing & Branding for Startups Market study, market share and competition

Financials for Startups Feasibility study inputs, financial needs and projections, one-year detailed financials

Milestones Budgeting & Shoman Forms

Award modified budget

Startup legal know how Startup Governance

Business writing Initial business plan

Presentation content

Speaking to investors & Pitching Pitch presentation

IP rights IP rights declaration

Customer centricity and business modeling

Business model

M&E and sustainability for businesses/startups

Sustainability model

Action plans + next steps + connecting the dots

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DDII (Deep Dive II):

Deep Dive II will be only few customized sessions and series of mentorship and advisory session. It will be focused toward on hands training, and linked to project implementation milestones.

• Customized sessions • Only awarded teams • Different training styles • 11-13 training days • 2 check in sessions • 4-5 months duration • Trainers and mentors will be selected according to different approach • Other topics might be added according to the online, judges, evaluators, team

and self-need assessments • Tools, exercises, learning outcomes, team commitment, training type, logistics

and other details to be discussed later building on this years’ experience

Training topics:

® Agile disciplined entrepreneurship ® Product development and road mapping ® Advanced marketing and sales strategies ® Team optimization and management ® Agile operations ® Scaling and growth ® Advanced startup financials ® Innovation driven culture ® Transformational servant leadership ® HR, policies and procedures ® Case studies

‘

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Rules and Guidelines for Applying

Eligibility

Before beginning the application process, make sure that you or your startup are eligible to apply for the award. There are two eligibility categories:

a. Eligibility criteria for applicants/projects ® Applicant must be a resident in Jordan ® Applicant must be available during all award phases ® Applications must be solutions within the award fields scope ® Applicant(s) must have all the Intellectual Property Rights for the project

(if any) ® Applicant(s) must be capable and fully responsible of the completion of all

proposed actions ® For previous award winners, applications can be submitted for projects

eligible for the next stage only ® Individual people may submit applications on their own behalf (i.e., not on

behalf of a company, organization or institution). ® Two or more people can submit an application, provided that they name

an authorized person to submit the application.

® Companies, organizations or institutions applications must have a main applicant name, a letter of authorization for these personnel should be provided

® All project activities must be conducted in Jordan ® Projects should commit to 10% cost share out of the total budget

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b. Eligibility criteria per stage Stage 1: ® Demonstrate proven concept based on reliable market research or

scientific research ® Prototype/solution initial design

Stage 2: ® Demonstrate proven concept based on reliable market research or

scientific research ® Tested and working prototype/solution ® Final product/solution design ® Have more than 1 team member or partner at least

Stage 3: ® Demonstrate proven concept based on reliable market research or scientific

research ® Tested and validated product/solution (testing volume depends on product

type) ® Have more than 2 team members or partners at least ® Officially registered and licensed company ® Submit a statement of revenues and expenditures for the previous year,

showing the total annual sales ® Evidence based solution viability ® Proof of impacting thousands of unfortunates

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Regulations

® You can submit an application by visiting the Foundation’s website at www.shoman.org.jo, and filling the online forms under the Grants and Innovation Programs – Innovation Award.

® Filled forms and applications must be completed through the system, AHSF will not accept any email submissions, paper documents or official letters.

® Incomplete applications will not be taken into consideration. Please include all necessary supporting documents, requirement list and attached files.

® Project activities cannot commence before the AHSF committee decision is taken and the agreements signed.

® AHSF has the right to request adjustments to the project or the budget as they see fit.

® AHSF has the right to decline any request even without declaring the reason.

® AHSF has the right to decline/reject funding any project even if it matches the eligibility

criteria. ® Applicants must show a 10% contribution to the requested grant.

(monetary or contribution). ® Administrative costs covered by AHSF should not exceed 10% of the total

budget of the project.

® Applicants can distribute the project activities over 18 month’s period at max starting from 01.01.2021

® Candidates are strongly encouraged to watch the instructional videos (found on our website and social media platforms) in order to fill in the forms as accurately as possible.

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Ineligible Funding Activities

® Activities/ projects that include construction or building work. ® Publishing and distribution. ® Covering the cost of attending conferences, workshops or competitions

inside or outside Jordan. ® Activities/projects implemented outside Jordan. ® Institutions or entities that have previously received funding and did not

commit to the rules and guidelines of the Foundation. ® Covering operational costs that are not tied to any project activities. ® Fundraising events and campaigns. ® Projects that do not reflect the mission and vision of the Foundation.

Attachment List

For All Stages: • Market Research or Scientific Research (based on their answer) • 3 reference letters • ID copy if Jordanian • Passport and proof of residency if non-Jordanian • Applicant(s) resume

Stage 1:

• Initial prototype/solution design

Stage 2:

• Tested working prototype/solution • Product development roadmap

Stage 3:

• Final product/solution design • Prototype/solution testing results • Company registration certificate • Company license • Product development roadmap • Evidence based solution viability • Proof of yearly sales