Acceleration of deep tech companies 2024

The offer is aimed at deeptech companies with solutions in a range of different application areas and who need funding to reduce technical and commercial risks, to attract investors, customers and partners.

Companies that are granted funds will be offered funding in project stages of 6-12 months with SEK 700,000 - 1,000,000 per stage. A maximum of SEK 4 million can be granted to a company over 3 years within the framework of all stages of the project.

During the course of the project stages, the companies will work together with a steering group that Vinnova puts together. The companies will also be offered competence-enhancing support measures via Vinnova.

The goal of the financing is for the company to be ready to attract private risk capital, attract and collaborate with customers. Alternatively, apply for and be granted funds in international calls for proposals, for example within Horisont Europa.

In this the call for proposals we want to offer funding to deeptech companies, with great potential to contribute to solving our major societal challenges, in a phase when private funding is difficult to obtain. The call for proposals will contribute to improving the conditions for strategically important deeptech companies to start, stay and grow in Sweden.

The offer is aimed at deeptech companies that have a product or solution that has reached a level of technical maturity where experimental evidence exists (so-called proof-of-concept), and that are ready to take the next step towards the market.

The companies must design their final goals and set relevant milestones in consultation with potential and relevant partners, customers or investors. The milestones must build a clear and realistic path towards the end goal based on the eligibility requirements set by the customer or investor. The end goal must be that the company is interesting for an investment or a first pilot deal with a customer.

In order to stimulate the development of Sweden's deeptech companies, not only funding is needed, but also better access to infrastructure and expert advice. This effort therefore offers tailored support measures to granted companies. Each company will work closely with a steering group consisting of appointed evaluator in the technology and business area together with Vinnova's programme manager.

Background

Deeptech companies are characterized by long development times with complex development cycles and large capital requirements. These companies play an important role in the economy, competitiveness and labor market of the future. Sweden's deeptech companies have great potential to contribute to solving the global societal challenges we face and can at the same time pave the way for Sweden as a leading industrial and innovation nation. Therefore, Swedish funding of deeptech companies needs to be strengthened.

Climate and gender equality promote sustainable growth

Vinnova is tasked with promoting sustainable growth and community development. Genom Agenda 2030, the countries of the world have agreed on a global agreement and understanding of what characterizes sustainable development. Through our efforts, we contribute to the global commitment to reach the goals.

In Inom Agenda 2030, Vinnova has specifically identified climate and gender equality as two central sustainability perspectives to which our funded investments should contribute positively. Project financed by Vinnova are therefore expected to take special account of the climate and gender equality aspects.

An aspect that Vinnova follows up and assesses within gender equality is whether both women and men share in the grant equally, participate in and have influence over the project. See section 7 under assessment criterion Actors.

Another aspect involves analyzing and deciding whether there are gender aspects that are relevant to the project's problem area, solutions and utilization. This question can be found under the heading " Project tasks" in the application form and is the basis for assessment, see section 7 under the assessment criterion Potential.

Our work to contribute to the goals of Agenda 2030

Equal innovation - what it means for you who seek funding from us

Related government assignment

Vinnova has an ongoing government assignment in three adjacent areas that affect this deeptech call for proposals.

Advanced digitalisation

Vinnova has a government assignment in advanced digitalisation with aim of strengthening Sweden's position internationally with regard to the next generation of advanced and powerful digital solutions. Development and application of key digital technologies interacts with the development of other strategically important areas for transition, such as electrification, automation and circular economy. In this call for proposals part of the available budget has been set aside for deeptech project that strengthen Sweden's ability in advanced digitalisation

Civil and military synergies

Together with the Armed Forces, Vinnova has a government assignment with aim of building an innovation program for civil-military synergies in research and development. The innovation program will primarily contribute to increasing Swedish military capability. It must be implemented to strengthen the competitiveness of Swedish companies and increase the opportunities to participate in international ventures. Companies that have an innovation within dual-use and that have indicated in their proposal an interest in developing military applications, may be given the opportunity for additional funding from the innovation program for civil-military synergies. This will involve a separate application procedure with a separate assessment. The separate procedure has no impact on the assessment of proposal submitted under this call for proposals.

