Funding competition Combined Investor Partnerships Round 12

UK registered SMEs can apply for grant funding alongside private investment from selected investor partners.

• Competition opens: Friday 7 July 2023
• Competition closes: Wednesday 30 August 2023 11:00am

This competition is now closed.

Competition sections

Description

Innovate UK, as part of UK Research and Innovation, has selected investor partners to work with. They have demonstrated the credibility, capability, capacity and appetite to invest in innovative, technology-led businesses in areas that align with our objectives in programme areas. The investor partners will work with Investor partnership programmes to bring together:

• Innovate UK’s expertise in identifying innovation and using grant funding to change the risk profile of businesses
• investor partners’ aligned funding and expertise in identifying opportunities and teams that can best use extra investment finance

This approach gives your business access to the capital investment it needs to develop and commercialise your innovations.

The investor partners will work with Innovate UK to invite innovative businesses to apply for grant funding alongside their investment.

These are the eligible investor partnership programmes and the associated investor partners in this round:

• Ageing Society Grand Challenge Investment Partnerships: Northstar Ventures
• Clean Growth Innovation Fund: EQUANS

To be eligible for this competition you must be invited to apply by one of the investor partners. Guidance will be provided with the invite from the investor partner on the specific scope and eligibility requirements for the programme they are supporting.

To be successful, your project must be both, independently assessed by Innovate UK as fundable and receive investment from the investor partner.

In applying to this competition, you are entering into a competitive process. The competition closes at 11am UK time on the deadline stated.

Funding type

Investor Partnerships

Project size

Each investor partnership has an agreed range of total project costs. Your introducing investor partner will discuss this with you and inform you if your proposal is eligible.

Who can apply

Your project

The eligibility criteria will depend on which investor partnership programme you are applying to. Each investor partnership programme has one or more investor partners who may consider investing in your business alongside the grant funding for your project. You must be invited by the investor partner you plan to work with to apply for this competition.

The investor partner will provide the additional eligibility criteria for your application in writing, but the following rules apply to all applications.

The introducing investor partner will inform you of:

• the latest date for the start of your project
• the latest date for the end of your project
• the minimum and maximum duration of your project

You must only include eligible project costs in your application.

Under current restrictions, this competition will not fund any procurement, commercial, business development or supply chain activity with any Russian and Belarusian entity as lead, partner or subcontractor. This includes any goods or services originating from a Russian and Belarusian source.

If your total project’s costs or duration falls outside of our eligibility criteria, your investor partner must provide justification by email to support@iuk.ukri.org at least 10 working days before the competition closes. We will decide whether to approve your request.

If you have not requested approval or your application has not been approved by us, you will be made ineligible. Your application will then not be sent for assessment.

Your organisation

This competition is open to single applicants only. To apply your organisation must:

• be a UK registered micro, small or medium sized business (SME)
• carry out its project work in the UK
• intend to exploit the results from or in the UK
• be invited to apply by your investor partner
• have discussed and agreed your proposal with your investor partner before submitting

For more information on company sizes, please refer to the company accounts guidance.

Subcontractors

Subcontractors are allowed in this competition.

Subcontractors can be from anywhere in the UK and you must select them through your usual procurement process.

You can use subcontractors from overseas but must make the case in your application as to why you could not use suppliers from the UK.

You must provide a detailed rationale, evidence of the potential UK contractors you approached and the reasons why they were unable to work with you. We will not accept a cheaper cost as a sufficient reason to use an overseas subcontractor.

All subcontractor costs must be justified and appropriate to the total project costs.

Number of applications

You can only be invited to submit one application into this round of the competition by your investor partner.

Previous applications

You can use a previously submitted application to apply for this competition.

We will not award you funding if you have:

• failed to exploit a previously funded project
• an overdue independent accountant’s report
• failed to comply with grant terms and conditions

Subsidy control (and State aid where applicable)

This competition provides funding in line with the Subsidy Control Act 2022. Further information about the Subsidy requirements can be found within the Subsidy Control Act 2022 (legislation.gov.uk).

Innovate UK is unable to award organisations that are considered to be in financial difficulty. We will conduct financial viability and eligibility tests to confirm this is not the case following the application stage.

EU State aid rules now only apply in limited circumstances. Please see our general guidance to check if these rules apply to your organisation.

Further Information

If you are unsure about your obligations under the Subsidy Control Act 2022 or the State aid rules, you should take independent legal advice. We are unable to advise on individual eligibility or legal obligations.

