All cases will be considered based on our own experience in developing the SLONBOOK online recording service , the history of the creation of which I described in the previous article .
Money can not be returned
A grant is targeted funding, usually from the state, which does not require a return, provided that the money is spent in a targeted way.
For example, if you took money to build a bridge and actually built a bridge, then you will not need to return the money. However, if an underground tunnel was built instead of a bridge, the money would have to be returned.
How much do they give
The Fund provides for several different project support programs. Each program is suitable for a specific case. Here are some of the Foundation's programs:
UMNIK : up to 500 thousand rubles for two years. Ideal for a student or graduate student who is thinking about a startup while still at university. The advantage of the program is that the project does not require the creation of a legal entity. Certain disadvantages, well, or peculiarities: a small grant size and a rather long project implementation period (2 years).
START-1: up to 2 million rubles for one year. Suitable for small projects at the idea or prototype stage. A team of up to 3 people is enough to participate in the competition. Submission of an application does not require the creation of a legal entity - its creation will only be required in case of winning the competition. However, if a legal entity already exists, you can also submit on its behalf: the main thing is that at the end of the deadline for accepting applications for this competition, it should be no more than 2 years old.
START-2: up to 3 million rubles for one year. It is a continuation for projects that have successfully completed START-1, but submission is also possible for companies that have not previously passed START-1. Following the results of the project implementation under the START-2 program, it will be necessary to start selling the product for the creation of which the grant funds were attracted. Co-financing is required in the amount of 50% of the amount of the requested grant (up to 1.5 million rubles).
START-3 : up to 5 million rubles for one year. Participants of the competition are required to successfully complete the START-2 program in advance. Also, as under the START-2 program, co-financing is required in the amount of 50% of the amount of the requested grant (up to 2.5 million rubles).
BUSINESS START: 10 million rubles for one year. Suitable for projects that have previously completed any START. It is a logical continuation of the START-1,2,3 program, within the framework of which an innovative product was previously created. The BUSINESS START program, unlike the START programs, does not provide for R&D - the fund's funding is allocated for business development! Co-financing is required in the amount of 50% of the amount of the requested grant (up to 5 million rubles).
Programs, terms and amounts may change over time. The article describes the current data for 2020. Read more on the Foundation's website . Our project was carried out under the START-1 program and received funding in the amount of 2 million rubles. for a period of 1 year.
At the date of preparation of this material, there is a selection of projects for the competition for programs START-1,2,3 with a deadline for applications until January 20, 2021.
What's the catch?
For a startup, it sounds tempting to take the money and not return it. However, not all so simple. There are features on the path of grant money that a budding entrepreneur needs to know. First, you need to get a grant. Second, you need to create a product. Thirdly, it is necessary to report on the work performed and on the targeted use of the grant funds. Only if all three conditions are met can we talk about successful attraction of a grant. Out of inexperience, entrepreneurs consider it a success to receive a grant. But in fact, success is about creating a product and closing obligations to the Fund. To get a grant, you have to work hard. You have to work hard to create a product. But in order to report on the work done to the Foundation, you need to work twice.
Thesis
- you can attract money to a startup at an early stage;
- gratuitous financing is possible subject to the intended use;
- it is difficult to enter the Fund, but it is even more difficult to leave the Fund;
- when planning work, it is necessary to lay in the time and budget for the preparation of reporting documentation.
To be continued
In the second part I will tell you how to “enter the Fund”: from preparing an application and defending a project in front of an expert council, to drawing up a technical task and concluding an agreement with the Fund. I will outline the features that should be paid attention to at the stage of project protection and agreement conclusion.
In the third part, I will tell you how to “exit the Fund”: all the features of preparing reporting documentation for the stages of work and I will share the conclusions that I made for myself during the execution of work on the project:
- is it worth it for a startup to get involved in this difficult business;
- is it possible to master the work alone;
- in what cases grant money develops the project, and in what cases it slows down;
- where and how you can insure yourself.
Thanks
I would also like to thank Alexander Loktionov , the founder of LOGA Group , who helped me to timely determine the direction of development of my project and provided significant assistance in preparing the tender documentation for submission to the Fund.