This document represents extracted and updated Guide for Applicants, version 2, where all information relevant for the Open Call 2 (Call for Product/Services) and Crowdfunding campaign have been elaborated and updated in details due to previously implemented and accepted extension of Open Call 1 by European Commission. KATANA Open Call 2 Guide for Applicants is the only legally binding document with respect to KATANA Open Call 2. Any other material provided by KATANA Consortium to promote Open Call 2 is for informative purposes only and thus cannot be considered as legally binding.
1. KATANA Open Call 2 – Call for Products/Services
The second open “Call for Products/Services” aims to identify products and services with high market potential. Cross-border (from different eligible countries) and/or cross-sectoral (from different sectors) consortia of 2-4 members each are invited to participate in the second call, providing that at least one (or more) of the partners in each Consortium was among the winners/beneficiaries of KATANA Open Call 1 and has successfully participated in the KATANA training program. The winner of KATANA Open Call 1 must be the leader of newly formed Consortium. If the above criteria has been met, the leader will be the representative of the Consortium with whom KATANA will sign the Sub-Grant Agreement. In case of two winners of Open Call 1 in the same Consortium, the beneficiaries themselves have to mutually agree who will be the leader of the Consortium. Each consortium must propose one product/service from one of the following categories: Precision Agriculture Services, Mobile Services and Functional Foods. It is highly recommended that each consortium’s product/service uses at least one of the three LSD platforms. KATANA will provide the technological framework for three large scale demonstrators (LSDs) in selected emerging industries tangent with the challenges of the agrifood sector.
For the KATANA Open Call 2, Consortia apply by preparing a Reward Crowdfunding Campaign. The winners of the Open Call will be the three products/services from each category (Precision Agriculture Services, Mobile services and Functional Foods) (totaling 9) that will receive the highest amount of contributions in euros and one (1) the next best regardless of category (10 products/services in total) in terms of raising money/received contributions during the Reward Crowdfunding campaign. Those winners will receive 100,000 EUR per consortium (20,000-50,000 EUR per SME/entrepreneur). On top of the 100,000 EUR, consortia will receive 2nd stage support services, e.g. Investment Readiness Program, E-Pitches in front of investors, Export Promotion Training. Also, they will be given access to the KATANA Equity Crowdfunding platform in order to raise an additional funding from private investors to support their expansion. Estimated potential amount of funding raised is calculated to 100.000 EUR, however other amounts can also be considered, based on the needs of the beneficiaries and their business plans for future expansion. KATANA consortium cannot guarantee that private investors will be interested to invest in specific product/service and thus the additional funding will depend on the individual team’s ability to attract private capital. KATANA consortium reserves the right to also invite the non-successful 1st stage beneficiaries to the Equity Crowdfunding platform. Participation in Equity Crowdfunding will be optional for KATANA 2nd stage Beneficiaries.
2. Applicants eligibility
The accepted applicants for KATANA Open Call 2 have to be:
Natural persons and companies that comply with the Commission Recommendation for Small or
Medium-sized Enterprises (SMEs) 2003/361/EC11
Applicants based in Member States or H2020 associated countries, of August 17th, 2015
Additional eligibility criteria:
Consortium must be formed by minimum two (2) and maximum four (4) partners, where at least
one of the partners is a successful beneficiary from Open Call 1 whom also has to be the leader of
Consortium must fulfil at least one of the following criteria:
From the same sector, but different countries (Cross-border), or From different sectors but the same country (cross-sectoral), or Both from different sectors and different countries.
Consortium must propose one product/service from one of the following categories: Precision Agriculture Services, Mobile Services and Functional Foods. It is highly recommended that a consortium’s product/service uses at least one of the three LSD platforms.
Examples of eligible consortia:
Important notice 1: The examples above are indicative aiming to give concrete examples to interested applicants. Applicants from all eligible countries (see 2.1) operating in all eligible sectors are welcome to apply for funding as long as all eligibility criteria mentioned above are met.
2.1 Eligible countries
Participants, either SMEs, start-ups established in the following countries and territories or natural persons2 that are residents of the following countries will be eligible to receive funding through Horizon 2020 grants3:
a. European Union countries including their overseas departments
European Union countries: Austria, Belgium, Bulgaria, Croatia, Cyprus, Denmark, Estonia,
Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Czech Republic, Romania, Slovakia, Slovenia, Spain, Sweden, United Kingdom;
The Overseas Countries and Territories (OCT) linked to the Member States: Anguilla, Aruba, Bermuda, Bonaire, British Indian Ocean Territory, British Virgin Islands, Cayman Islands,
Curaçao, Falkland Islands, French Polynesia, French Southern and Antarctic Territories, Greenland, Montserrat, New Caledonia, Pitcairn Islands, Saba, Saint Barthélémy, Saint Helena, Saint Pierre and Miquelon, Saint Eustatius, Saint Maarten, South Georgia and the South Sandwich Islands, Turks and Caicos Islands, Wallis and Futuna.
b. H2020 Associated countries4: Iceland, Norway, Albania, Bosnia and Herzegovina, the Former Yugoslav Republic of Macedonia, Montenegro, Serbia, Turkey, Israel, Moldova, Faroe Islands, Ukraine, Tunisia, Georgia;
3. General information
3.1 Important Dates
All the consortia have a deadline to submit their draft Consortium Declaration until 31 August 2017, 17:00 CET using the template provided by KATANA.
