1 / 21

Finding Innovation Funding Innovation 25 April 2007

What sort of initiatives are there?. Demand side initiativesProvision of better information of what is available;Investment Readiness programmes.Supply side initiativesGrants to support Research and Development and certain ?Proof of Concept" activity;The Research and Development Tax Credit;Gra

maddy
Download Presentation

Finding Innovation Funding Innovation 25 April 2007

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

    1. Finding Innovation Funding Innovation 25 April 2007 Access to finance for West Midlands SMEs Patrick Palmer – Head of Access to Finance at Advantage West Midlands

    2. What sort of initiatives are there? Demand side initiatives Provision of better information of what is available; Investment Readiness programmes. Supply side initiatives Grants to support Research and Development and certain “Proof of Concept” activity; The Research and Development Tax Credit; Grants for capital investment in certain areas; A range of venture capital funds; Encouragement of Business Angel activity; Small Firms Loan Guarantee Scheme; Community Development Finance Institutions.

    3. Demand side actions Better information www.westmidlandsfinance.com; Investment Readiness programmes Route to Investment (R2i); CONNECT / InvoRed.

    4. R2i Provided through the Business Link network and funded by Advantage West Midlands and the ERDF Comprising four stages: Increasing Awareness of funding sources; Education of businesses in funders’ requirements; Developing applications and businesses to ensure they are “investment ready” (Complex Development); Post Investment Support. Access through Business Link West Midlands Telephone 0845 113 1234 website www.businesslinkwm.co.uk

    5. InvoRed InvoRed will be delivered through 2 streams. The Amber stream will focus on investment grooming. Whilst the Green stream is targeted at supporting more advanced companies. I will now explain these two streams in more detail. InvoRed will be delivered through 2 streams. The Amber stream will focus on investment grooming. Whilst the Green stream is targeted at supporting more advanced companies. I will now explain these two streams in more detail.

    6. Supply side actions - Grants DTI Grants operated by AWM –Selective Finance for Investment in England and Grant for Research and Development Grants available through Business Link – Diversification, Accelerate Mercia Spinner, Technology Transfer Fund

    7. Grant for Research and Development Grant is available under four categories: Micro projects; Research projects; Development projects; Exceptional development projects. Grant is only available to SMEs; Available throughout the West Midlands; AWM have secured ERDF money to support this grant scheme.

    8. Grant for Research and Development

    9. Grant for Research and Development Key criteria are: Technologically innovative; Technical risks and R & D challenge; Commercial potential and market need; Exploitation prospects; Management and project team abilities; Commercial and financial viability; Intellectual property secure; Additionality; Wider aspects – sustainability and design considerations.

    10. Technology Transfer Fund Available in the Central Technology Belt, but extending its area of activity; Provides proof of concept funding (ranging from £5k - £25k) for new start-ups and existing SMEs; Currently confined to medical technologies and advanced materials technologies; Delivered by Birmingham Research and Development Ltd with AWM and ERDF funding

    11. Objective To raise the number of spin-out companies from the eight West Midlands Universities. Resources 16 Business Development Managers; Provides small grants (up to £50k) to the Universities to support patenting, market research, business plans, prototyping and interim management for designated projects; Consultancy from Warwick Ventures and Birmingham Research and Development Limited (BRDL) Related Technology Transfer fund in the Central Technology Belt.

    12. The R & D Tax Credit An enhanced tax deduction for eligible R & D costs – 125% for large companies, 150% for SMEs; Claimed through annual Corporation Tax Return; For SMEs, if no taxable profit after R & D Tax Credit, can receive a cash payment from HMRC of 24p for every £ of eligible cost; “R & D” for these purposes is “Work to resolve scientific or technological uncertainty aimed at achieving an advance in science or technology”; £1.8 billion of benefit since April 2000, £1 billion for SMEs and £.8 billion for larger companies.

    13. The R & D Tax Credit

    14. Selective Finance for Investment in England A grant of £10,000 or more (very exceptionally a loan) to a business to help fund new investment projects that lead to long term improvements in productivity, skills and employment; Grant is minimum required to enable the project to go ahead, but cannot exceed specified % of capital expenditure SFIE is only available in specified areas (but throughout the West Midlands for SMEs); SFIE projects have to meet a number of specific criteria.

    15. SFI Criteria Available in specified areas (Tier 2 for non-SMEs and Tier 3 for SMEs) Supports capital expenditure (grant can range from 10% to 35% of eligible capex depending on size and location) Must “make a difference” (“Additionality”) Project must create or safeguard jobs (ave grant £7,000 per job, but excellent productivity and skills scores can justify much more) Project and applicant must be viable Project should improve productivity Project should contribute to improved workforce skills Project should yield regional and national benefits Sustainability

    16. SFIE – where can you get it?

    17. SFIE – how much? Non-SMEs – only in Red (Tier 2) areas. SFIE in Tier 3 areas (everywhere except red areas) is only available to Small and Medium Sized Enterprises SFIE in Tier 3 is a maximum of £100,000 (No maximum in Tier 2) How much – see table on right In Tier 3 areas project capital expenditure should be less than £1,500,000 SME limits are: less than 50 / 250 employees; turnover less than €10m / €50m or balance sheet totals less than €10m / €43m; “independent”.

    18. Supply side actions – an escalator of venture capital funds and other risk capital

    19. Supply side actions Small Firms Loan Guarantee Scheme Provides Government guarantees on loans from private sector providers to small firms under 5 years old with viable business proposals but insufficient security for conventional finance; Loans may range from £5,000 to £250,000 and for periods from 2 to 10 years; Guarantee is for 75% of the loan; Operated through commercial banks and administered by the Small Business Service; “Small” = less than 200 employees, turnover less than £5 million (non-manufacturing £3 million)

    20. Supply side actions - Loan Funds/ Community Development Finance Institutions (CDFIs)

    21. And Remember! www.westmidlandsfinance.com

More Related