Unlocking Innovation and Funding Opportunities: Insights from the Innovation Center in Madrid

Lani Sánchez, responsible for programs and activities at La Nave Innovation Center in Madrid, welcomes participants to a webinar. La Nave is a 13,000 square meter space dedicated to fostering innovation, technology, and entrepreneurship. It has three strategic lines: La Nave Forma for knowledge acquisition, La Nave Conecta for networking events, and La Nave Acelera for program development.

An invitation is extended to join the Sprint program, focusing on solving identified challenges over a 5-week period. Participants are encouraged to register, especially if their projects align with sectors like Smart Cities, sustainability, bioeconomy, circular economy, fintech, retail, tourism, and hospitality.

The target audience includes citizens, students, and startups. Programs range from incubation for idea development to acceleration for viable products. Special programs cater to women entrepreneurs. Professionals and corporations are also part of the ecosystem, collaborating to address identified challenges.

La Nave has hosted over 479,000 attendees, facilitated over 700 million euros in startup investments, and conducted more than 8,900 activities. Notably, over 101,000 individuals have been trained in various programs, with 75 long-term programs, 8,100 media impacts, and 638 major events. The center has also formed over 2,800 partnerships.

The organization has had 918 national and 313 international representations in fairs and events. Additionally, they have conducted 30 editions of programs aimed at startups, showcasing the maturity levels of these startups. They invite participation in their community, offering valuable training and activities. The registration for the Sprint program is currently open.

The webinar marks the fifth year of its occurrence, with Marina discussing the keys to preparing a successful proposal. The event is organized by Nave and CEDETI, featuring speakers like Juan Luis Romero and Ailin Isabel Caruana. The agenda includes presentations by various experts and interactive sessions for attendees to ask questions.

INCOM is part of the multidisciplinary professional services firm PKF Ates, established in 1990 and ranked in the top 10 of professional service firms. With over 700 professionals across 11 Spanish cities, INCOM focuses on aiding companies in their global financial planning, securing funding through various projects and incentives at local, regional, national, and European levels. Their personalized consultancy approach emphasizes quality over quantity, leading to high success rates and client satisfaction.

Juan Luis Romero from CEDETI expresses gratitude for the opportunity to participate in the webinar. He shares insights on the organization's involvement and contributions to the event, highlighting the importance of collaboration and knowledge sharing in such platforms.

The CDTI, or Centro para el Desarrollo Tecnológico Industrial, is a public entity created in 1977 under the Ministry of Science and Innovation and Universities. It focuses on promoting business innovation, with the majority of its funding aimed at companies. The CDTI offers various types of financial support, including partially reimbursable grants, subsidies for business plans, investments in companies through venture capital, and innovative public procurement programs.

NEOT is a grant program for recently established innovative technology-based companies. It has evolved over two phases: from 2003 to 2014, it was based on a percentage of profits to be repaid based on cash flow, while from 2015 onwards, it shifted to a non-repayable grant model. As of the latest data, 966 technology-based startups have benefited from NEOT grants. The program prioritizes new entrepreneurial projects with a research-based activity and encourages the involvement of individuals with a doctoral degree.

The NEOT 2024 convocation has been recently published on the National Subsidies Database. It offers funding for new innovative business projects with a research focus, particularly favoring the inclusion of individuals holding a doctoral degree. The program has seen significant success, with nearly a thousand technology-based startups benefiting from its support in recent years.

The speaker highlights that the current call for proposals is not aimed at Neotec projects, which are business ventures focused on providing services to third parties without developing their own technology. Instead, the emphasis is on innovative companies that demonstrate a clear plan for technology development and diversification.

The application period for the call opens on April 10th and closes on May 10th at noon. Eligible beneficiaries must be innovative companies with a track record of technological development, small in size, and meeting specific financial and operational criteria outlined in the order.

To access the budget reserve for projects led by women, companies must meet specific criteria such as having a management team predominantly composed of women and ensuring women hold a majority stake in the company. The minimum budget for the grant is 175,000 euros, with funding covering up to 70% of eligible costs, reaching a maximum of 250,000 euros. Additional funding is available for projects involving doctors, with a maximum grant of 325,000 euros.

