The European Commission presented details of a new €100 million “Fast Track to Innovation” (FTI) pilot action and five innovation prizes under Horizon 2020, the European Union’s €80 billion research and innovation programme. The FTI aims to support Europe’s economy by offering innovative businesses and organisations grants to give a final push to get great ideas to market. The prizes offer a reward for technological breakthroughs of high societal relevance. The initiatives underscore the drive to support innovation in Europe as part of the first, two-year Horizon 2020 work programme. So, it appears the EU Commission has got religion about the new tech world. Let’s see what the details are:

Who can apply?

Applications are welcome from owner-managed company based in the EU, which have developed innovative products or services and are now looking for additional capital for project financing. Other requirements are that the company has an annual turnover of less than EUR 50 million and fewer than 250 employees. The funded industries range from R&D driven biotech and energy companies up to the FinTech apps that would save costs for EU companies. The added value and innovative nature of the start-ups is what counts.

How much money do I get?

The grants are divided into different categories. Smaller amounts of funding of up to € 50,000 may be requested for the purpose of idea validation. Funding of half a million to € 2.5m are primarily for scaling of ideas or growth realization. There is no repayment obligation, which makes the funds all the more attractive. The financial aid is in fact not recognized as a loan but as equity excluding a transfer of shares of the company.

Where’s the catch?

There is no catch. The EU expects a very high demand. The competition is not sleeping. Therefore, the formal and substantive requirements of the application are very high. Each smallest form of error or inadequate answers to the questionnaire will result in disqualification. The content of the application will be evaluated by external industry experts on a point system. The main evaluation categories are:

• Innovation Excellence (innovation and planned project implementation)
• Impact (the expected contribution of start-ups in the sector and EU) and
• Quality (the planned resource utilization of funds)

How can I apply?

The application portfolio provides a maximum ten-page pitch deck and answering a questionnaire. But beware – The principle of awarding points is: “In God we trust, all others bring data”. The deck should be strong in number and based on facts and portray the idea of ​​milestones, objectives, and resource utilization of the project clear and realistic. A detailed description of the added value and industry impacts of start-ups is essential. For funding in the amount of €0.5 to €2.5 million, a detailed business plan is needed.

When can I apply?

Every year there are four application rounds. The next dates are September 24th and December 17th 2014. Your startup has to apply to a certain round (so-called “Calls”), which are published on the website of Horizon 2020. The calls are aimed at different topics and industries – find your perfect call and off we go. The application costs nothing. On the Horizon 2020 site, you can get a first overview of the EU initiative and the current call.