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RESTART 2016-2020: DISRUPT Programme DISRUPT/0123

Funded by the Recovery and Resilience Facility of the NextGenerationEU instrument in the frame of Cyprus’ Recovery and Resilience Plan 2021-2026 - “Cyprus_tomorrow”

The «DISRUPT» Programme aims to connect enterprises which develop cutting-edge innovations with the potential to create new or disrupt existing markets, with Venture Capitals who will support the further development and scale-up of these enterprises in international markets. Through the Programme, RIF’s funding – grant will be combined with the VC investment, with the aim to support the successful penetration of beneficiaries in international markets, and as result to enhance the competitiveness and resilience of the Cypriot economy.

INTRODUCTION

The Research and Innovation Foundation (RIF) announces the Call for Proposals for the «DISRUPT» Programme within the framework of the «RESTART 2016-2020» Programmes for Research, Technological Development and Innovation – Programmes for the Period May 2022 – March 2023 and invites potential beneficiaries to submit relevant Project Proposals (Proposals).

The present Call will be financed by the Recovery and Resilience Facility of the NextGenerationEU instrument, in the frame of the action C3.212 «Innovation Funding Programmes and Funding Schemes for the Enhancement of Growth and Competitiveness of startups, innovative companies and SMEs» of the Cyprus Recovery and Resilience Plan. The Action is implemented under Policy Axis 3: «Strengthening the Resilience and Competitiveness of the Economy», and specifically the Component 3.2 «Enhanced Research and Innovation».

GENERAL CALL INFORMATION

Pillar ΙΙΙ. SUSTAINABLE RTDI SYSTEM
Programme DISRUPT
Call Identifier DISRUPT/0123
Funding Source EU Recovery and Resilience Facility
Call Budget

13.000.000 Euro

The available budget for the 1st Deadline is 5.000.000 Euro.

For the 2nd Deadline 5.000.000 Euro plus any unused budget from the 1st Deadline, based on the announced results of the 2nd Evaluation Stage of the 1st Deadline, will be made available.

For the 3nd Deadline 3.000.000 Euro, from National Resources, plus any unused budget from the 2nd Deadline, based on the announced results of the 2nd Evaluation Stage of the 2nd Deadline, will be made available.

Maximun Funding Per Project 1.500.000 Euro
Publication Date 20 January 2023
Deadline

1st Deadline:

1 June 2023, 13:00

 

2nd Deadline:

1 December 2023, 13:00

 

3rd Deadline:

22 March 2024, 13:00

The English version of the Call, even though an official translation endorsed by the Research and Innovation Foundation, is provided for information purposes only. Only the Greek version of the Call is legally binding and shall prevail in case of any divergence in interpretation.

 OBJECTIVES
«DISRUPT» Programme aims to connect enterprises which develop cutting-edge innovations with the potential to create new or disrupt existing markets, with Venture Capitals who will support the further development and scale-up of these enterprises in international markets.

Through the Programme, the RIF funding – grant will be combined with the VC investment, with the aim to support the successful penetration of beneficiaries in the international markets, and as result to enhance the competitiveness and resilience of the Cypriot economy.

 

Description

Through the «DISRUPT» Programme, enterprises with mature cutting-edge ideas are supported, which, at the proposal submission stage, have a signed binding agreement with an investment fund (VC Fund), which foresees for an equity capital investment of at least € 1 M in the company, to support its development in international markets.

Cutting-edge innovations are:

  • Products or services based on new technologies and have the potential to create new international markets.
  • Products or services based on adapting existing technologies and have the potential to create new international markets or to attract new customers in existing international markets.
  • Products or services based on new technologies and have the potential to disrupt to a large extent existing international markets.

At the proposal submission stage, enterprises should have a Minimum Viable Product-MVP, for which beta testing of the product’s/service’s functionality, utility, and reliability by intended end users has already been completed and the good is currently available in at least one market. For innovations in the field of biomedicine, it is expected that at least the in-vitro testing stage has been completed.

Furthermore, by the proposal submission, the applicants must be able to justify that they have taken all appropriate measures to ensure the unobstructed commercial production, use and exploitation («freedom to operate»), including ownership of intellectual property rights (IPR) in a way that does not infringe third parties’ IPRs, any pending patent applications, as well as issues related to licencing of results.