The grants offered are in the form of subsidies, with no specific thematic restrictions. The funding can cover up to 85% of eligible costs, with a maximum grant of 325,000 euros. Additionally, there is an option for an advance payment of up to 60% of the total grant, capped at 150,000 euros. Furthermore, the top 20 projects may receive training valued at 10,000 euros at the University of Georgia, as outlined in the call's annex 2.

Funding for the plan depresa can now cover a period of one or two years, from January to December of 2025 or 2026. Eligible expenses now include investment in equipment, personnel with a maximum hourly cost of 45 (increased from 40 in the previous call), materials, external collaborations up to 50% of the subsidized expense, and other costs like rentals, supplies, maintenance, patents, intellectual property, and audit expenses up to 2000.

There is an increase in the amount considered as eligible funding and the maximum grant amount if a doctor is hired according to the criteria in Annex A of the call. The doctor must engage in activities related to the company's technology development, have no prior contractual relationship with the company, be hired full-time indefinitely after the application but before March 31, 2025, and hold a doctorate title at the time of hiring.

External collaborations cannot exceed 50% of the budget considered as eligible funding and must meet specific criteria outlined in the call. If the collaboration exceeds 20% of the grant and 60,000 EUR, a written contract is required, and authorization is needed for contracts exceeding the threshold for minor contracts.

Expenses like financial costs, land and civil works investments, indirect taxes, and maintenance, transportation, and travel expenses (except for training specified in Annex 2) are not eligible for funding.

The application requires a comprehensive set of documents, including a business plan, authorization for subcontracting with related entities, identification of subcontractors exceeding the minor contract threshold, and declarations filled out in the online platform.

The business plan evaluation criteria are crucial for obtaining a high score in the proposal. The plan, detailed in annex 3, consists of 40 pages with specific font size and includes a summary and four main sections: commercial exploitation, technology, entrepreneurial team capacity, and socioeconomic impact. Each section is evaluated based on specific criteria with minimum thresholds for points required to proceed with the evaluation.

The evaluation criteria breakdown includes scoring the commercial exploitation plan from 0 to 30 with a minimum threshold of 15 points, technology from 0 to 35 with a minimum threshold of 21 points, entrepreneurial team from 0 to 30 with a minimum threshold of 15 points, and socioeconomic impact with five associated points and no minimum threshold. Failure to meet the minimum thresholds in any section can halt the evaluation process.

Filling out the business plan details accurately is crucial as it directly impacts the final score of the proposal. Including specific information such as general and specific objectives, technological needs, product descriptions, technical challenges, intellectual property, and justification is essential for scoring well in the evaluation.

The commercial exploitation plan requires detailing product/service advantages, customer strategy, international development plan, market size, potential barriers, key competitors, and competitive advantages. Providing thorough information in these areas is vital for achieving a high score in this section of the evaluation.

Assessing the team's entrepreneurial capacity involves evaluating the team structure, roles, member resumes, hiring of new doctors, managerial commitment, incubation status, ability to attract partners, and industry relationships. Addressing each subcategory in this section of the business plan is crucial for receiving a favorable evaluation.

The evaluation of socioeconomic impact focuses on job creation during and after the project, long-term investments, and overall economic benefits. Demonstrating a positive socioeconomic impact is essential for scoring well in this aspect of the evaluation process.

Organizations mobilized regarding the initiative should focus on aspects like gender equality, social inclusion, and sustainability. Beneficiaries of aid should refer to the manuals on the website for proper proposal justification, which are periodically updated.

Newly established technology-based companies in need of financial assistance, including grants and capital investment, can explore options like CEDTI's 'Invierte' program dedicated to capital entry. CEDTI offers various initiatives, such as 'Invierte,' to support startups.

The website provides contact information through various mailboxes for specific purposes. For instance, the 'neotec@c.us' mailbox addresses generic queries related to competitive calls and grants, ensuring equal treatment and nondiscrimination by only addressing general doubts, not specific cases.

