Generally, startups use private equity funding, either through FFF, business angels or venture capital firms, depending on their degree of maturity or stage.
However, emerging companies should not be oblivious to the different grants or grants they can access. These funds usually have several advantages, since in many cases it will be money that they do not have to repay or they will be able to access loans with very advantageous financing conditions, which of course are not usually those offered by banks or credit institutions. One of the most interesting grants is CDTI PID Program. The CDTI (Center for Industrial Technological Development) is a Public Business Entity that depends on the Ministry of Science and Innovation and is responsible for promoting innovation and technological development in Spanish companies. This body offers financial support to Research and Development Projects (PID). Last year, the CDTI Board of Directors gave the green light to two new types of projects: ONE HUNDRED and R&D projects for the Development of Dual Technologies, which are also eligible for these funds.
Requirements to access the CDTI PID Program
The beneficiaries of this aid, to which it is possible to apply throughout the year, are companies that have started R & D projects and that are aimed at “significantly improving production processes, products or services.” In principle, there are no restrictions on the sector or technology to be developed. These can be both industrial research activities and experimental development.
However, Yes, it is requested that the expenses considered derive directly from the R & D activity that would be supported. This may include instrument and material costs, personnel costs, acquired patents, consulting expenses and equivalent services, etc.
It's a condition Sine qua non to qualify for the PID CDTI program, the startup or company must contribute at least 15% of the budget through its own resources. The total budget must be at least 175,000 euros for all projects, with the exception of CIEN, which must exceed 5 million euros. The projects must have a general duration of 12 to 36 months. However, in the case of national technological cooperation, they may extend from 12 to 48 months and those of CIEN must cover 36 to 48 months.
Economic conditions of the PID CDTI Program
The economic conditions of the PID CDTI program are quite advantageous for entrepreneurs and researchers. As we mentioned, help may come to 85% of the provided budget.
Beneficiaries will have a deadline for the return of between 7 and 10 years, including a grace period of between 2 and 3 years. The interest rate is fixed: 1-year Euribor, now 0%. In addition, they can enjoy the 35% down payment of aid with a limit of 250,000 euros, without requiring additional guarantees. To this would be added the non-refundable tranche of between 20% and 33% of the aid (non-refundable tranche means grant, therefore, it is the percentage of money that does not have to be returned).
Compatible or not with third-party funds
Companies or startups that ask for this help do have the opportunity to make it compatible with other third-party funds, such as those of the ERDF or those of the EIB. However, they cannot be combined in the case of dual technology development projects.
Other interesting programs from CDTI: Neotec Grant for projects less than 3 years old
CERVERA Program for projects that apply Artificial Intelligence or Machine Learning, among other priority technologies.