6G

Vinnova has a government assignment within 6G with aim of strengthening Sweden's position as a leading nation for research and innovation in wireless systems, as well as increasing the competitiveness of Swedish companies in the field. 6G is expected to bring improved speed, improved data processing, seamless connectivity and significantly reduced latency. 6G systems involve various areas of technology, from software and artificial intelligence (AI) to semiconductors and radio communications. A faster wireless system is expected to lead to a range of new data-driven applications and enable increased productivity in many different areas and industries. In this call for proposals part of the available budget has therefore been set aside specifically for deeptech project within enabling technologies that intend to strengthen Sweden's ability within 6G.

Se Vinnovas current government assignment

The call for proposals is aimed at deeptech companies, where by deeptech we mean companies that are characterized by:

• Problem orientation
  The project or activity develops a crucial component of the solution to a significant challenge in society and the economy. The solution must have international market potential.
• Groundbreaking performance
  The project or business contributes to giving the deeptech solution groundbreaking performance relative to today's state-of-art. This is done through innovative use of breakthroughs in research and technology development.
• Research and development (R&D) at the forefront
  The team or business is connected to leading research environments. This relationship is used to both drive the research and be a channel for the exploitation of that research.
• Strategy, management and development of unique intangible assets
  The team or business has a clear strategy for the development and use of the portfolio of unique intangible assets that give the company attractiveness and a head start in the long innovation journey it faces.
• Long and complex innovation journey
  Circumstances regarding the intended market or industry, regulations or other structural factors make it challenging to take the innovation from idea to market breakthrough.

The deeptech companies we primarily turn to must be founder-driven and in need of government funds to attract customers and investors.

At least two people must work full-time in the company.

The founding team can consist of idea givers, entrepreneurs, innovators and other key people in the company. The members of the founding team must be owners of the company and they can own the company directly as natural persons or indirectly through a legal entity.

In cases where a legal person is the owner, this must be controlled by one or more of the members of the founding team. It can be added that they must be operational in the company's activities. Such companies should not have institutional investors with a strong ownership position. If the company has institutional investors who own more than 25 percent, these are expected to take greater financial responsibility and Vinnova's funding of the project will therefore decrease. See section 5 for more information.

The applicant companies' activities are expected to have reached a maturity level where the scientific discoveries and technologies that form the basis of the company's activities must meet the requirements corresponding to TRL3-4 (Technology Readiness Level or technical maturity level in Swedish).

These must have observable or measurable characteristics that give the company a necessary head start for its development. There must be a technical concept developed and that important parts of the functionality must have been demonstrated in a laboratory environment, a so-called proof-of-concept.

Please also note that applicant companies must meet the call's formal eligibility requirements for us to assess proposal, see section 6.
Read more about TRL

Activities for which funding can be applied for

The activities for which the applicant can use granted funding must be activities that are necessary to reach set milestones. The main rule is that the activity must be motivated by the need to validate and verify commercial assumptions or hypotheses.

Examples of activities covered by this are:

• Development activities to produce different versions of the solution to validate approach and technology. For example, architecture, functions, and production methods that solve a need or problem that you have identified and focus the business on. It could, for example, be about prototypes, Minimum Viable Product or other proposed solutions.
• Customer and market contacts to verify and validate customer offers and commercial conditions.
• Various commercial and technical feasibility studies needed to determine development plans and strategies.
• Test and demonstration activities to, for example, build partnerships, attract customers and investors or develop interoperability with other systems or subsystems.
• Business strategic management of intangible assets. This includes everything from assets being identified and positioned commercially to developing portfolio strategies for the management of companies' intangible assets

The majority of the project activities needed to reach agreed milestones must be carried out by the team running the company. In cases where the team needs support to be able to carry out an activity, expertise can be hired with the help of Vinnova's funds. In cases where experts are engaged during a stage, the results of the expert efforts must be translated and applied by the team during the stage to reach the milestone of the stage.

In addition to the above activities, granted companies may also be offered tailored support to strengthen and develop the applicant's conditions to carry out the innovation journey and achieve commercial success. In order to receive this support, the companies are required to make a proposal for additional funding during the course of the project.

