A week ago, the first call for the new European funding line closed, SME Instrument Phase 1. This is an attempt by the European Commission to promote growing technology-based companies so that they can launch a product to the market, unlike previous European programs that prioritized R&D projects regardless of their commercialization. Grants, which consist of non-refundable grants, allow companies from different countries of the European Union to apply individually or in a consortium. At Intelectium, we were always clear that success came through Consortium projects. However, the statistics published by the EC last week were surprising: of the 2666 proposed, more than 50% were done alone.In a call with so much competition, only 164 of those 2666 requests will receive funding, the excessive trust of those more than 1300 SMEs that decided to go alone may prove to be an error. For this reason, we want to offer reasons in favor of business associations in order to respond to some of the most common fears and reticences presented to us by entrepreneurs.1. A consortium gives strength to the proposalThe formation of a collaboration agreement between two or more companies is a work of planning, dialogue and project design that begins long before the application documentation is prepared. A consortium project denotes a dedication to the project that goes beyond the mere interest in accessing the line of funding being requested. It demonstrates a willingness to form a solid project in which different companies complement each other in their development and marketing functions to carry out the best possible project. And this is precisely what we seek to promote with grants to finance R&D projects.2. A consortium ensures the viability of the projectJust as a company led by a single entrepreneur offers less confidence in its viability, since it is possible that any unforeseen event could push you away from the business, a project carried out by a single company shows greater risks. The company may be affected by an economic setback that prevents it from carrying out the project and places it in a difficult situation when it comes to justifying the investment of the aid granted. A consortium project ensures viability, while risk is diluted between the different parties, alleviating the analyst's concerns about the viability of the proposal and offering higher success rates in obtaining funding.3. A consortium does not mean giving up industrial ownership of the productMany entrepreneurs are reluctant to form consortiums for fear that this will entail a transfer of rights to the final product, arguing that their team is more than qualified to achieve the results without the need for another company to get involved. However, this is because the concept of a consortium is misunderstood when thinking that it is a matter of uniting two companies with similar expertise. A consortium is a collaboration agreement that is based on complementarity. The project leader may be an expert in software development but not in the hardware that will be essential for the final product. Or perhaps it will not be able to generate the commercial traction necessary to materialize the sales forecast. A consortium formed with the objective of complementarity will never pose problems in relation to the product's IP, since the functions will be delimited from the start and the distribution of benefits will never require a transfer of rights. Namely, the commercial party can receive a percentage of the sales it has led, while a company that has collaborated in the development but not in the core of the product can receive a payment as an outsourcing.4. A consortium boosts the company's activityCollaboration has always been one of the best engines of progress, as it expands the possibilities of the project so that it becomes a truly innovative R&D proposal and that does not remain a project aimed at improving the company's current competitiveness, without interest in improving the state of the art of technology. However, it has an effect that Intelectium has frequently observed: an R&D project is the best catalyst for the birth of a second project, a new idea. Collaboration allows entrepreneurs to overcome their preconceptions about the future of their business and design innovative strategies that allow them to differentiate themselves and achieve results.
