What Is the H2020 SME Instrument Phase 1 Funding?

The SME Instrument is a €3 billion funding scheme that is part of the largest EU research and innovation programme in of the EU called Horizon 2020 (€80 billion budget). By the end of 2020, 7500 Small- and Medium-Sized Enterprises (SME) will have received funding over a period of 6 years.

To find out if your company is eligible for funding, please read Can My Company Receive Funding from the EU?.

The SME Instrument

The SME Instrument is structured in 3 Phases:

Phase 1 - The Feasibility Study (€50.000)

Phase 1 is officially optional, but without it, the chances of success for Phase 2 are minimal. If a project cannot be approved for Phase 1, it is highly unlikely that it will succeed in Phase 2.

The duration of this project is around 6 months and its purpose is assessing the technical, commercial and financial feasibility of the project. As a result, a Business Plan is fully developed and it will be outlined if the project is a suitable investment.

Phase 2 - Innovation Development & Demonstration  (€0.5 to 2.5 million)

Phase 2 typically takes 1 to 2 years and its purpose is to bring the technology from the prototype level to commercial readiness. This will be the main development of the project and receives the highest amount of funding.

Phase 3 - Support for Market Entry (non-financial)

Phase 3 gives additional support through the Enterprise Europe Network (EEN) which can give guidance and advice on project related topics.

These tips are not only useful for European startups, professional writers, consultants and Small and Medium-Sized Enterprises (SME) but are generally recommended when writing a business plan or investor documents.

Deadlines: Post-Horizon 2020, the EIC Accelerator accepts Step 1 submissions now while the deadlines for the full applications (Step 2) under Horizon Europe are:

The Step 1 applications must be submitted weeks in advance of Step 2. The next EIC Accelerator cut-off for Step 2 (full proposal) can be found here. After Brexit, UK companies can still apply to the EIC Accelerator under Horizon Europe albeit with non-dilutive grant applications only - thereby excluding equity-financing.

Contact: You can reach out to us via this contact form to work with a professional consultant.

AI Grant Writer: ChatEIC is a fully automated EIC Accelerator grant proposal writer: Get it here.

EU, UK & US Startups: Alternative financing options for EU, UK and US innovation startups are the EIC Pathfinder (combining Future and Emerging Technologies - FET Open & FET Proactive) with €4M per project, Thematic Priorities, European Innovation Partnerships (EIP), Innovate UK with £3M (for UK-companies only) as well as the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) grants with $1M (for US-companies only).

Any more questions? View the Frequently Asked Questions (FAQ) section.

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