Such support includes operational activities to strengthen the company's competence to, among other things:

• Develop the company's capital supply and link it to the company's business development, for example through Investment Readiness Process.
• Develop the team, for example through SISP STEP-program.
• Develop the company's ability to cost-effectively produce and industrialize the customer offer, for example through the Production Angels.
• Design a proposal for European Innovation Council, EIC.
• Develop the company's sustainability integration of the business concept. With particular focus on climate and gender and gender analyses.
• Develop the company's strategic use of intangible assets.

Our funding is covered by rules on state aid. The rules govern both what kind of costs and what proportion of the costs we can finance.

How much funding can the project receive?

Through this offer companies can be financed with a maximum of SEK 4 million in funding over a period of a maximum of 3 years, but funding will take place in stages based on set milestones. Each stage should last between 6–12 months and with a budget of SEK 700,000 - 1,000,000. We grant one stage at a time.

Proposal for this call for proposals therefore refers to an overview description of the entire project (a maximum of SEK 4 million over 3 years and SEK 1 million over 6-12 months), but a detailed description of the first stage of a maximum of SEK 1 million.

After each stage, the results are evaluated by a steering group together with Vinnova's programme manager. The company must also submit an updated plan for the next stage in connection with the evaluation. Based on these documents, the steering group makes a recommendation and Vinnova decides whether a further stage should be financed or not.

The degree of government funding is also determined in this call for proposals by the ownership profile and the extent of any institutional ownership.

5.2 Which costs can we finance?

Our funding may only go to certain types of costs. These are called eligible costs.

In this the call for proposals these types of costs are eligible:

• Personnel costs: Salaries, social security contributions and other personnel costs
• Equipment, land and buildings: Instruments, equipment and rent for premises other than regular business premises
• Consulting and licensing costs: Consulting services, knowledge and patents purchased or used under license from an external actor
• Other direct costs: For example materials, stock items and travel necessary to carry out the project
• Indirect costs (overhead): Costs that did not arise as an immediate consequence of, but cannot be related to, the project, for example regular premises and cleaning.
  Indirect costs may constitute a maximum of 30 percent of personnel costs

For more detailed information on which costs we can finance, see our instruction on eligible costs.

Foundations of support

In this the call for proposals we provide funding to companies and others who conduct economic activities and are covered by rules on state aid. In this call for proposals Vinnova provides support according to the government's regulation (2015:208) on state aid for research and development and innovation (the "Support Regulation"). It refers to the EU Commission's Regulation No. 651/2014 on General Block Exemptions ("GBER")5 and to Regulation (EU) No. 2023/2831 (the de minimis Regulation).

Based on the direction of the announcement, we foresee that it will primarily be companies that fall within the definition for article 22 below that will be relevant for funding. However, there may be certain project where the company does not fall within Article 22 but which is still in line with the call's aim and objective. There, one of the other grounds for support listed below may be relevant.

Depending on the focus of the project and the basis for support that the company is granted funding according to, the company needs to co-finance the project to varying extents. An overview table of which support bases apply to this call for proposals can be found below.

For a detailed description of the grounds of support on this page
Note in particular which companies are defined as start-ups under Article 22.

What eligibility requirements apply to costs we finance?

For a cost to be eligible, it must be necessary for the activities of the project. Project costs must also be properly accounted for and reported separately from the company's other costs. A company may also not take on someone else's costs as its own.

For more detailed information on which eligibility requirements, limitations and exceptions apply, see our instruction on eligible costs.

In order for us to take a position on and assess your proposal it must meet certain basic requirements - so-called formal eligibility requirements. If these eligibility requirements are not met, our evaluator will not handle your proposal.

• Applicant must be a Swedish limited liability company with a maximum of 49 employees, with a net turnover or balance sheet total of less than ten million euros, according to the last approved financial year.
• The Applicant company must have been active for at least 12 months at the time of application.
• The project manager for the project must be an employee of or signatory to applicant company during the project period.

What do we assess?

