In our vision for a modern, sustainable, and innovative Europe, digital transformation serves as a cornerstone for uplifting communities and industries. While large corporations often have the resources to lead this charge, small and medium-sized enterprises (SMEs) face significant barriers, particularly in securing financial support to drive innovation. These challenges can make turning ambitious ideas into impactful solutions daunting. This is where Financial Support to Third Parties (FSTP) steps in – bridging the gap and enabling SMEs to thrive.
Consider the AMULET project, a compelling example of how SMEs can leverage innovation through funded, cross-sector collaboration. By encouraging the use of advanced lightweight materials across industries like automotive, aerospace, energy, and construction, AMULET provided SMEs with up to €60,000 in funding each. This initiative underscored the transformative power of regional and sectoral partnerships. How? This article explores the mechanics of cascade funding, application processes, and key takeaways from the project.
Why Cascade Funding?
Innovators fuel economic growth by introducing new products, services, and processes. They create market opportunities, transform industrial value chains, generate employment, and contribute to business development – ultimately enhancing the way we live and work. Despite their importance, accessing external funding remains a persistent challenge for many European innovators and businesses.
Recognizing this gap, the European Commission introduced a groundbreaking solution in 2013: Cascade Funding. This mechanism simplifies access to financial resources for startups, SMEs, and entrepreneurs, enabling them to turn ideas into reality and drive meaningful impact. [1]
What is Cascade Funding?
Also known as Financial Support for Third Parties (FSTP), cascade funding is a European Commission-backed tool that efficiently allocates public funding to beneficiaries such as startups, SMEs, and mid-caps. Its primary goal is to foster digital innovation and enable Europe’s economic and technological growth.
Here’s how it works:[2]
How Cascade Funding operates
The cascade funding mechanism simplifies and accelerates the application process by leveraging intermediary organizations. These consortia of partners streamline administrative procedures, manage funds, and offer support and training to beneficiaries.
Funding flows through three stages:
This approach allows companies to test advanced digital technologies in controlled environments before committing to large-scale investments, thus mitigating risks.
Target Beneficiaries and Key Sectors
Cascade funding supports a diverse range of beneficiaries, including:
- Entrepreneurs and startups.
- Innovative SMEs and mid-caps adopting new technologies.
- Universities and Research and Technology Organizations (RTOs).
The initiative addresses technological fields such as[3]:
Over 2-3 months, innovators can apply by proposing products or services that address a defined challenge. A rigorous evaluation process follows, ensuring only the most promising candidates receive funding to bring their ideas to life.
Building an accessible Application Platform
To reach potential applicants effectively, a dedicated platform is essential. This serves as a central hub, offering:
- A user-friendly Open Call website.
- Resources like an Applicant’s Guide and webinar recordings.
- A streamlined application form.
These tools simplify the application process and provide clear information, ensuring accessibility for all eligible participants. An excellent example of an ideal online platform for effectively reaching potential applicants is OnePass[4]. This platform offers access to hundreds of funding opportunities, conveniently searchable by topic. Once registered, users can apply for various funding opportunities directly through the platform. OnePass serves as a matchmaking hub, connecting funding donors with funding seekers across public and private sectors, streamlining the process for all parties involved. Access to Onepass:
Evaluation and Selection Process
The cascade funding process adheres to strict criteria set by the European Commission:
Key Steps:
Within five months of submission, applicants are informed of their results. Finalists gain access to a support programme that propels their innovation to the next level.[5]
Lessons learned from AMULET
The AMULET project demonstrated the transformative potential of cascade funding. By fostering cross-sector collaboration and supporting SMEs with up to €60,000 each, it enabled the adoption of cutting-edge lightweight materials across key industries. AMULET served as a powerful example of how regional and sectoral cooperation can drive innovation.[6]
Summary
Cascade funding stands as a testament to Europe’s commitment to fostering innovation. By simplifying access to financial resources and empowering innovators, it fuels economic growth, addresses societal challenges, and shapes a sustainable future. For SMEs and innovators, the message is clear: seize the opportunity, transform your ideas into impact, and contribute to a thriving Europe. Just like AMULET beneficiaries!
[1] https://webgate.ec.europa.eu/funding-tenders-opportunities/pages/viewpage.action?pageId=25559615
[2] https://sploro.eu/understanding-cascade-funding-in-four-essential-elements/
[3] https://eucalls.net/blog/what-is-cascade-funding
[4] https://getonepass.eu/search/opportunities
[5] https://webgate.ec.europa.eu/funding-tenders-opportunities/display/OM/Admissibility+and+eligibility+check
[6] https://amulet-h2020.eu/