The deadline to submit the signed and scanned Consortium Declaration via email is 15 September 2017, 17:00 CET.
Detailed information related to registration procedures can be found in Chapter 4.
The deadline to submit the Reward Crowdfunding campaign through the KATANA Reward Crowdfunding platform is 15 September 2017, 17:00 CET for final check and approval by KATANA team. Once approved or corrected if applicable, the Reward Crowdfunding campaign has to be officially submitted and launched until 30 September 2017, 17:00 CET on the KATANA Reward Crowdfunding platform.
Any campaign submitted after 30 September at 17:00 CET will be automatically rejected from the Call. 3.2 Projects Funding
Supported by the European Union (EU), the total budget for KATANA Open Call 2 is 1,000,000 €. In addition to the money that Consortia have collected through the Reward Crowdfunding campaigns, the three products/services from each category (Precision Agriculture Services, Mobile services and Functional Foods) (totaling 9) that will receive the highest amount of contributions in euros and one (1) the next best regardless of category (10 products/services in total) in terms of raising money, shall receive additional funds, 100,000 EUR per consortium. The value of each grant cannot exceed 100,000 € per Consortium (Consortium of 2-4 partners, where the grant can be max. 50,000 € per applicant, min. 20,000 € per applicant).
3.3 Means of submission
The KATANA Reward Crowdfunding platform - will be the entry point for all Reward Crowdfunding campaigns for products/services in the Open Call 2. This platform will be specifically created for the needs of KATANA Open Call 2. The link for KATANA Reward Crowdfunding platform is https://katanareward.opencircleproject.com/ .
English is the official language for KATANA Open Call 2. Submissions done in any other language will not be evaluated.
3.5 Origin of the funds and legal issues
For all selected Consortia, the appointed Consortium leader will sign a dedicated Sub-Grant Agreement with the representative of KATANA consortium. The funds attached to the Sub-Grant Agreement come directly from the funds of the European Project KATANA via the European Commission Grant Agreement Number 691478, and are, therefore, funds owned by the European Commission.
As it will be defined in the Sub-Grant Agreement template, this relation between the sub-grantees and the European Commission through KATANA project carries a set of obligations to the sub-projects with the EC.
The Consortium leader is solely responsible to disburse the budget shares to Consortium partners in accordance to the signed Consortium Declaration. KATANA Consortium bears no responsibility in case the Consortium leader violates the mutual agreement set in Consortium Declaration.
The Consortium leader undertakes all possible legal responsibilities in case of legal disputes between Consortium and supporters/backers.
KATANA Consortium bears no responsibility in case of dispute among Open Call 2 Consortium partners regarding IP rights and allocation of profit generated through campaigns.
In case any of the KATANA Open Call 2 Consortia uses KATANA Reward Crowdfunding platform, KATANA Social media channels, KATANA collaboration platform or other means provided to KATANA beneficiaries by KATANA project, to intentionally damage KATANA project reputation or for other reasons not related to KATANA project, KATANA project Consortium reserves the right to exclude this Open Call 2 Consortium and to protect its legitimate interest through legal actions.
3.6 Number of proposals per applicant
The applicants can be part of only one Consortium and submit only one campaign. In case, an applicant participates in more than one Consortia, both Consortia/Campaigns will be excluded.
3.7 Points of contact
For all questions related to Consortium forming, eligibility and other administrative issues, please contact email@example.com.
For all questions related to Reward Crowdfunding campaign, please contact firstname.lastname@example.org.
4. Applicants registration
4.1 Consortium forming and registration
The first step for official registration for KATANA Open Call 2 is preparing the Consortium Declaration. The Consortium Declaration will contain information on all partners, their legal representatives, country of legal establishment, sector, budget share and Bank Account information that will be used for the transfer of contributions raised through the Katana Reward Platform and for the transfer of KATANA funds in the case the consortium becomes a beneficiary of the Open Call 2. The administrative team will use this document to cross-check the eligibility of the Consortium.