Apart from specific mailboxes, there are additional contact channels like 'gpps@solinc.ti.es' for technical issues with the application. In case of queries not covered by existing mailboxes, a contact form is available for users to seek clarification on any relevant matter.

The speaker concludes by expressing gratitude for the opportunity, adapting the presentation to the limited time available. Emphasizing the importance of official information on the website and in the call, the presentation aimed to provide a general overview of the neotec proposal, ensuring clarity and understanding for potential applicants.

To be eligible for the Neotec program, small innovative companies must have been established for more than 6 months but less than 3 years by the application deadline of May 10th. Additionally, the companies must have a minimum social capital of 20,000 euros registered before May 10th. It is crucial that the capital is fully registered, not just submitted to the registry, to meet this requirement.

Companies applying for the Neotec program must not be publicly traded, incur competitive expenses from January 1st, 2025, and demonstrate differentiation through the development of their own technology. The program is open to companies from all sectors, emphasizing the importance of having proprietary technology development.

This year, the budget for the Neotec program has been halved compared to the previous year, with 20 million euros allocated instead of 40 million. The reduced budget will increase competitiveness among applicants, making it essential for companies to aim for excellence in their proposals.

Projects funded under the Neotec program in 2024 can span one or two years, starting on January 1st, 2025, and ending on either December 31st, 2025, or December 31st, 2026. Successful applicants can receive a non-refundable grant and an advance payment of up to 60% of the grant amount, capped at 150,000 euros, typically disbursed at the beginning of the project in 2025.

One notable feature of Neotec projects is the ability to request modifications to the initial business plan submitted with the application. These modifications must be requested three months before the project's end, allowing for adjustments to be made until October 31st, just before the project's completion on December 31st.

Until October 31, 2025, budget modifications can be requested, along with a maximum 6-month extension for project execution. These modifications allow for slight deviations in the budget between different categories and concepts considered eligible for financing in the approved project. Upon project completion, justification will be submitted for review by cedeti, and the remaining 40% of the grant will be paid, minus the initial 150,000 advance.

Out of the 20 million budget, 5 million is reserved for innovative projects led by women, constituting 25% of the funds. To qualify, the company's management must be predominantly female, and women must hold a majority of the social capital or significant participation in the project. Meeting these criteria is mandatory, along with fulfilling one of two additional requirements. This reserved funding offers a competitive advantage, with lower entry thresholds compared to the general call for proposals.

The specific funding pool reserved for women-led projects presents a significant opportunity for female entrepreneurs. Historically, the cutoff score for this allocation has been notably lower than the general call, making it an attractive option for those interested. The competition within this smaller pool is less intense, providing a favorable environment for female entrepreneurs to secure non-repayable grants with reduced competition.

In preparing project proposals, emphasis should be placed on the business plan and highlighting key aspects that differentiate the Neotec project from others. With a limited timeframe for submissions, a substantial effort is required to stand out among the 500-600 proposals typically received. The technology section, worth 35 out of 100 evaluation points, is crucial and must meet a minimum threshold of 21 points to be competitive in the evaluation process.

The evaluation criteria for the Neotec project include three main sections: the commercial exploitation plan, the entrepreneurial team, and the project's impact. Each section is scored out of 100 points with minimum thresholds to meet. The commercial exploitation plan and the entrepreneurial team carry 30 points each with a minimum threshold of 15, while the project's impact section is worth only five points. Applicants must adhere to the 40-page limit and focus on highlighting key aspects to score well.

While the official requirement states a final score above 50 points, historical cutoff scores for Neotec projects have consistently been above 70. Therefore, applicants are advised to aim for a minimum score of 70 or even 10 to increase their chances of being selected as beneficiaries.

The Neotec project sets a minimum budget of 175,000 and does not specify a maximum budget. However, it is recommended not to exceed 400,000 to ensure optimal funding allocation. Funding percentages vary based on factors like hiring a doctor, with a maximum financial support limit of 325,000. It is crucial to justify the budget thoroughly and align it with Neotec's eligible expense categories.

