We accept applications until 18 November 2020 at 12:00 noon.

Innobooster Additional Grant During COVID-19

Supplementary appropriation for companies affected by the COVID-19 crisis and which had an active Innobooster per January 1, 2020.

Who?

Virksomheder, der havde en aktiv Innobooster pr. 1. januar 2020 eller som har ansøgt senere - dog senest den 1. april 2020.

What?

Companies that had an active Innobooster per 1 January 2020 or who has applied later - but no later than 1 April 2020.

How much?

Up to 20% of the original Innobooster grant.

If your company is affected by the COVID-19 crisis, and you have an existing grant with us, you now have the opportunity to apply for an additional grant to implement new activities.

 

The situation around COVID-19 has made it difficult for many companies – and there are particular challenges with the continued implementation of development activities in the companies and start-ups.

To help meet these challenges, companies can now apply for an additional grant of up to 20% of the initial grant for new activities in continuation of the original project.

You can apply if your company:

  • had an active Innobooster as of 1 January 2020

...or:

has applied for Innobooster later – however, by 1 April 2020 at the latest

You can apply for an additional grant starting Thursday, 7 May 2020.

Guidelines
Who can apply?

You can apply for an extension of your Innobooster project if:

  • Your Innobooster project has a project end date after 1 January 2020, and we have received your application for the Innobooster project no later than 1 April 2020.
     
  • You can render it probable that you need additional funding due to the situation around COVID19. For example, maybe the situation around COVID-19 has affected your development project or market situation, requiring changes, new development or market adjustment, etc.
     
  • There are outstanding development activities that may form the basis for an extension of the Innobooster project, hereunder activities that can support the commercialisation of the project. The general Innobooster scheme now allows for additional activities to be included in order to support the market position, and the additional grant may also be used for this purpose. See the updated guidelines at www.innovationsfonden.dk.
     
  • You do not receive any other public support to fund the additional activities of the Innobooster project. This includes, for example, other funding from Innovation Fund Denmark, including Innofounder, or from some of the public compensation schemes initiated to mitigate the economic impact of the COVID19 crisis.

 

Terms of extension
  • You can apply for an additional grant of 20% of the original grant with the same grant percentage and the same set of rules as the original Innobooster grant. For example, if you received DKK 500,000 in grants from Innobooster, you can apply for an additional 20%, corresponding to a grant of DKK 100,000. The requirement is that you add a short additional project with a gross value of DKK 303,000 (the normal grant percentages of up to 33% will still be applied).
     
  • The budget: The breakdown of budget items shall not follow the breakdown of the original application, but must be budgeted in continuation of the application's activity plan in accordance with the general guidelines of the Innobooster scheme and inserted in the budget form.
     
  • The project may last for a maximum of 12 months
     
  • Accounts, accounting principles and other matters are in accordance with the updated guidelines for Innobooster of 7 May 2020.
Allocation basis
Establishment aid

This particular pool of funds that shall ensure the continued development of your Innobooster project is implemented within the framework of EU State subsidy rules. In this particular situation, the starting point is the EU Commission's rules on establishment aid:

Establishment aid may be given to companies established within the last five years, based on the date of registration of the company in the CVR register. The company must not have taken over another company's activity, distributed profits or entered into a merger. If the company is part of a group of companies, the date of registration of the oldest company in the group shall define the time of establishment.

In addition, at the time of application, the company (or the group of companies, of which the company may be a part) must have less than 50 employees and 1) a balance sheet of less than EUR 10 million (approx. DKK 75 million) or 2) a turnover of less than EUR 10 million (approx. DKK 75 million).

Budgeting of the activities in this project is basically an hourly rate of DKK 750 plus possible direct costs to the knowledge provider and/or materials and equipment. The use of the establishment aid option is independent of whether the former Innobooster was granted under the de minimis rules or the State Aid Exemption Regulation – industrial research or experimental development.

If you are unable to use the establishment aid scheme because you do not meet the criteria, you may be able to use the de minimis Regulation:

The de minimis Regulation

The de minimis Regulation: If, overall, your company has not received de minimis aid totalling EUR 200,000 (about DKK 1,500,000) in the current financial year and the two previous financial years, you may apply under the de minimis Regulation. (See Innobooster guidelines for additional issues regarding the de minimis Regulation.)

Under the de minimis Regulation, you can use the same budgetary principles that you used in your previous Innobooster, including an hourly rate of DKK 750 as well as possible direct costs to the knowledge provider and/or materials and equipment.