The prepared Consortium Declaration has to be sent to: email@example.com until 31 August 2017, 17:00 CET using the template provided by KATANA.
Once approved by KATANA administrative team, the Consortium will be assigned an Official Consortium number which we will be required in the process of submission of Reward Crowdfunding Campaign on the Reward Crowdfunding platform.
A scanned approved Consortium Declaration, signed and stamped (if applicable) by all partners, with the assigned official Consortium number, has to be sent until 15 September 2017, 17:00 CET to the KATANA administrative team on: firstname.lastname@example.org.
4.2 Reward Crowdfunding campaign registration
The approved Consortium shall register at the KATANA Reward Crowdfunding platform. The deadline to submit the Reward Crowdfunding campaign is 15 September 2017 for final check and approval by KATANA team. Once approved or corrected (if applicable), the Reward Crowdfunding campaign has to be officially submitted and launched until 30 September 2017, 17:00 CET.
Any campaign submitted after 30 September at 17:00 CET will be automatically rejected from the Call. 4.3 Proposal/campaign preparation for reward crowdfunding
The application is to be uploaded in 4 steps:
4.3.1 STEP 1: Campaign Basics
Consortium Number – Number assigned together with approved Consortium Agreement
Featured Image - This image will be used for the campaign card thumbnail and the featured image on
the campaign page if the video URL is not defined. Image resolution requirement: 1336 x 1002.
Title - Unique title for campaign to engage users
Video - YouTube, vimeo or external video link. This will be displayed as the featured video on the
campaign page if the link is specified. Note that video link must be accessible publicly
Thumbnail Video (Optional) - If thumbnail video link is specified it will replace the featured image of the campaign. Thumbnail video can be YouTube, vimeo or external video link. The video link must be
Blurb - The campaign blurb will appear in campaign's thumbnail and at the top of campaign page.
Top Header Image (Optional) - This image will display as a promotional image for campaign or if Consortium would like to enhance the look of their campaign page. A link can also be specified if they want to redirect users to a certain link. Image resolution requirement: 1280 x 280.
Category – Consortium will need to pick a category and Sub Category of their campaign.
Funding Goal – Consortium’s funding goal should be the minimum amount needed to complete the
project and fulfill all rewards. All campaigns are in €.
4.3.2 STEP 2: Details
1. Campaign Details:
Appointment of Campaign Manager
Description of Campaign
Google Analytics ID (Optional)
4.3.3 STEP 3: Rewards
Settings – Rewards Pagination
Campaign Rewards – List of Rewards
4.3.4 STEP 4: Consortium Profile
1. Profile information including name, short description, logo/image, address, phone and links.
4.4 Evaluation criteria and process
The Consortium that will be formed after the Open Call 1 will be asked to launch crowdfunding campaigns with three major requirements:
3) They must be able to create traction, by sharing that product or service through direct marketing
campaigns (email), social media campaigns and any other relevant activity, asking for financial support, anticipating specific questions from potential supporters and making compelling asks.
Important notice 2: The KATANA project Consortium reserves the right to reject a campaign for reasons ranging from technical errors, incomplete information or in case it carries a risk of fraud, according to the Code of Conduct of the European Crowdfunding Network – ECN (http://www.eurocrowd.org/about- us/code-of-conduct-2/)
Important notice 3: In order to ensure transparency, the supporters of Reward Crowdfunding Campaigns cannot be anonymous. All anonymous contributions will be rejected.
Important notice 4: All Consortia are responsible for the Marketing of their ideas and the Promotion through Social Media. KATANA will promote the KATANA Reward Crowdfunding platform only and will not
be considered responsible in the case that the consortia cannot promote their product/service sufficiently.
The KATANA reward crowdfunding platform will provide a formalized channel in a form of message center through which the Consortia will be able to answer the questions of potential customers/early adopters/contributors, build their confidence and persuade them to support and share their crowdfunding campaigns.
It is a requirement that all crowdfunding campaigns clearly mention that in case they achieve to be among the top 10 consortia (the best three products/services from each category and the one (1) next best product/service regardless of category) in terms of amount raised they will receive additional 100.000 EUR from KATANA project. Amounts raised will be transferred to all consortia in maximum fifteen (15) working days, after the end of the crowdfunding campaigns, providing that no complaints on behalf of backers have been filled. Contributions from backers can be linked or not to rewards. All rewards promised to contributors should be delivered in the set timeframe regardless of the amount raised. Consortia unable to deliver the set rewards to contributors will not receive any funds and the money will be returned to contributors after the completion of the campaign.
4.5 Award criteria for Open Call 2
The three products/services from each category (Precision Agriculture Services, Mobile services and Functional Foods) (totaling 9) that will receive the highest amount of contributions in euros and one (1) the next best regardless of category (10 products/services in total) in terms of raising money, shall receive additional funds, 100,000 EUR per consortium.