You must always make sure that the funding awarded to you is compliant with all current Subsidy Control legislation applicable in the United Kingdom.

This aims to regulate any advantage granted by a public sector body which threatens to, or actually distorts competition in the United Kingdom or any other country or countries.

Funding

Each investor partner has an agreed allocation of Innovate UK funding that can be used to provide support to innovation projects in this competition.

Innovate UK will decide which projects are eligible and in scope to receive grant funding.

The investor partner will inform you how much funding remains available after existing commitments.

If you are successful you will receive:

• grant funding to cover a proportion of the costs of your project
• investment in your business with the investor partner acting as the lead investor

Each programme will specify minimum amounts of investment that must be aligned to the level of the grant funding. Your investor partner will make you aware of these.

Your business must have sufficient capital resources, including through investment from the investor partner and the grant funding, to enable you to meet all your projects eligible costs.

All recipients must act commercially, and your funding request must not exceed the limits specified for the category of research for your project.

You must confirm with your investor partner the maximum percentage of funding that is available. If your application exceeds the maximum grant level, then it will be rejected. In all cases the investment from investor partners must always be at least equal to the grant funding.

Feasibility studies and industrial research projects

The amount of funding available as a percentage of eligible project cost for feasibility studies and industrial research projects is specific to the investor partner programme.

Typically Innovate UK will fund up to 70% of eligible project costs for feasibility studies and industrial research projects. For some programmes funding will be limited to 50% of project costs.

Experimental development projects

Innovate UK will fund up to 45% of eligible project costs for experimental development projects for micro or small organisations and up to 35% for medium sized organisations.

Your proposal

The scope for your application will depend on which investor partnership programme you are applying for. Your investor partner will review your proposed project application and only invite you to apply if they believe it to be in scope. Please contact them early to begin discussions.

Research categories

As defined in the guidance on categories of research, we will fund:

• feasibility studies
• industrial research
• experimental development

Projects we will not fund

We are not funding projects that are:

• not carried out by SMEs
• collaborative research and development (R&D) projects
• not part of a company’s growth plan
• unable to prove there is potential for return on investment and growth
• large capital infrastructure
• not invited by a specified investor partner

We cannot fund projects that are:

• dependent on export performance, for example giving a subsidy to a baker on the condition that it exports a certain quantity of bread to another country
• dependent on domestic inputs usage, for example giving a subsidy to a baker on the condition that it uses 50% UK flour in their product

• 7 July 2023: Competition opens
• 30 August 2023 11:00am: Competition closes
• 6 October 2023 4:09pm: Applicants notified

Before you start

You must read the guidance on applying for a competition on the Innovation Funding Service before you start.

Before submitting, it is the lead applicant’s responsibility to make sure:

• that all the information provided in the application is correct
• your proposal meets the eligibility and scope criteria
• all sections of the application are marked as complete

You can reopen your application once submitted, up until the competition deadline. You must resubmit the application before the competition deadline.

What we ask you

The application is split into 3 sections:

1. Project details.
2. Application questions.
3. Finances.

Accessibility and inclusion

We welcome and encourage applications from people of all backgrounds and are committed to making our application process accessible to everyone. This includes providing support, in the form of reasonable adjustments, for people who have a disability or a long-term condition and face barriers applying to us. Watch the video on how we are making our application process more accessible and inclusive for everyone.

You must contact us as early as possible in the application process. We recommend contacting us at least 15 working days before the competition closing date to ensure we can provide you with the most suitable support possible.

You can contact us by emailing support@iuk.ukri.org or calling 0300 321 4357. Our phone lines are open from 9am to 5pm, Monday to Friday (excluding bank holidays).

1. Project details

This section provides background for the assessors and is not scored.

Application team

Decide which organisations will work with you on your project and invite people from those organisations to help complete the application.

Application details

Give your project’s title, start date and duration.

Research category

Select the type of research you will undertake.

Project summary

Describe your project briefly and be clear about what makes it innovative. We use this section to assign the right experts to assess your application.

Your answer can be up to 400 words long.

Public description

Describe your project in detail and in a way that you are happy to see published. Do not include any commercially sensitive information. If we award your project funding, we will publish this description. This could happen before you start your project.

Your answer can be up to 400 words long.

Scope

Describe how your project fits the scope of the competition. If your project is not in scope it will not be sent for assessment. We will tell you the reason why.

Your answer can be up to 400 words long.

