INCUBATOR SUPPORT Background A National Innovation and Science Agenda - - PowerPoint PPT Presentation

INCUBATOR SUPPORT

Background

A National Innovation and Science Agenda initiative (December 2015) An Entrepreneurs Programme element (Opened 20 September 2016) May 2017 Budget, new regional focus announced $23 million in funding through to 2019-20

What is an Incubator?

• Fosters innovative start-ups, focused on international trade
• Provides services such as seed funding, colocation,

mentoring, professional services and access to networks.

• Can include accelerators and germinators.

What is a start-up?

• An innovative, adaptive, early-stage and scalable

company with global potential.

• This excludes;
• a new division in an existing company
• Establishment of an Australian office by an existing

multinational enterprise

• SMEs with a proven history and credit history capable
• f accessing finance

Aims of Incubator Support

• Improve the prospects of Australian start-ups achieving commercial

success in international markets

• Develop Australia’s innovation ecosystem including in Australian

regions.

• Amendments to Programme Guidelines aim to better support

regional start-ups and incubators.

Impact: Local National Global New-to-Firm New-to-Market New-to-World Innovation

Grant Funding Components

New & Existing stream: Expert-in-Residence stream: $26,000 $500,000 24 months $5000 $100,000 12 months

Eligibility

• Must be an existing or new incubator
• Have an Australian Business Number (ABN)
• Be one of the following:
• an entity incorporated in Australia;
• an incorporated trustee on behalf of a trust;
• a not for profit organisation;
• a publically funded research organisation (PFRO); or
• local government.
• Joint consortia applications permitted
• Funding for up to 2 grants at any one time

New & Existing Incubators

• Enhance service offerings of high-performing

incubators

• Develop new incubators in regional areas and other

sectors with high potential for international success.

• For metropolitan applicants, 1:1 matched funding,

grants up to $500k per project

• For regional applicants, 2:1 matched funding ratio,

grants up to $500k per project

• Maximum project duration of 24 months

What is regional?

• Australian Bureau of Statistics’ Australian Statistical

Geography Classification (ASGC)

• The following classifications are considered regional:
• inner regional
• outer regional
• Regional Locator tool, determines classification based on

the address of the project location/s not the applicant’s head office

• At least 80 per cent activities must occur in a regional

setting to access generous 2:1 matched funding ratio.

• remote
• very remote

Funding Contributions-New & existing

30% 10% 10% 50%

§ Min. cash contribution § Max. in-kind contribution § Max. other government grant § Max. Incubator Support grant

Major Cities Regional

15% 10% 10% 65%

In-kind Contributions

• Non-cash contributions count towards a maximum
• f 10 per cent of your total project value
• Justify calculation of all in-kind contributions
• In-kind contributions can include;
• third party staff salaries
• access to facilities or services
• access to resources

Project funding – Example 1

A New & Existing applicant based in a major city:

Source % project value $ value Incubator Support grant 50% $500,000 In-kind contribution 10% (max.) $100,000 Other government contr. 10% (max.) $100,000 Applicant 30% $300,000 TOTAL PROJECT VALUE 100% $1,000,000

Project funding – Example 2

A New & Existing applicant based in a regional location:

Source % project value $ value Incubator Support grant 65% $500,000 In-kind contribution 10% (max.) $76,923 Other government contr. 10% (max.) $76,923 Applicant 15% $115,384 TOTAL PROJECT VALUE 100% $769,230

Regional Incubator Facilitators

• Primarily allocated to specific areas but may operate outside

their region

• Available to all applications with an emphasis on regional

incubators

• Primarily work with regional incubators to:
• Assist applications and potential applicants in regions
• Encourage innovation and links between business, industry,

research and government.

• Provide feedback on draft New and Existing applications

Merit Criteria –

New & Existing Incubators Criterion 1: Management & Business Capability Weighting 40% Demonstrate your ability to assist Australian start-ups to develop the capabilities required to succeed in international markets.

