Innovation Connect Guidelines
Introduction
Innovation Connect is an ACT Government competitive grant program that provides matched-funding support for smaller, technology focused startups and entrepreneurs to accelerate viable, innovative ideas along the commercialisation pathway.
From 2017, Innovation Connect will include a ‘Renewables Stream’ funded from the Renewable Energy Innovation Fund. This is a dedicated funding stream designed to support commercial opportunities within the renewable energy and cleantech sectors.
Application requirements and processes for the Innovation Connect Proof of Technology and Renewables Streams are the same. Grant applicants will need to indicate which grant stream they are applying to when they lodge their initial application.
Eligibility requirements
To be eligible for an Innovation Connect grant a business must have:
· an annual turnover of less than $2 million
· operations based in Canberra
· an Australian Business Number (ABN)
The business must also be prepared to enter into a formal agreement with the ACT Government. A sample can be found on the Innovation Connect webpage.
Activities Supported
Innovation Connect Grants can provide support for projects that prove the technical or commercial feasibility of a concept or technology.
· development of a product prototype
· development of functional software
· professional development of a formal marketing strategy
· professional market testing
· professional IP and patenting advice
· legal advice
NB: If the applicant proposes that these activities are to be undertaken by the applicant themselves or their employees, the activities must be fully costed at reasonable hourly rates and where possible, quotes of similar work from professional suppliers must be provided in order to demonstrate that the value of the activities claimed presents best value for money for the applicant and Innovation Connect funding.
Renewables Stream
To be considered for the Renewables Stream, the project must consist of technology or processes within the renewable energy and cleantech sectors, and may include technologies that use—or enable the use of—one or more renewable energy sources, such as wind and solar. Projects may occur across engineering, ICT, finance and social science, knowledge sharing across these domains, and the co-design of solutions.
These can include but are not restricted to:
· Energy generation science and engineering
· Energy storage science and engineering
· Energy generation asset management
· Distributed energy grid and market integration
· Solar and wind resource forecasting and mapping
What will not be Funded
Innovation Connect grant funding cannot support:
· business set up costs
· marketing and promotional activities
· printing of promotional material including brochures and business cards
· membership costs of industry organisations or groups
· website design
· third party business plan development
· travel or accommodation expenses
· the purchase of hardware, equipment or consumables not directly related to the prototype development
· expenses incurred prior to signing the Deed of Grant.
Assessment Criteria
Applications will be assessed against the extent to which they demonstrate that:
· the project develops a product that is genuinely innovative in that it has the potential to take advantage of new markets or disrupt existing markets. Renewables Stream applicants must also address commercial opportunities within the renewable energy and cleantech sectors, and may include technologies that use—or enable the use of—one or more renewable energy sources, such as wind and solar.
· the applicant has and/or can access the necessary expertise to deliver the project and continue to grow the business to achieve the longer term objectives stated in the application
· the applicant’s business growth as a result of the project will lead to Economic Development benefits for the ACT and region. Renewables Stream applicants should also note how the project will contribute to the ACT Government’s vision for the Territory as an export-oriented hub for renewable energy innovation and investment.
· there is a genuine need for the funding and that the project is less likely to be completed or will be significantly delayed without the funding.
The ACT Government may elect to progress applications that align to Government policies and programs.
Funding
Grants range from $5,000 to $30,000 in matched funding.
An application may receive funding under either Proof of Technology or the Renewables Stream, but not both.
Successful applicants may be awarded an amount other than the amount requested in the application. All Innovation Connect grants are awarded on a matched-funding basis. For example, an applicant awarded funding of $20,000 is required to also contribute $20,000 towards the project. The matched-funding component can comprise purchased goods and services, in-kind contributions (i.e. the value of the applicant’s work time) or both. Matched-funding contributions must occur during the funded project and not prior.
No more than $30,000 will be approved for funding to an applicant over a twelve month period.