2. Application questions

The assessors will score your answers to questions 4 to 13, questions 1, 2 and 3 are not scored. You will receive feedback for each scored question. Find out more about how our assessors assess and how we select applications for funding.

You must answer all questions. Your answer to each question can be up to 400 words long. Do not include any website addresses (URLs) in your answers.

Question 1. Applicant location (not scored)

You must state the name and full registered address of your organisation and any subcontractors working on your project.

We are collecting this information to understand the geographical location of all applicants.

Question 2. Programme (not scored)

Which partnership programme are you applying for?

Select from:

• Ageing Society
• Clean Growth

Question 3. Investor partner (not scored)

Provide the name of the investor partner who has invited you to apply.

Please note that the investor partner will also notify us who they have invited.

Question 4. Need or challenge

What is the business need, technological challenge or market opportunity behind your innovation?

Explain:

• the main motivation for the project
• the business need, technological challenge or market opportunity
• whether you have identified any similar innovation and its current limitations, including those close to market or in development
• any work you have already done to respond to this need, for example if the project focuses on developing an existing capability or building a new one
• the wider economic, social, environmental, cultural or political challenges which are influential in creating the opportunity, such as incoming regulations, using our Horizons tool if appropriate

Question 5. Approach and innovation

What approach will you take and where will the focus of the innovation be?

Explain:

• how you will respond to the need, challenge or opportunity identified
• how will you improve on the similar innovation that you have identified
• whether the innovation will focus on existing technologies in new areas, the development of new technologies for existing areas or a totally disruptive approach
• the freedom you have to operate
• how this project fits with your current product, service lines or offerings
• how it will make you more competitive
• the nature of the outputs you expect from the project, for example report, demonstrator, know-how, new process, product or service design, and how these will help you to target the need, challenge or opportunity identified

You can submit one appendix to support your answer. It can include diagrams and charts. It must be a PDF, up to 2 A4 pages long and no larger than 10MB in size. The font must be legible at 100% zoom.

Question 6. Team and resources

Who is in the project team and what are their roles?

Explain:

• the roles, skills and experience of all members of the project team that are relevant to the approach you will be taking
• the resources, equipment and facilities needed for the project and how you will access them
• the details of any subcontractors, who you will need to work with to successfully carry out the project
• any roles you will need to recruit for

You can submit one appendix with a short summary of the main people working on the project to support your answer. It must be a PDF, up to 4 A4 pages long and no larger than 10MB in size. The font must be legible at 100% zoom.

Question 7. Market awareness

What does the market you are targeting look like?

Explain:

• the target markets for the project outcomes, any other potential markets (domestic, international or both)
• the size of the target markets for the project outcomes, backed up by references where available
• the structure and dynamics of the target markets, including customer segmentation, together with predicted growth rates within clear timeframes
• the target markets’ main supply or value chains and business models, and any barriers to entry that exist
• the current UK position in targeting these markets
• the size and main features of any other markets not already listed

If your project is highly innovative, where the market may be unexplored, describe or explain:

• what the market’s size might be
• how your project will try to explore the market’s potential

Question 8. Outcomes and route to market

How are you going to grow your business and increase your productivity into the long term as a result of the project?

Explain:

• your current position in the markets and supply or value chains outlined, and whether you will be extending or establishing your market position
• your target customers or end users, and the value to them, for example why they would use or buy your product
• your route to market
• how you are going to profit from the innovation, including increased revenues or cost reduction
• how the innovation will affect your productivity and growth, in both the short and the long term
• how you will protect and exploit the outputs of the project, for example through know-how, patenting, designs or changes to your business model
• your strategy for targeting the other markets you have identified during or after the project

Question 9. Wider impacts

What impact might this project have outside your organisation?

Describe and, where possible, measure the economic benefits from the project such as productivity increases and import substitution, to:

• external parties
• customers
• others in the supply chain
• broader industry
• the UK economy

Describe and, where possible, measure:

• any expected impact on government priorities
• any expected environmental impacts, either positive or negative
• any expected regional impacts of the project

Describe any expected social impacts, either positive or negative on, for example:

• quality of life
• social inclusion or exclusion
• jobs, such as safeguarding, creating, changing or displacing them
• education
• public empowerment
• health and safety
• regulations
• diversity

Question 10. Project management

How will you manage your project effectively?

Explain:

• the main work packages of your project, indicating the lead partner assigned to each and the total cost of each one
• your approach to project management, identifying any major tools and mechanisms you will use to get a successful and innovative project outcome
• the management reporting lines
• your project plan in enough detail to identify any links or dependencies between work packages or milestones

You must submit a project plan or Gantt chart as an appendix to support your answer. It must be a PDF, up to 2 A4 pages long and no larger than 10MB in size. The font must be legible at 100% zoom.

