We will select 2 AIPs. Each AIP will be allocated £1 million, which they will hold on behalf of Innovate UK for the purposes of this programme.
If selected, you will use this funding to distribute grants to SMEs to fund innovative R&D projects. The SMEs must receive at least the same amount in new private investment from your angel investors and associated investors. The grant allocation must be fully committed within 2 years of the agreed start date.
Individual projects funded through the AIP must be run by an SME and have a total project cost of between £40,000 and £300,000. Only projects assessed as fundable by Innovate UK’s independent assessment process will be eligible to receive grant funding through the AIP.
Innovate UK will fund up to 50% of eligible project costs. Private investors must invest at least the same amount into the SME. At least 50% of this private investment must be from angel investors.
Investment management fees will be drawn from the £1 million allocation and will include:
- assessment costs for each SME application
- monitoring costs for each funded project
- AIP fees for delivering the service
(Text update 2 Nov 2018: we have simplified the last bullet point above to remove the reference to schedule 2 of the allocation agreement as we felt this was confusing.)
As a result, the amount allocated to grant funding for R&D activities by SMEs will be less than the overall funding amount of £2 million.