In the frame of the RIF funded Projects, experimental development activities can be implemented which aim at the advancement of the technology readiness level of the innovation, the improvement/finalisation of the innovative product/service in a way to fully cover new functionalities/uses which the market seeks, and the completion of product/service development. The Programme also covers innovation activities, which may include the purchase of consulting services and innovation support services, which aim to further develop the innovative business idea towards a more commercial-ready product or service, as well as the costs of the beneficiaries' participation in exhibitions/trade fairs for the promotion of the products/services. Through the Programme, the project team’s involvement in activities relevant to implementation of feasibility study of the project, as well as Marketing and Communication activities, are also supported. It is clarified that, the above refer to activities to be funded by the RIF.

The investment funds may cover any activities deemed necessary by the investors for the scale-up and market deployment of the innovation, including the company's own contribution to the RIF funded project.

BENEFICIARIES
Enterprises

SPECIFIC RESTRICTIONS AND CONDITIONS FOR PARTICIPATION
The Host Organisation (HO) of a project must be a Small, Medium or Large Sized Enterprise (B1, B2, B3).

Eligible organisations are local enterprises, regardless of their size or year of establishment, with mature cutting-edge ideas, which, at the proposal submission, have a legally binding agreement with a VC Fund, which foresees a direct investment in equity of at least € 1 M in the company, to support its scale-up towards the international markets. The investment should be made between the Call announcement date and until the end of the Project funded by the RIF. Otherwise, the HO should return funding awarded back to the RIF. To justify the investment, the RIF will require relevant proofs for the transactions (e.g. documentation of issued share capital).

The investment fund should be regulated1 in a competent authority in Cyprus or in another member state of the European Economic Area2.

The participation of Partner Organisations and Foreign Research Organisations is not permitted.

All beneficiaries that have not previously participated in the RESTART 2026-2020 Programmes, should make use of the simplified cost Method «Standard Scales of Unit Costs» for the calculation of personnel costs.

Each Enterprise can receive funding from the RIF for only one Project in the frame of the Programme during the 2022-2027 period.

Funding of same activities that have already been supported by the RIF in the frame of previous funded projects, is not allowed.

In the cases where the suggested project, requires to undergo a bioethical assessment by the Cyprus National Bioethics Committee, the relevant approval should be ensured as soon as possible and prior to the 2nd Stage of the Evaluation. 

PROJECT ACTIVITIES
The Projects must include the following activities.

Experimental Development:
Prototyping, demonstration, pilot operation, testing and validation of improved innovative products/services or new functionalities and uses for the minimum viable product.

Experimental Development activities should fall within Technology Readiness Levels (TRL) 6-8 according to the definitions adopted by the EU3.

Feasibility Study:
Scientific / technical Feasibility Study for the innovative business idea, including the investigation of its commercial potential, and validation of the business model.

Innovation Activities:
The following Innovation Activities are allowed by the beneficiary:

  • Innovation advisory services, assistance and training in the use of standards and regulations embedding them.
  • Innovation support services for:
    (a) Measurements, tests, certification and analyses,
    (b) Access to research infrastructures, libraries and databases,
    (c) Market Research (which may indicatively cover market size estimation and segmentation, estimation of purchase intention from potential customers, pricing issues, involvement of key stakeholders and opinion leaders, competition analysis), and
    (d) Quality Labelling.

Participation in Trade Fairs / Exhibitions:
Participation of the beneficiary in trade fairs / exhibitions with private stand for the promotion of the product / service.

Other Production, Communication, Investment Attraction and Market Penetration Activities:

  • Personnel Costs for activities that may include Branding/Marketing/Investment Readiness, meetings/users’ involvement, product/service and packaging design, internationalisation, user manuals preparation etc.
  • Equipment.
  • Design and preparation of Communication Material (publications, audio-visual material, graphic design services) to be used for attracting investors/customers.
  • Support services and research for internationalisation/penetration in new markets.
  • Traveling abroad for meetings with potential investors/customers.