Concurrent grants cannot be funded. The existing grant must be completed before another request for funding can be considered.
Market Ready Program
Successful applicant from either funding stream may also be offered training under the Market Ready Program, delivered by the CBR Innovation Network in partnership with Lighthouse Business Innovation Centre. The commercial value of this training is $5,000. The Innovation Connect Assessment Panel will recommend grantees that would benefit from the Market Ready Program. The ACT Government will meet the costs of participation in the Market Ready Program – it will not be drawn from the awarded grant funding.
Accommodation Support—Renewables Stream
Successful applicants under the Renewables Stream may also be offered free accommodation in the Renewables Innovation Hub for the duration of the funded activities under the grant.
Located in the heart of Canberra, the Renewables Innovation Hub is a highly flexible co-working space bringing together innovative start-ups and organisations across Australia and around the world to develop the ACT’s vibrant renewable energy and clean technology sectors. From 1-2 person start-ups to large multinationals, from wind, solar and storage companies through to investors, researchers and government, the Renewables Innovation Hub is the physical hub, the focal point for renewable energy innovation in the Territory and the birth-place of the next generation of renewable energy ideas and investment.
Application Process
Applications are assessed through a competitive, two stage process consisting of a Video Pitch and business model canvas submission at the Expression of Interest (EOI) stage and a more detailed application and face-to-face presentation at the Formal Application Stage.
An Innovation Connect Assessment Panel, comprised of independent experts rank the EOI’s and applications at both stages in conjunction with key ACT Government officials, making recommendations for funding to the ACTGovernment.
Key Dates
EOI Applications Open Monday 9 January 2017
EOI Applications Close 3pm Monday 27 February 2017
Notify applicants of outcome of EOI process Mid March 2017
Close of written applications Late April 2017
Panel Pitch Mid May 2017
EOI Process
- Submission of EOI, incorporating a video pitch and Business Model Canvas
- EOI’s assessed
- All applicants advised of the outcome of the EOI process. Applicants successful in reaching the formal application stage provided with access to the online Formal Application form
The video pitch must provide the information contained in the Entrepreneurs Pitch Guide, though not necessarily in the same order. Any video capture hardware or software can be used and the resultant video must be uploaded to a YouTube channel and the URL shared with Innovation Connect via the SmartyGrants application form. Video pitches need not demonstrate high production qualities. Only the content in the pitch will be assessed, not the quality of the video, the acting skills displayed or the images in it.
The Business Model Canvas is a means to provide further detail to support your video pitch and will assist the Innovation Connect Assessment Panel make an informed decision on which applications progress to the Formal Application stage.
Formal Application Process
After progressing through the EOI stage, selected applicants will be invited to complete a FormalApplication which includes detail on the market, competitors, external validation, economic benefits and financial projections. This process culminates with a pitch presentation to the Innovation Connect Assessment Panel.
- Submission of online Formal Application
- Face-to-face pitch with the Innovation Connect Assessment Panel
- Successful grant recipients notified and Deed of Grant entered into
Grant Payment
If deemed necessary to commence the project, a proportion of the approved funding may be paid in advance, upon the execution of a Deed of Grant between the grantee and the ACTGovernment. The amount of this advance payment amount will be determined by Client Managers on a case-by-case basis during the negotiation of the Deed of Grant. The advance payment cannot exceed 50 per cent of the total grant funding awarded.
Once advance payments have been expended, subsequent funding support will reimburse costs already incurred and is payable upon successful milestone completion. Innovation Connect Client Managers will work with the grantee to determine suitable milestones during the Deed of Grant negotiation process. The proposed date for each milestone must be achievable and the activity measurable. With costs to be reimbursed at the successful completion of milestones it is advised that applicants be mindful of cash flow when determining milestones.
Grantees are required to provide evidence of all expenditure (Innovation Connect and matching-contribution) such as receipts, paid tax invoices and bank statements. The evidence of expenditure must show that payment has been made. This can be supported by photographs, screenshots, diagrams and/or demonstrations where relevant. Timesheets will be required for all in-kind expenditure relating to the grantee’s or their employee’s professional services on the project.
