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D2.8 Investment Landscape Mapping WP2 – Cross-border and cross-sectoral collaboration Authors: Staša Stojkov Rošić, Isidora Stojačić Date: 30.07.2020. research and innovation programme under grant agreement No 824478. This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement No 824478. D2.8 Investment Landscape Mapping Full Title Promoting the international competitiveness of European Remote Sensing companies through cross-cluster collaboration Grant Agreement 824478 Acronym PARSEC No Start date 1st May 2019 Duration 30 months EU Project Officer Milena Stoyanova Project Coordinator Emmanuel Pajot (EARSC) Date of Delivery Contractual July 2020 Actual July 2020 Nature R Dissemination Level Public Lead Beneficiary BIOS Lead Author Staša Stojkov Rošić Email [email protected] Isidora Stojačić (BIOS), Milana Barać (BIOS), Isidora Simović (BIOS), Mina Other authors Bjelica (BIOS), Dimitrije Mijatović (BIOS), Milica Milovanović (BIOS) Reviewer(s) Nico Thom (EVF) investment, opportunities, types of funding, public funding, private funding, Keywords pitching Document History Version Issue date Stage Changes Contributor 1.1 19.05.2020 Draft First TOC and division of tasks BIOS 1.2 12.06.2020 Draft First content input BIOS 1.3 16.06.2020 Draft Additional content input BIOS 1.4 08.07.2020 Draft Chapters revised; input added BIOS 1.5 15.07.2020 Draft First official draft finished BIOS 2.0 17.07.2020 Draft Review of the draft EVF 3.0 30.07.2020 Final Implemented feedback BIOS Disclaimer Any dissemination of results reflects only the author’s view and the European Commission is not responsible for any use that may be made of the information it contains Copyright message © PARSEC consortium, 2019 This deliverable contains original unpublished work except where clearly indicated otherwise. Acknowledgment of previously published material and of the work of others has been made through appropriate citation, quotation or both. Reproduction is authorised provided the source is acknowledged. Page 1 of 103 D2.8 Investment Landscape Mapping Table of Contents Executive Summary .................................................................................................................................. 4 1 Introduction ..................................................................................................................................... 6 2 Methodology .................................................................................................................................... 7 2.1 Aims, objectives and initial methodological approach ............................................................ 7 2.2 Methodological approach ........................................................................................................ 8 2.2.1 Secondary research .......................................................................................................... 8 2.2.2 Secondary research – methodology and research .......................................................... 8 2.2.3 Primary research/interviewing ...................................................................................... 10 3 Investment Landscape Mapping in the context of PARSEC ........................................................... 12 3.1 Support for innovation and funding opportunities ............................................................... 12 3.1.1 Insights from investors ................................................................................................... 16 3.2 Investment landscape during and after COVID-19 ................................................................ 17 3.2.1 Insights from investors ................................................................................................... 17 4 Funding Opportunities ................................................................................................................... 19 4.1 Funding and business stages .................................................................................................. 19 4.2 A review of funding methods ................................................................................................. 20 5 Public Funding ................................................................................................................................ 23 5.1 EU Grants ............................................................................................................................... 24 5.2 Financial instruments ............................................................................................................. 26 5.2.1 Competitiveness of Enterprises and SMEs (COSME) ..................................................... 27 5.2.2 InnovFin .......................................................................................................................... 27 5.2.3 The Executive Agency for SMEs (EASME) ...................................................................... 28 5.3 Accelerator and Incubator Programs ..................................................................................... 28 5.4 Horizon Prizes ........................................................................................................................ 29 5.5 Regional Funds ....................................................................................................................... 30 5.5.1 Structural Funds ............................................................................................................. 30 5.5.2 Vouchers ........................................................................................................................ 31 5.6 National Funds ....................................................................................................................... 31 5.6.1 Belgium .......................................................................................................................... 33 5.6.2 Serbia ............................................................................................................................. 33 5.6.3 Spain ............................................................................................................................... 33 5.6.4 Germany ......................................................................................................................... 34 5.6.5 Lithuania ......................................................................................................................... 35 Page 2 of 103 D2.8 Investment Landscape Mapping 5.6.6 Greece ............................................................................................................................ 36 5.6.7 Poland ............................................................................................................................ 36 6 Private Investment ......................................................................................................................... 38 6.1 Angel Investment ................................................................................................................... 38 6.2 Private Equity ......................................................................................................................... 40 6.3 Venture Capital ...................................................................................................................... 42 6.3.1 Difference between Private Equity and Venture Capital ............................................... 44 6.4 Accelerator Programs ............................................................................................................ 44 6.5 Debt Finance .......................................................................................................................... 45 6.6 Guidance to Private Investment ............................................................................................ 46 6.6.1 Insights from investors ................................................................................................... 46 6.6.2 Preparing a good pitch ................................................................................................... 47 6.6.3 Content of a good pitch deck ......................................................................................... 47 6.6.4 DOs and DONTs when approaching investors ............................................................... 48 7 Differences between Public and Private Funding .......................................................................... 50 8 Conclusion and Next Steps ............................................................................................................. 52 8.1 Conclusions ............................................................................................................................ 52 8.2 Next Steps .............................................................................................................................. 52 ANNEX 1 – Organizations that contributed to the interviews ............................................................... 53 ANNEX 2 – Interview Guide ................................................................................................................... 54 ANNEX 3 – Public Funding Opportunities .............................................................................................. 55 ANNEX 4 - Private Funding Opportunities ............................................................................................