Duration of Project Implementation

Up to 18 Months

Budget

€10.000.000

Maximum Funding per Project
€1.500.000

The Aid Intensity of the Host Organisation for Experimental Development Activities and Feasibility Study is calculated according to the provisions of Chapter 3.2 of the present Work Programme. Aid Intensity for Innovation Activities and Participation in Trade Fairs / Exhibitions is 50%, and for activities to be funded as De Minimis Aid is 100%. Furthermore, Aid Intensity for Large Enterprises, as Host Organisations, for Innovation Activities and Participation in Trade Fairs / Exhibitions which will be funded as De Minimis Aid will be 50%

The final Aid Intensity for the Host Organisation, taking into account all of its activities, cannot exceed 70%.

 

ELIGIBLE COSTS
The following costs are eligible:

Experimental Development:

  • Personnel Cost
  • Costs for Instruments and Equipment (depreciation)
  • Costs for External Services
  • Costs for Travelling Abroad
  • Consumables
  • Other specific costs
  • Overheads

Feasibility Study:

  • Personnel Cost
  • Overheads

Innovation Activities:

  • Costs for External Services

For Large Enterprises, the funding for these costs will be provided on the basis of the De Minimis Aid Regulation.

Participation in Trade Fairs / Exhibitions:
Renting and setting up stand (invoice from organisers, graphic designers cost etc), registration in the fair/exhibition, transportation of material to be used for the stand, insurance costs, and travelling abroad for the representatives of the company that will participate in the fair/exhibition abroad.

For Large Enterprises, the funding for these costs will be provided on the basis of the De Minimis Aid Regulation.

Other Activities (De-Minimis):

  • Personnel Cost
  • Costs for Instruments and Equipment – Incl. industrial production equipment (full cost)
  • Costs for External Services
  • Costs for Travelling Abroad
  • Other specific costs

For «Other Activities» funding will be in the form of De Minimis Aid (Commission Regulation, No 1407/2013 of 18 December 2013).

It is noted that, for Eligible Costs Categories, unless specified otherwise, the EU framework for State Aid applies, and specifically the Commission Regulation (EU) No 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty.

SPECIFIC CONDITIONS
In the frame of the present Call, the following specific conditions apply:

  • The Host Organisation is required to register the updated data regarding its ultimate beneficial owners in the Competent National Registry / Archive, as per «The prevention and suppression of money laundering and terrorist financing Law of 2007 (188(I)/2007)». The RIF maintains the right, via the appropriate authorities, to proceed with the appropriate checks in the competent Registries to verify the registration of the data and it is possible to request for the submission of official proofs. For this purpose, the Host Organisation should submit an official proof for the data registration prior to the 2nd Stage of Evaluation. Furthermore, in case where requested funding exceeds 150.000 Euro, by the 2nd Stage of the Evaluation, the Host Organisation will be required to also submit the data (Name and Surname, ID / Passport Number and Date of Birth) of its ultimate beneficial owners through the relevant Declaration.
  • Funded Projects should comply with the «Do No Significant Harm» principle, according to which they must not include or support activities that could cause significant harm to any of the six environmental objectives, as per Article 17 of Regulation (EU) No 2020/852, on the establishment of a framework to facilitate sustainable investment.
  • In order to support the exploitation of research results, the interaction between the Host Organisation and the Central Knowledge Transfer Office (KTO) for the preparation of a customised Action Plan for the Provision of Services by the KTO, is obligatory in the frame of the present Call. It is noted that, the adoption of the Action Plan and the acquisition of the Services are not mandatory.
  • For budget revisions in funded Projects, the following apply:
    • Budget revisions for which the Project Coordinator may proceed without prior approval from RIF, as defined in Chapter 5.2. Section III of the Work Programme, apply only for transfers within the same type of Activity Eligible for Aid.
    • In the cases where there is a need for budget revisions between different types of Activities Eligible for Aid, the Project Coordinator should submit a relevant request for approval by the RIF.
    • Costs for the «Participation in Trade Fairs / Exhibitions» type of Activity Eligible for Aid, which will be included in the Project Contract, cannot be transferred in other Activity Types, during the implementation of the project.
  • For budget revisions between different types of Activities Eligible for Aid, the following apply:
    • The Final Aid Intensity, which is the percentage of the Requested Funding over the Project Budget, should not exceed the Final Aid Intensity defined in the Project Contract, and the Final RIF Funding (for the funded Project) should not exceed the Project Requested Funding as defined in the Contract.
    • Aid intensities for each of the type of Activity Eligible for Aid, cannot exceed the maximum allowed Aid Intensity for each activity, as defined in the RESTART 2016-2020 Work Programme.
  • Project Representatives should attend a workshop, to be organised by the RIF, to cover issues related with the proper project management and administration, and to be certified accordingly.
  • Periods for Progress Report submission and the amounts of funding instalments, will be defined in the Project Contract. All Progress Reports and the relevant Payment Requests, should be submitted up to fifteen (15) calendar days following the end of the time period they pertain to.