In Neotec projects, expenses related to personnel, equipment, materials, and external collaborations are considered eligible. It is essential to provide detailed justifications for each expense, including personnel roles, equipment specifications, and collaboration purposes. Notably, indirect costs, financial expenses, and civil works are not eligible for funding.

Key considerations for a successful Neotec application include ensuring the company's eligibility by verifying incorporation dates and capital expansion. Applications are submitted through the Cedeti telematic platform, with upcoming changes effective from April 15. Consultancy firms assisting with proposal preparation should be aware of the platform's updates to facilitate smooth application submissions.

Access to the CDTI application on April 15th has changed, now requiring certification instead of a username and password. Companies are advised to register at the CDTI headquarters and ensure their digital certificate is valid for project submission, which must be signed with the company's digital certificate.

The speaker, Evel Gimeno, a public funding consultant for startups, with 15 years of experience and specialization in startups since 2017, shares insights on the NEOTEC call. He highlights his successful track record with NEOTEC and IC Accelerator projects, emphasizing the importance of ecosystem quality and the impact on project approval rates.

Two main target groups for NEOTEC are startups in acceleration programs with an operational MVP and companies in soft landing programs. Startups must align with the vertical and technological level requirements, while soft landing companies must ensure eligible expenses are incurred from the Spanish entity for project approval.

The key to success in project approval lies in starting with the end goal in mind, envisioning the company's ambition in 10 years. Highlighting the importance of demonstrating a clear vision and ambition in project proposals to differentiate between companies with varying levels of growth potential.

The P-Space company is highlighted as a reference point for inspiring other companies. It emphasizes the importance of balancing grand visions with clear milestones. Entrepreneurs are advised to articulate their journey, achievements, and future goals, such as reaching a specific stage with the help of funding, like 250,000 or 325,000 units. The recommendation is to use industry-known terms like MVP 1.0, 2.0, 3.0, adapting them to the project's context for better understanding by evaluators.

Entrepreneurs are encouraged to assess the quality of their projects objectively. They are advised to review the 2023 call resolution from CEDTI, analyze approved and rejected projects, understand thematic trends, and anticipate evaluation criteria. It is suggested to be innovative by studying past calls like those from 2021 and 2022 to stay ahead of trends and offer unique contributions.

The speaker mentions that the previous year's approval cutoff was around 71 points with a significant budget. However, this year, the cutoff is expected to be higher, possibly around 77-79 points. There is a notable opportunity for women in the funding allocation. The importance of a strong proposal is emphasized, highlighting that a chain is only as strong as its weakest link.

The key to success lies in showcasing technological prowess, especially in deep tech projects. It is crucial to effectively communicate and demonstrate technological advancements. The speaker stresses the need for a cohesive proposal where all aspects, including technology and commercial viability, align seamlessly. Failing to convince in one area can impact the overall evaluation, as confidence in one aspect can influence perceptions in others.

The speaker advocates for building trust and cohesion within the team by ensuring excellence in all aspects of the project. The goal is to instill confidence in the team's capabilities and technology. While acknowledging the importance of various project components, the focus is on creating a unified front to inspire confidence in the project as a whole.

Well-developed projects have a clear advantage due to having more track record, advanced technology, additional subsidies, and a larger client base. This solidifies their reputation and credibility, making them more attractive to potential investors.

It is crucial for individuals to be aware of their strengths and weaknesses. Highlighting strengths is important, but acknowledging and addressing weaknesses is equally essential. Recognizing weaknesses, such as lacking in commercial skills, and taking steps to improve or compensate for them is key to personal and professional growth.

Organizing projects to appeal to potential investors involves presenting complex technical details clearly to a technological evaluator. Utilize precise data, references, and visual aids to make the project comprehensible. Additionally, focus on storytelling and impactful communication to engage investors effectively.

In sales presentations, emphasize credibility by showcasing support from accelerators, venture capitalists, industry leaders, and existing partnerships. Establishing credibility through external endorsements and agreements enhances the project's appeal and trustworthiness.

