Project description
Crowdfunding as an option for covering SME project costs
The Austrian research promotion agency (FFG) commonly funds up to 50 % of total costs for SME social innovation projects. In recent feedback, however, FFG found that an alarming number of companies did not file applications for state funding because they were unable to raise matching funds. FFG is launching the SIM Crowd project to find out whether pointing innovating companies to available public funding will improve chances of funding for them, and to what degree. The Agency will select a number of projects for a test run on a crowdfunding platform, using positive results to encourage innovators to cover non-FFG project costs through crowdfunding.
Objective
The main objective of the proposed project is to conduct an experiment and test the effects of a “seal” (“funded by FFG”) and information about matched funding provided by a public funding organisation (FFG) on the funding decision of the audience on crowdfunding platforms. A randomised controlled trial (RCT) will be conducted within the existing funding scheme “Impact Innovation” of the Austrian Research Promotion Agency/FFG.
FFG first launched a pilot scheme for a new programme called “Impact Innovation” in 2017. A second call with improvements in communication and evaluation criteria was carried out until autumn 2018. About 30% of proposals in these two pilot schemes addressed problems or solutions that were classified as “social innovation”. A recurring pattern in these proposals was lack of or failure to provide sufficient funding to cover the total cost of the project (FFG funds up to 50% of total project cost). In addition to this FFG received feedback from the community of social innovators that a significant number of ideas was not even submitted because the potential applicants could not generate or demonstrate the necessary funds to completely fund the project (100%).
FFG therefore wants to test whether and how providing information on available public funding for social innovation projects will increase (or decrease) the chances to attract funding for the remaining 50% of project cost. This test will be run on a crowdfunding plattform for selected projects and – if the results are positive - increase the total amount of funding for successful social innovation projects and provide evidence for leverage effects of matched crowdfunding.
Keywords
Project’s keywords as indicated by the project coordinator. Not to be confused with the EuroSciVoc taxonomy (Fields of science)
Project’s keywords as indicated by the project coordinator. Not to be confused with the EuroSciVoc taxonomy (Fields of science)
Programme(s)
Multi-annual funding programmes that define the EU’s priorities for research and innovation.
Multi-annual funding programmes that define the EU’s priorities for research and innovation.
-
H2020-EU.2.3. - INDUSTRIAL LEADERSHIP - Innovation In SMEs
MAIN PROGRAMME
See all projects funded under this programme -
H2020-EU.2.3.2.2. - Enhancing the innovation capacity of SMEs
See all projects funded under this programme
Topic(s)
Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.
Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.
Funding Scheme
Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.
Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.
CSA - Coordination and support action
See all projects funded under this funding scheme
Call for proposal
Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.
Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.
(opens in new window) H2020-INNOSUP-2018-2020
See all projects funded under this callCoordinator
Net EU financial contribution. The sum of money that the participant receives, deducted by the EU contribution to its linked third party. It considers the distribution of the EU financial contribution between direct beneficiaries of the project and other types of participants, like third-party participants.
1090 Wien
Austria
The total costs incurred by this organisation to participate in the project, including direct and indirect costs. This amount is a subset of the overall project budget.