 The Research and Innovation Foundation encourages in all its Calls for Proposals:

  • the participation of women as Project Coordinators, and
  • the gender-balanced formation of projects

Evaluation Procedure
The evaluation procedure of the Programme consists of the Preliminary Check, as it is described in the RESTART 2016-2020 Work Programme, and then the Evaluation Stage ‘A and Stage ‘B will follow.

During Stage ‘A of the Evaluation, each proposal is remotely evaluated by two (2) experts, which: (a) are specialists in the proposal topic, and/or (b) have good knowledge of the business environment in the proposal field, and/or (c) have relevant experience in product/service development. Proposals which secure an Evaluation Score of at least 12.00/15.00 qualify to Stage ‘B of the Evaluation. Prior to the evaluation of each Proposal, according to the evaluation criteria, the evaluators will check the compatibility of the Proposal with the Programme's objectives and the provisions of the Call for Proposals. If the Proposal is inconsistent with the objectives of the Program, the Evaluator rejects the Proposal and does not proceed with the examination of the evaluation criteria.

The evaluation of Proposals in Stage ‘B is carried out by an Independent Evaluation Committee, consisted by experts with business background and relevant experience in product/service development. In the frame of Stage ‘B of the Evaluation, a member/members of the project Team present the Project, in person, to the members of the Committee, who will have the opportunity to ask for clarifications and discuss the content of the Proposal between themselves and with the representatives of the project Team. The participation of representatives from the investment funds in the presentation, is not allowed.

The final decision regarding the selection of a proposal for funding, is at the discretion of the Committee. After completion of the procedure, the relevant Evaluation Report will be communicated to the Project Coordinator, stating the rationale behind the Committee’s decision. The Committee’s decision is final and cannot be appealed against.

For the deadline set in the present Call the Stage ‘B of the Evaluation will be held in the period between June-July 2023. Representatives of the Cyprus Chamber of Commerce and Industry (CCCI), the Federation of Employers and Industrialists (FEI) and the Treasury of the Republic of Cyprus will be invited to attend Committee meetings as observers.

 

Evaluation Criteria/Weighting
(1) Excellence 30%, (2) Added Value and Benefit 35%, (3) Implementation 35%.

Selection
Proposals that have been deemed eligible for funding following the evaluation procedure, will be selected for funding. It is noted that, the total funding of approved projects, will not exceed the total Call budget.

 

1 The term ‘regulated’ refers to direct or indirect regulation of the investment fund through supervision of the AIFM of the fund by the competent regulatory authority in Cyprus or in another member state of the European Economic Area.

2 Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, Iceland, Liechtenstein, Norway.

3 The Technology Readiness Levels adopted by the EU are:
TRL 1- basic principles observed
TRL 2- technology concept formulated
TRL 3- experimental proof of concept
TRL 4- technology validated in lab
TRL 5- technology validated in relevant environment
TRL 6- technology demonstrated in relevant environment
TRL 7- system prototype demonstration in operational environment
TRL 8- system complete and qualified
TRL 9- actual system proven in operational environment (competitive manufacturing in the case of key enabling technologies)

 

CALL FOR PROPOSALS

RESTART-2016-2020-WORK-PROGRAMME – VERSION 15 May22-December-23

GUIDE FOR EVALUATORS

FREQUENTLY ASKED QUESTIONS

 

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