In the early stages of a project, the team's quality is paramount. Investors often prioritize the team's capabilities and potential for adaptation over the initial business idea. A strong team increases the project's chances of success and ability to pivot effectively if needed.

Strategic planning should focus on positioning the project for success in Spain and Europe. Developing a long-term technological roadmap demonstrates commitment and vision. Emphasize being a steady performer rather than solely seeking hype or unicorn status, aligning with the current investment trends.

To stand out among numerous competitors, aim to create a 'Wow' effect during presentations. With a high number of companies vying for attention, showcasing uniqueness, innovation, and potential impact is crucial. Understanding the competitive landscape and adapting to the challenging environment can increase the project's chances of success.

Starting on January 1st of next year, the CDTI project offers advantages for early-stage companies in terms of expenditure speed. It is easier for companies to plan expenses when receiving the first advance from CDTI. Projects with high expenditure speed should be one year long, while those with lower speed should span two years. Evaluators, who have limited time and review numerous projects, may not always distinguish between good and less favorable projects. Therefore, it is crucial to effectively communicate the project's value and impact within the first 5 minutes of presentation.

Seek assistance from experts at key moments, ensure impactful communication within the initial 5 minutes, and leverage the expertise of individuals who have experience or are reputable in innovation ecosystems.

Isabel Caruana, CEO of Ailín, a diagnostic support platform, shared her experience. Ailín facilitates accessible laboratory testing with medical guidance through self-sampling kits for over 35 pathologies. The platform analyzes samples and provides personalized medical feedback. Ailín applied for Neotec funding in its second year of operation, aiming to enhance product development and expand hardware solutions and technological capabilities.

Neotec funding enabled Ailín to expand its product range, enhance technology with artificial intelligence tools, and recruit specialized talent in biomedical expertise, data analysis, and technology. This support significantly boosted product development and operational capabilities.

Presenting a case to Neotec involves complex technological solutions that need to be effectively communicated. It is crucial to capture the attention of the person behind the decision within the first five minutes. Whether the solution is complex or a long-term idea, the ability to articulate and make it tangible is essential. Evelio played a significant role in helping to materialize ideas, pushing for necessary adjustments even through uncomfortable conversations.

The speaker initially faced rejection from Evelio in the first year, leading to a realization of unpreparedness. Despite this setback, they persisted and eventually succeeded with another consultant. In the second year, after establishing credibility, the speaker sought Evelio's feedback again, facing more challenges but engaging in a constructive conversation that ultimately led to a fruitful collaboration.

Navigating the market for agencies or consultancies requires time, expertise, and the right guidance. It is crucial to choose partners who challenge and push for excellence rather than simply affirming the status quo. Working with knowledgeable hands can lead to significant growth and success in competitive environments.

The key to success lies in understanding the right timing for presentations and seeking proper support and guidance. Having expertise that offers valuable insights and innovative strategies can make a significant difference in how a project is perceived and received. Utilizing unique tactics like presenting letters of commitment can enhance the presentation's impact and credibility.

The speaker expresses gratitude for the recommendations received and highlights the beauty of working on projects where they can influence and reflect strategically. They mention the opportunity to work with highly involved individuals on challenging projects, emphasizing the importance of strategic reflection in such moments.

The speaker addresses questions from the audience regarding eligibility criteria for a specific program. They explain that certain questions require detailed documentation for assessment and emphasize the need to thoroughly review each company's status to determine eligibility, highlighting the complexity of individual cases.

The speaker clarifies that the current program does not specify a TRL range for projects, emphasizing that it focuses on funding business plans rather than R&D projects. They explain the distinction between funding activities in a business plan and those in an R&D project, highlighting the absence of specific TRL requirements in the current program.

The speaker confirms that indirect costs are not eligible expenses in the program and addresses a question regarding microenterprises with fewer than 10 employees. They explain that while being a microenterprise is a positive factor, eligibility depends on meeting all other criteria, such as financial thresholds and operational duration.

The speaker clarifies that the founding date of the company applying for funding within a group of companies is the determining factor for eligibility. They emphasize that the eligibility criteria are based on the founding date of the specific company seeking funding, rather than the overall group, providing clarity on the assessment process.

