Development Funding

Research and development is the lifeblood of most organisations. Almost all products and services have a finite life cycle and as new technology becomes more embedded the length of these cycles is becoming shorter and shorter. Most organisations need to constantly refresh their offerings at an ever-increasing rate if they are to continue to thrive.

In many organisations, and particularly in SMEs, R&D activities take place on an informal basis rather than within the framework of a formal R&D programme. In some cases this is simply because the organisations do not attach a high priority to R&D activities. But more frequently it is because organisations do not have the resources available to support formal R&D programmes and have to rely on informal and unstructured activities to protect their future.

Largely as a result of being in just this situation ourselves KPeople undertook an in-depth review of potential sources of R&D funding for companies generally and SMEs in particular. As a result of these activities we have been successful in raising substantial R&D funds to support our own product and service development programme.

Having found our way around the maze of sources of funding and the rules, regulations, personalities and peculiarities associated with each of them we have increasingly often been asked to support our clients in securing funds for themselves.

Our expertise covers many national sources and we have particular expertise in the areas of funding provided by the European Commission. We have acted in the roles of evaluators of proposals and reviewers of projects in the areas of smart government, new ways of working and electronic commerce for the Commission for a number of years.

Recently we have found that an increasing number of organisations, and particularly technology-related SMEs, have come to us to help find investment funding, not for basic R&D activities, but to provide the capital required to take them to an Initial Public Offering (IPO). Through these activities we have begun to develop a network of potential sources of funding to which we can take good ideas and proposals. We also know what they are looking for and can help to develop initial presentations to help get through the door in the first place and robust business plans to make a strong case for funding.

Guidance on types of funding

	What would be the most appropriate type of funding for the development proposed; R&D seed capital, second-stage, etc.?
	What sources of the required type of funding are available; national governments, the European Commission, international organisations, business angels, venture capital trusts, the banks, institutional investors, etc.?
	What are the requirements and conditions for each of these and which are the best ones to go for?

Preparing for investment funding

	Is the company ready for seeking the proposed type of funding?
	How can it be prepared and improved to maximise the chances of successfully securing funding?
	Which are the best sources of help to secure the required improvements?

Securing investment funding

	What is the best way of attracting the initial interest of potential investors?
	How can a business plan be developed that maximises the chances of being offered funding?
	What is the best possible deal that can be made with the investor?

Securing R&D funding

	How can R&D requirements be built into strong research proposals?
	What are the proposal requirements for each of the potential sources of funding?
	How can the right partners be found for collaborative research and the right agreements made about future exploitation rights?