Use of the de minimis Regulation is independent of whether the former Innobooster was granted under the de minimis or the block exemption – industrial research or experimental development. The important thing is that there is ‘air’ up to your overall ceiling of the de minimis, including the budget used in the application for this project. If your company is part of a group of companies, the de minimis ceiling of maximum EUR 200,000 (approx. DKK 1,500,000) applies to the entire group.

If you cannot use any of the above two aid regulations, you may be able to use:

Group exemption – experimental development or industrial research

If you cannot take advantage of the above options, you have the option to use the group exemption scheme – experimental development or industrial research.

Here the budget rules are different: You must budget with direct costs for wages etc. as well as possible direct costs to the knowledge provider and/or materials and equipment. The activities must take place within the definitions of industrial research and experimental development.

You should also be aware that under this Regulation, you must be able to declare that the company is ‘not undergoing a crisis’, cf. the EU Regulation's definition of ‘undertaking in difficulty’ in Article 2 (18) of the Commission’s Regulation (EU) No. 651/2014 of 17 June 2014. See also detailed notes in the Innobooster guidelines.

Application
How do you apply?

The application is submitted as an application for a change request under your original grant number, e.g. (9071-00xxxB). Application and processing are ongoing, and the scheme is open until 15 November 2020. However, the scheme may close before 15 November 2020, if the amount allocated to the scheme is exhausted ahead of time.

If you are eligible to apply, but your original Innobooster grant has been completed (you final report has been approved, etc.), please send an email to innobooster@innofond.dk with your case number, and we will reopen your grant so you can apply for an additional grant.

Reporting: You must prepare financial accounts in accordance with the applicable Innobooster guidelines.

Documents

Do you have questions?
Contact Innobooster’s hotline at +45 6190 5005 on weekdays between 9 and 12 or send an email to Innobooster@innofond.dk

Project
What requirements do we have for the project?
  • News value
    The company must launch new development activities and the result of the project must be clearly different from what is otherwise on the market today.
     

  • Value creation and business potential
    The company must make it probable that it can gain a significant competitive advantage and in the long run make money on the solution.
     

  • Implementation
    It must be clear which specific activities are to take place in the project, which specific results the company will be involved in after the project, and what these are to be used for. In addition, the company must have both a team with the right competencies and the necessary financial resources to complete the project successfully.

  • Economic efficiency
    The project must be budgeted realistically and the desired investment must be commensurate with the expected business gain and the project's risk.

How long must the project last?

 

Up to 2 years.

What can the money finance?
  • Salary for both new and existing employees.
     

  • Knowledge and services from knowledge providers, Danish and foreign (eg universities, GTS institutes, contract research institutes, private development houses, etc.).
     

  • Materials and equipment necessary for the project.

What are we not investing in?

Routine initiatives such as establishment, general operations and operational optimization, strategy development, marketing or communication.

We also do not invest in initial feasibility studies or other expenses that are considered completely initial to determine if there is a business potential. We expect this to be done before applying.

Application
How do I apply?

Applications must be generated and submitted via the online application portal E-grant.

The application must contain:

  • Administrative description (form in E-grant)
  • Professional description (template)
  • Budget (template)

You can prepare your application in Danish or English. However, the application form is in Danish only.

The application form will be uploaded when applying via E-grant.

Example of budget form. You will access the correct budget form when applying through E-grant.

Documents
When can I submit an application?

We receive and process applications on an ongoing basis, but we take summer and winter breaks where we do not accept new applications.

When will I receive a response to my application?

Within a month.

However, you should expect a longer processing time if you submit your application right before a summer or winter break, as we typically receive an unusually large number of applications just before a break.

You will be notified of the decision via E-grant as well as in an e-mail to the e-mail address you have provided.

If you are looking for a grant of more than DKK 500,000, and we consider it to be an interesting project, you will be invited to make a pitch to an expert panel who will make the final decision on your project.

The total processing time will then be 2-3 months.

Who will be processing my application?

Your application will be processed by two employees of Innovation Fund Denmark who have the right skills to evaluate your project.

Applications above DKK 500,000 which Foundation Fund Denmark finds interesting will be invited to present the project to an investment panel consisting of innovation experts.

See who is on the investment panel.

 

What does external capital mean?

We define external capital as capital provided to the company by external parties without any required collateral. This capital may come from new investors who inject money into the company, or from funds invested by the public or private sector in specific development activities in the company.

External capital does not include equity, capital injected by the company's primary owners or loans where collateral is required, e.g. bank loans, overdraft facilities, etc.

How many applications may I submit?

Only one application is allowed for processing at a time.

This applies both to the CVR number and to the contact person on the application.

If you have been rejected, you may reapply, and if approved, you may also apply again in connection with a new project at a later date.

You may receive InnoBooster several times.