• In this the call for proposals the company must state its aim and objective for participating in the program. You must describe what Vinnova's funding of a maximum of SEK 4 million should result in for the company to be able to attract an investment or a commercial collaboration with customers or partners. This is to thereby be able to take the next commercial step in the company's development.
  State the stage goal for the first financing decision Vinnova must make, i.e. describe in detail stage 1 (maximum 1 MSEK over 6-12 months) in terms of milestones, plan and budget as well as stage characteristics developed in dialogue with partners, customers or investors.
• The milestones must meet the eligibility requirements set by the customer or investor in order for the company to become interesting for an investment or a first pilot deal with a customer.
• The company must explain why this customer, partner or investor is important to the company's development.

Proposal are assessed based on the assessment criteria below. Note that the Relevance criterion functions as a prerequisite for the other criteria. A proposal that is not deemed relevant enough will not be granted, regardless of whether the other criteria are deemed well met.

Relevance

How well proposal describes and convinces:

• that the company develops a crucial component for the solution to a challenge in society or the market.
• that development is dependent on technical and scientific breakthroughs.
• that the development is capital-intensive and capital supply is difficult or risky.

Potential

How well proposal describes and convinces:

• that the company's innovation will contribute to decisive benefit for the customer.
• that the market is sufficiently large and international.
• prevailing competitive situation and the company's measurable competitive advantages.
• how sustainability can contribute to the company's competitive advantages.
• that development is based on knowledge and technology assets that are unique and give the company a head start.

Actor

How well proposal describes and convinces:

• that the founders still run and control the company.
• that the team consists of at least two people who work full-time in the company and have the competence and commitment to the operational activities required to succeed.
• the collaborations required for them to succeed in reaching Product/Market-Fit.
• how well the project constellation is composed with regard to gender distribution, including the distribution of power and influence between women and men.

Feasibility

How well proposal describes and convinces:

• what Vinnova's funding should result in after all granted stages have been completed and a maximum of SEK 4 million in funding has been obtained. As well as in what way this is decisive for the company's continued development.
• the milestones for the first stage and its importance for future stages and the company's development.
• that the implementation of the first stage is credible and relevant.
• how well relevant aspects relating to gender equality have been integrated into the implementation.

How do we judge?

Proposal is assessed in competition with other received applications for the call for proposals according to the following process:

1. Proposal are made in Vinnova's e-services.
2. All applications that meet the formal requirements are assessed by a group consisting of evaluatorspecially appointed and appointed by Vinnova, as well as by Vinnova's internal evaluator.
3. Based on the assessment group's recommendation, a selection of the applicant may proceed in the process and be called to an interview. During the interview, applicant companies may present their project in front of an assessment panel.
4. Vinnova makes decisions about which project are to be granted.
5. Decision is notified to applicant.
6. The companies that are granted funding are called to a start-up meeting.

When we have assessed all applications, we will send a decision in which we either grant or reject your proposal. In the decision, we state how much funding each party in the project is granted. Our decision cannot be appealed.

What if you are granted funding?

If we grant your proposal, you must follow our general terms and conditions for funding.

The terms include this:

• That you must sign a special document in which you agree to carry out the project.
• That you must report your costs and results to us regularly during the project.
• That you, if you are several parties, must agree on what applies to the project in a project agreement.
• How the results will be used, and how any scientific publication will take place.

See our general terms and conditions and get help understanding and fulfilling them

You also need to follow the special conditions that apply to this the call for proposals:

Please note that funding is granted per stage and not for the project as a whole. See section 5. An approved proposal therefore does not mean that the entire requested amount will be guaranteed to be granted.

We can also decide to add supplementary special conditions for individual project. In that case, they appear in the decision.

Can you have to pay back funding?

If you do not follow our term, you may be liable for a refund. This also applies if you have been granted funding incorrectly or with an amount that is too high.

When your proposal has been registered, we send a confirmation to the person responsible for the user account as well as to the project manager and the signatory.

If you submit a proposal on the same day as the call for proposals closes, it may take a few hours before you receive a confirmation. If you have not received a confirmation within 24 hours after the call for proposals closes, please contact us.

When the call for proposals is closed, you cannot change anything in proposal. Then you can only supplement if we ask for it.

Who can read your proposal?

Applications submitted to us become public documents. This means that we must disclose them if they are requested.

However, we keep confidential information that we believe could mean financial damage if disclosed, for example information about the business, inventions or research results.

This is how we handle public documents and confidentiality