When a company is part of a group, it must be cautious as group consolidation can impact its fiscal status, potentially disqualifying it from being considered a small business. The group's size and fiscal health can affect the eligibility of individual companies within the group. It is crucial to ensure that group operations do not hinder the eligibility of the applicant, meeting all criteria outlined in the call for proposals.

The call for proposals does not explicitly prohibit subcontracting with companies outside the European Union. However, subcontracting arrangements must adhere to the guidelines specified in Article 7 of subcontracting regulations. If subcontracting exceeds a certain threshold, the applicant must provide justification for selecting a particular subcontractor, especially if the most economically advantageous offer is not chosen.

Startups established within the last 6 months that have not yet completed their first fiscal year and have no revenue are eligible for consideration. The funding agency considers companies between 6 months and 3 years old as eligible, subject to meeting all other eligibility requirements. While startups in this category may qualify, evaluators may assign different scores based on various criteria, such as market presence and business trajectory.

In the previous year, out of 436 applications totaling 40 million euros, 131 companies were awarded funding, resulting in a success rate of approximately 30%. The current year's budget allocation of 20 million euros may lead to a lower number of potential applicants and beneficiaries compared to the previous year. The success rate is also influenced by the total number of applicants, which is a variable that cannot be controlled at present.

The funding allocation for the upcoming year is expected to be around half of the previous year's amount, with approximately 60 to 70 potential beneficiaries. The success rate varies depending on the number of potential beneficiaries, which is currently unknown. Last year, there were 131 beneficiaries out of 436 applicants, with a budget of 20 million euros.

Companies must be registered in the commercial register before November 10, 2023, to be eligible. The application deadline for the funding is May 10, 2024, with a requirement of at least 6 months of operation by that date. Companies created less than 6 months before the deadline cannot apply, except for spinoffs meeting specific criteria.

Spinoffs can apply for funding if they meet the beneficiary requirements and have been in operation for less than 6 months by the application deadline. However, if a spinoff has a significant ownership stake in a larger company, it may not qualify. Compliance with all eligibility criteria is essential for spinoffs to be considered for funding.

New technologies and processes must be innovative, patented, and supported by a new production process to be considered for funding. Evaluators will assess the novelty, intellectual property protection, and research background of the technology. The level of protection, whether national or international, and any third-party patent rights transferred will also be evaluated.

The success rate for female entrepreneurs in the previous year's funding round can be found on the official website. A budget reserve is allocated for female entrepreneurs, although the total number of eligible female applicants from the previous year is not specified. For further information, individuals are advised to refer to the official website.

The discussion highlighted that the funding reserved for women entrepreneurs may not be fully utilized due to a lack of sufficient qualifying applications. Any unallocated funds from the women's fund are then transferred to the general fund. This allocation strategy aims to support women-led businesses by providing a competitive advantage, as evidenced by lower cutoff scores for women-led projects compared to general projects.

Regarding the evaluation report requirements, it was clarified that there is no specific template to follow. Instead, applicants must adhere to the guidelines outlined in the base order. The report should demonstrate, through expert evaluation, the development of new or improved products or services that represent a significant technological advancement, aligning with industry standards and future technological trends.

In response to queries about Spanish companies with foreign leadership, it was emphasized that for projects like neotec, entities must be legally established in Spain with a registered business address in the country. Therefore, the focus is on the company's legal presence in Spain rather than the nationality of its leadership.

The discussion addressed the gender diversity requirements for personnel associated with the project. It was specified that when referring to the percentage of female personnel, the focus is on individuals working and contributing in Spain. The criteria include a minimum of 40% of hours dedicated by female personnel who are actively employed and contributing to the Spanish workforce.

As the session concluded, the speakers expressed gratitude to the attendees and encouraged them to consider applying for neotec funding. Despite the challenges, it was emphasized that success is achievable with dedication and hard work. Attendees were urged to seize the opportunity presented by neotec and strive for success in their entrepreneurial endeavors.