• key personnel
• track record
• networks
• incubator’s Services

Merit Criteria –

New & Existing Incubators Criterion 2: Benefit to your incubator, start ups and the broader innovation ecosystem Weighting 50%

Describe the distinct value proposition of your Incubator What gap will your project address and how? Explain how your project addresses at least 2 of the following:

• improving start-ups’ international commercial prospects
• developing Australia’s innovation ecosystem
• improving incubator capacity to support high-potential

startups

• develop new incubator capacity in regional Australia
• collaborating with start-ups using public data

Merit Criteria –

New & Existing Incubators Criterion 3: Impact of the grant Weighting 10% Explain how the grant will impact the project in terms of size, timing and reach Outline and justify your total contributions to the project including cash & in-kind contributions

Tips for quality applications

• Request for feedback on draft applications
• Use the Application Checklist provided for New &

Existing project applications

• YouTube Incubator Support Initiative for videos on
• addressing merit criteria
• submitting a competitive application

Assessment - New & Existing

• Continuous assessment
• Eligibility check undertaken by department
• Entrepreneurs’ Programme Committee assess and

recommend New & Existing Incubator applications

• Minister decides which New & Existing Incubator

applications to approve

Expert-in-Residence

• Secondments of incoming and outgoing (overseas)

experts

• Increase the capabilities of incubators by supporting

access to research, managerial and technical experts

• Outgoing experts must be embedded in a host

incubator and gain capabilities that will benefit the applicant incubator

• 1:1 matched funding up to $100,000 per project
• Maximum project duration of 12 months

Funding Contributions-

Expert-in-Residence

30% 10% 10% 50%

§ Min. cash contribution § Max. in-kind contribution § Max. other government grant § Max. Incubator Support grant

Project Funding- Example 3

An Expert in Residence applicant applying for $100,000 (max. grant):

Source % project value $ value Incubator Support grant 50% $100,000 In-kind contribution 10% (max.) $20,000 Other government contr. 10% (max.) $20,000 Applicant 30% $60,000 TOTAL PROJECT VALUE 100% $200,000

Application & Assessment-

Expert in residence

• Applications opened on 14 December 2017
• Continuous assessment
• Programme Delegate approves Experts-In-Residence

applications

• Grants under $50,000 are only assessed against eligibility
• Grants over $50,000 must also address MC2- Benefit to

your incubator, start-ups and the broader innovation ecosystem.

Eligible Expenditure

Eligible expenditure can include:

• salaries for staff employed for project activities;
• contractor costs;
• workshops and forums;
• computing equipment and software
• For new incubators only, Marketing and communication costs

Ineligible expenditure can include:

• investment in startups
• financial costs (interest/insurances)
• non-project-related staff costs
• depreciation of plant and equipment, maintenance costs
• costs related to preparing the grant application

Grant Payments

Project Grant Payment Amounts Expert-in-Residence, Grant < $50,000 Project duration < 6 months 100% on execution of Grant agreement Expert-in-Residence, Grants >$50,000 Project duration < 12 months 6 monthly in advance based on forecasted eligible expenditure 10% on project completion New & Existing 6 monthly in advance based on forecasted eligible expenditure 10% on project completion

Reporting

Progress & Final Reports will cover:

• Milestones
• Contributions
• Eligible expenditure
• Component-specific questions

Reports due within four weeks of completion

• f a given milestone

Summary of Regional Changes

• increased grant percentage of up to 65 per cent for projects where at

least 80 percent of activities are being undertaken in a regional area

• the introduction of four Regional Incubator Facilitators to assist regional

applicants

• expansion of the Expert in Residence funding component to allow for
• utgoing experts to visit host incubators
• use of Public Data - Incubator Support will offer N&E grantees access to

public data, via DataStart program

• a new maximum grant amount for Expert in Residence project of

$100,000.

How to Apply

Applications opened on 14 December 2017 Read the Programme Guidelines available from business.gov.au/incubator-support Complete the online Incubator Support initiative application form on business.gov.au Address all eligibility and merit criteria Attach supporting documents

Further Information

Q&A

www.business.gov.au/incubator-support Incubator.support@industry.gov.au