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; • o a new division in an existing company o Establishment of an Australian office by an existing multinational enterprise o SMEs with a proven history and credit history capable of accessing finance
Aims of Incubator Support Impact: Local National Global New-to-Firm New-to-Market New-to-World Innovation 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.
Grant Funding Components New & Existing stream: $500,000 $26,000 24 months Expert-in-Residence stream: $100,000 $5000 12 months
Eligibility Must be an existing or new incubator • Have an Australian Business Number (ABN) • Be one of the following: • o an entity incorporated in Australia; o an incorporated trustee on behalf of a trust; o a not for profit organisation; o a publically funded research organisation (PFRO); or o 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: • o remote o inner regional o very remote o 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.
Funding Contributions- New & existing Major Cities Regional 15% 30% 10% 65% 50% 10% 10% 10% § Min. cash contribution § Max. in-kind contribution § Max. other government grant § Max. Incubator Support grant
In-kind Contributions • Non-cash contributions count towards a maximum of 10 per cent of your total project value • Justify calculation of all in-kind contributions • In-kind contributions can include; o third party staff salaries o access to facilities or services o 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 • o addressing merit criteria o 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 o 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 § Min. cash contribution § Max. in-kind contribution 30% § Max. other government grant § Max. Incubator Support grant 50% 10% 10%
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 < $50,000 100% on execution of Grant agreement Project duration < 6 months Expert-in-Residence , 6 monthly in advance based on forecasted Grants >$50,000 eligible expenditure Project duration < 12 10% on project completion months 6 monthly in advance based on forecasted eligible expenditure New & Existing 10% on project completion
Reporting Progress & Final Reports will cover: • Milestones • Contributions • Eligible expenditure • Component-specific questions Reports due within four weeks of completion of 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 • outgoing 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
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