It will be beneficial to split up large projects with natural milestones. It is important that you have achieved results demonstrating commercial value in the previous InnoBooster project if you are applying for a follow-up InnoBooster.

Tips about your application

Be specific in your description regarding novelty value and business potential.

We receive too many applications that are not sufficiently specific and use many general concepts and positive terms that do not go adequately in depth.

Here are a few examples of statements that are worth elaborating on in your application:

‘The product is brand new/innovative and never seen before’

- Instead, explain to us what the solution consists of and how it works. Which solutions in the market are similar to yours, or what do users use at the moment if your solution does not exist yet? Based on the description, we must be able to assess whether we believe the novelty value is sufficiently high.

‘There are competitors, but we are better/more user-friendly/more innovative’

- Instead, explain to us who the competitors are, what they do and what you do? Why is your solution preferable/what is the added value for the customers? Are they willing to pay more for this added value, and if so, how much? We need to know this to be able to assess whether the solution is sufficiently different.

‘We have an MVP (or a prototype) and are going to develop the next version’

 - Instead, tell us about your current product, what can it do now and what remains to be developed? There is a big difference between what people mean by MVP and prototype – is it a mock-up or are there already functionalities?

‘We have seen a great deal of interest from many potential customers’

 - Instead, explain to us who the customers are and who you have talked to? What did they say? Is this a matter of polite interest, or is there already a conditional purchase agreement? What is the scope of the orders from these customers, and what is the price?

‘If we get just 5% of the market, our annual turnover will be DKK 50,000,000, and we consider this to be a conservative estimate’

- Instead, explain to us what you base your assumptions on? How many customers do you already have, and why will this project increase your market share or convert your current users into paying customers? How is the price calculated and has it been validated by potential users? What is your go-to-market strategy and what are the indications that there will be a demand for your product?

My application was rejected - what now?

The decision on the application will include one or more rejection grounds.

The business hubs have consultants who can help you further and possibly spar with you about the possibility of re-application.

 

The course of the project
I have received a grant – should I do something?

You have received a grant letter via E-grant. Read it carefully as it contains relevant information about the process. In addition, the company must submit an acceptance form regarding the grant which is found at the top of the grant page under E-grant tasks.

When and how can I upload my budget?
  • You will receive an email from E-grant at the expiration of a three-month period. Then you can start filling out your financial accounting form. You will not be able to start on this until you receive an email from us, stating that there is a task for you.
     
  • Every three months (from the start of the project), interim financial accounts shall be submitted via E-grant. A standardised financial accounting form is used, downloaded via e-grant.dk.
How do I document the project expenses?

There are slightly different conditions for this, depending on, amongst other things, the time and size of the grant. It is common to all grants, however, that the costs of knowledge providers and other expenses must be documented by an invoice issued to your company's CVR number.

Projects concerning a grant of more than DKK 500,000 must also submit an auditor's statement for each project year. Read more about the specific requirements for documentation of expenses in your grant letter.

When can I expect a pay-out?

The grant is paid out in arrears and will be effected based on the submitted financial accounts. Our grant department strives to process submitted financial accounts within one month. In addition, the pay-out may take up to 10 days. If there are errors in the financial accounts, you will be notified via e-grant.dk, and you must then correct the errors and resubmit your financial accounts.

There are changes to the project – how do I inform Innovation Fund Denmark?

If there are significant changes to the approved project, Innovation Fund Denmark must be informed. You can submit requests for re-budgeting or other changes via E-grant. This is done on the grant page under ‘action’, where you will also find a guide in this respect.

I need to submit a progress presentation – what is that?

For grants over DKK 500,000, a mid-term meeting will be held halfway through the project. Via E-grant you must submit a presentation that provides a status on the project in relation to the original project plan. Your contact person on the InnoBooster team will then contact you and schedule a meeting where you will review the progress of the project.

Project completion – how do I report?

Upon finalisation of the project, a final financial account must be submitted, where it is also possible to request the final pay-out of the remaining 15% of the grant which has been withheld. In addition, an evaluation must be completed and there must be a final presentation of the project progress and results, which will be submitted via E-grant. The requirements for the presentation can be found in your grant letter.

Will my project be published?

By applying, you agree that we may publish title, master data (e.g. company name) and decision (received InnoBooster or not). We do not publish business sensitive information and will always enter into a dialogue with you if, e.g. as the result of a request for access to documents, there might be a subsequent request for information regarding other parts of your application.

Contact
Innobooster

Innobooster hotline
Open Monday to Friday 9-12 AM
Phone: +45 6190 5005

mail: Innobooster@innofond.dk

Tecnical questions about e-grant
Hotline open 9 – 12 AM

Phone: +45 3392 9190

Email: support.e-grant@ufm.dk