Question 11. Risks

What are the main risks for this project?

Explain:

• the main risks and uncertainties of the project, including the technical, commercial, managerial and environmental risks
• how you will mitigate these risks
• any project inputs that are critical to completion, such as resources, expertise and data sets
• any output likely to be subject to regulatory requirements, certification, ethical issues and so on, and how you will manage this

You must submit a risk register as an appendix to support your answer. It must be a PDF, up to 2 A4 pages long and no larger than 10MB in size. The font must be legible at 100% zoom.

Question 12. Added value

How will this public funding help you to accelerate or enhance your approach to developing your project towards commercialisation? What impact would this award have on the organisations involved?

Explain:

• what advantages would public funding offer your project, for example, impact on securing this investment, more partners, reduced risk or a faster route to market, (this list is not exhaustive)
• the likely impact of the project outcomes on the organisations involved
• what other routes of investment have you already approached
• what your project would look like without public funding
• how this project would change the R&D activities of all the organisations involved

Question 13. Costs and value for money

How much will the project cost and how does it represent value for money for the team and the taxpayer?

In terms of your project goals, explain:

• your total project costs
• the grant you are requesting
• how each partner will finance their contributions to your project
• how this project represents value for money for you and the taxpayer
• how it compares to what you would spend your money on otherwise
• the balance of costs and grant across the project partners
• any subcontractor costs and why they are critical to your project

3. Finances

You must complete your own project costs, organisation details and funding details in the application.

For full details on what costs you can claim see our project costs guidance. You can also view our Application Finances video.

Support for SMEs from Innovate UK EDGE

If you receive an award, you will be contacted about working with an innovation and growth specialist at Innovate UK EDGE. This service forms part of our funded offer to you.

These specialists focus on growing innovative businesses and ensuring that projects contribute to their growth. Working one-to-one, they can help you to identify your best strategy and harness world-class resources to grow and achieve scale.

We encourage you to engage with EDGE, delivered by a knowledgeable and objective specialist near you.

Next steps

If you are successful with this application, you will be asked to set up your project.

You must follow the unique link embedded in your email notification. This takes you to your IFS Set Up portal, the tool that Innovate UK uses to gather necessary information before we can allow your project to begin.

You will need to provide:

• the name and contact details of your project manager and project finance lead
• a redacted copy of your bank details
• an exploitation plan

In order for us to process your claims, you must make sure you have a valid UK bank account. It is possible that it can take several weeks for a new account to be created. We would recommend starting this process as early as possible to avoid any delays to you project start date.

The bank details you give to us must relate to a UK high street bank that is regulated by the Prudential Regulation Authority (PRA). The account must have a BACS clearing facility and be in the same company name as your application.

If you have any doubts that your bank account will not meet Innovate UK's funding criteria, you can use the sort code checker. If you input the sort code and find a tick next to the ‘BACS Direct Credit payments can be sent to this sort code’, this will give you an indication that the bank account you hold is acceptable.

Finance checks

We will carry out checks to make sure you are an established company with access to the funds necessary to complete the project.

You must check your IFS portal regularly and respond to any requests we have sent for additional information to avoid any delays.

Failure to complete project setup may result in your grant offer being withdrawn.

Your Grant offer letter (GOL)

Once you have successfully completed project setup, we will issue your GOL.

The GOL will be made available on your IFS portal. The project cannot start until:

• you have signed and uploaded your confirmation
• the investor has confirmed their investment by completing and returning the relevant sections of annex 2 of the GOL
• confirmation that the investment meets the obligations of the aligned investment

Your GOL will show the start date for your project and will be confirmed by the project set up team. Do not start your project before this date. Any costs incurred before your start date cannot be claimed as part of your grant.

If your application is unsuccessful

If you are unsuccessful with your application this time, you can view feedback from the assessors. This will be available to you on your IFS portal following notification.

Sometimes your application will have scored well, and you will receive positive comments from the assessors. You may be unsuccessful as your average score was not above the funding threshold or your project did not fit within the portfolio approach if this is applied for this competition.

Contact us

If you need more information about how to apply or you want to submit your application in Welsh, email support@iuk.ukri.org or call 0300 321 4357.

Our phone lines are open from 9am to 5pm, Monday to Friday (excluding bank holidays).

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