Each milestone claim will require a written report of activities undertaken and outcomes achieved and must include suitable evidence of completion.
Innovation Connect Client Managers may inspect projects on-site throughout the project duration, including as part of the milestone verification process.
In-Kind support
Matched-funding refers to the grantee’s contribution to costs associated with the project that have not been funded by the Innovation Connect grant. Matched-funding expenditure is not bound by the same requirements as the Innovation Connect grant funding (refer ‘Activities Supported’) but matched-funding must occur during the term of the project. In addition, this matched-funding component of the project can include in-kind expenditure, where the grantee is not paying a third party for goods or services. This may be the salaries paid to business owners or employees for work on the project. This needs to be verified by a timesheet recording the activity conducted, hours claimed and the cost per hour.
In-kind salaries should be calculated on market rates for similar work and listed in the application. Listing high in-kind salaries for employees when the organisation has minimal revenue may be detrimental to the application’s chances of success.
Eligible in-kind support must be directly relevant to the activities and expenses of the proposed project and cannot refer to activities claimed as eligible expenses under the Innovation Connect funding component.
Further Information
If you require further information or assistance please contact the Innovation Connect Client Managers on:
Phone: (02) 6207 7215 or (02) 6205 1308
Email: or
Innovation Connect Frequently Asked Questions (FAQs)
Overview
These Frequently Asked Questions (FAQs) are intended to provide you with guidance and additional information on completing your Innovation Connect video pitch, Formal Application forms and managing your grant under the Innovation Connect grant program.
FAQs
Eligibility
I registered my business in the ACT but have since moved interstate am I eligible to apply?
No. Innovation Connect is an ACT Government initiative using tax-payer funds and there needs to be demonstrable benefits to the ACT and the local economy. Therefore the business needs to be based in the ACT with the project’s activities occurring in the ACT and surrounds.
Do I need to have an ABN to receive a grant?
Yes. An agreement between the ACT Government and successful grant recipients can’t be entered into unless the recipient has a registered business. For the ACT Government to pay successful grant recipients an ABN is required for taxation purposes. Applicants may submit evidence of an ABN application if confirmation of an ABN has not come through at the time of Innovation Connect application.
Assessment Criteria
What criteria is my application assessed against?
Applications will be assessed against the following criteria, (explanatory notes are in italics):
· the project develops a product that is genuinely innovative in that it has the potential to take advantage of new markets or disrupt existing markets
Innovation Connect is designed to maximise the benefits of the grant funding it issues by favouring products that are likely to grow a business rapidly due to a lack of immediate competition and may struggle to obtain funding from commercial sources due to the inherent risks in new products.
· the applicant has and/or can access the necessary expertise to deliver the project and continue to grow the business to achieve the longer term objectives stated in the application
An applicant who has access to the necessary expertise demonstrated through experience in related fields (domain expertise) will be more competitive in an Innovation Connect process.
· the applicant’s business growth as a result of the project will lead to Economic Development benefits for the ACT and region
See issues to consider when addressing this criteria under “Formal Application Content” below
· there is a genuine need for the funding and that the project is less likely to be completed or will be significantly delayed without the funding
Companies that are deemed to have access to capital or other resources (for example from a parent company) will be prioritised accordingly.
Application Process
Do I need to submit a video pitch?
Yes. The short 90 second video pitch that is created not only serves the purpose of applying for Innovation Connect funding, it assists the applicant to practice their pitching and produces basic content that the applicant will be able to use through other channels. Any video capture hardware and software can be used to produce a video, as long as the final product is uploaded to a YouTube channel and the URL referenced in the EOI application form. Only the content of the pitch and not the quality of the video, acting displayed or images used you will be assessed. Applicants that experience technical difficulties in producing a video are encouraged to contact Client Managers.