How to succesfully obtain aValorisation Grant

October 11th, 2012Stefan JongeriusWouter Segeth

Img src: www.technologie.at

Mission STW

Est. 1981Enabling knowledge transfer between technology driven sciences and its potential users

1. By financing excellent applied scientific research

2. By uniting scientists and potential users in research

Current relations

• 500 projectleaders

• 750 researchers

• 600 companies in user committees

• 2500 actual user relations

• 50 fte STW office employees

TUD26%

TU/e18%

UT16%

UU7%

WUR7%

UL6%

RUG5%

Radboud5% UvA

3%

Institutes3%

VU3%

Erasmus 1%

Participation knowledge-institutions in STW-programs (OTP, Perspectief & Vernieuwingsimpuls) based on running projects in 2009

Universities involved

Agro-food3%

Horticul-ture, seed

materi-als4%

Chem-istry9%

Energie7%

HTSM45%

Creative industry

1%

Logistics1% Life sciences & health

27% Water4%

Topsectors

Percentage relevance topsectors based on STW projects

STW network

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

STW budgets

Yr. 2011

income expenses

10,5MNWO other Vernieuwingsimpuls

31,7M Open Technology ProgramNWO, OCWbasic funding

23,0M PerspectiefEL&I

9,5MPartnership & Valorisation Grant

Co-finance & transfer fees

€ 74,7M

STW Instruments

31,7M€

10,5M€

23M€4M€5,5M€

Open Technology Programme• Technology driven research projects• Size: ≤ 750 k€ per project• In-cash and/or in-kind contributions

from users

Perspectief• Technology driven networks• ≥ 3 universities• Size: 2 - 7,5 M€ per programme

Valorisation Instruments• Valorisation Grant• Demonstrator• Stimulation commercialisation

of research results

Partnerships• Demand-driven programmes• 50% in-cash contributions from

industry• Size: ≤ 3 M€ per partnership

Vernieuwingsimpuls (NWO)• Individual research grants• Size ≤ 1,5 M€ per proposal

Financing valorisation

Fundamental Research

Applied Research Transition Market entry Market

expansion

Banks

Venture Capital

Industry

Angel Investors

Industry

Government

Funding intensity

Funding gap

Technology transfer

Valorisation Grant

Partnership

OTP

Perspectief

Demonstrator

Pro

of-o

f-Prin

cipl

eP

roof

-of-C

once

pt

Pro

toty

pe

Pre

-ser

ies

Pro

duct

PrivatePublic

ResearchOTP

Perspectief HBO RAAK

Result Sales

Valorisation Grant Start-Up & SME

Active entrepreneur

Industry & SME

Promising result

Demonstrator

STW valorisation

Industry & SME

Active user

Knowledge transfer

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

New technology leading to new business from public to private

Valorisation Grant

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 Phase-1 Phase-2

Submitted Granted

Submitted

Granted

Life Sciences148 60 45 16

High-tech systems 127 59 37 20

ICT80 31 26 15

Chemistry31 16 14

4

Total386 166 122 55

Impact Valorisation Grant

VG performance indicator

Companies Phase 2 start-up SME

52 (96%)2 (4%)

Follow-up appplication phase 1 ► phase 1 phase 1 ► phase 2 phase 2 ► phase 3

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 applicationContent

1. Contact details

2. Business development plan

2.1 The business idea

2.2 The product development plan

2.3 Market and competition

2.4 Business organisation

2.5 IP position and strategy

3. Project plan

3.1 The aim of the project

3.2 Description of work

3.3 Milestones and time schedule 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)