4.6 Campaign Duration
All campaigns shall be live for three (3) months. Starting from 01.10.2017 and lasting until 31.12.2017.
4.7 KATANA Reward Crowdfunding platform Webinar
Starting after the Bootcamp, there will be four (4) sets of Live Webinars explaining the application process and uploading of Campaign and Consortia information on the KATANA Reward Crowdfunding platform.
5. KATANA services for 2nd stage beneficiaries
5.1 Financial support
The three products/services from each category (Precision Agriculture Services, Mobile services and Functional Foods) (totaling 9) that will receive the highest amount of contributions in euros and one (1) the next best regardless of category (10 products/services in total) in terms of raising money, shall receive an additional 100,000 EUR financial support from KATANA by signing Sub-Grant Agreements with the KATANA consortium.
The objective of this financial support is to assist the 10 consortia in evolving the prototypes selected through the reward crowdfunding campaign to complete and qualified products/services to the market (TRL-8 and TRL-9). Specific activities related to this objective may be:
Adjustment and fine-tuning of the product/service according to the feedback received from early adopters/ supporters of reward crowdfunding campaign.
Testing and validation of the product/ service in a real operating environment by a broad range of potential customers.
Standardization/ quality assurance and implementation of quality management systems.
Marketing activities, branding (incl. design and development of packaging for physical products) and design/ development of marketing material (incl. digital marketing campaigns)
Participation in events/ exhibitions and other promotional activities
Other activities that aim to increase the TRL of products/ services and bring them to the market may also be eligible, upon approval of KATANA consortium.
The KATANA project Consortium will closely monitor this allocation of resources and the financial support to all Consortia will be based upon the review of deliverables. The sub-grants are considered as a global amount deemed to cover all costs of the action or a specific category of costs i.e. lump-sum costs as defined in Article 5 of H2020 AGA — Annotated Model Grant Agreement. The Article 5 of latest H2020 AGA — Annotated Model Grant Agreement provided by EC can be found on the following link: http://ec.europa.eu/research/participants/data/ref/h2020/grants_manual/amga/h2020-amga_en.pdf
5.1.1 Sub-Grant Agreements - contracting phase
In order to prepare the Sub-Grant Agreements and to get trustworthy and acceptable proof of SME status according to the Commission Recommendation 2003/361/EC, ten (10) successful Open Call 2 Consortia will be asked to provide following set of documents for all Consortia partners:
Declaration of Honour
SME administrative form
SME check list
SME Financial validation
Extract of registration
ID-card or Passport copy of legal representative
The companies that declare that they are linked or partner enterprises, will be asked to send also Declaration with information on the SME qualification.
5.1.2 Sub-projects reviewing
KATANA Sub-project have a foreseen duration of ten (10) months. During the contracting phase and apriori of KATANA Sub-Grant Agreement signature, the Consortia will be asked to provide allocation of resources, timetable, milestones and deliverables based upon a pre-defined template that will be an Annex to the Sub-Grant Agreement. Requested information that will be part of Annex to the Sub-Grant Agreement can be found below:
1. Personnel costs
2. Other direct costs (travel, equipment, software, services, etc.)
3. Total direct costs (Sum of row 1 and 2)
4. Indirect costs (25% of Total direct costs)
5. Total costs (Sum of row 3 and 4)
The Open Call 2 Consortia are requested to provide their planned allocation of resources; however, the sub-grants are considered as a global amount deemed to cover all costs of the action or a specific category of costs i.e. lump-sum costs. Therefore, the Consortia will not have to justify or report their costs.
(TABLES NOT AVAILABLES)
In order to support beneficiaries in their project planning, the official project proposal document, that will be the Annex to the Sub-Grant Agreement, will be sent to all Consortia after official launch of their Reward Crowdfunding campaign – October 1st, 2017.
Beneficiaries will be required to report their technical progress and any problems or issues occurring during their project implementation according to their initial plan of deliverables, milestones and timeline. In addition, the beneficiaries will have to report their activities and progress through one interim report and one final report using the template provided by KATANA, respecting the following deadlines:
(TABLE NOT AVAILABLE)
5.1.3 Financial reimbursement
The advance payment will be received once the Sub-Grant Agreement has been signed by both parties. The reimbursement will be deliverable based and will be provided once all deliverables and reports of the reporting periods have been submitted and accepted. All reports and deliverables will be reviewed in fifteen (15) days after the submission deadline. After the acceptance, the reimbursement will be processed in fifteen (15) days (Interim report – 31.07.2018. and Final report – 31.12.2018.).
The reimbursement will be provided in three stages during the project implementation as follows:
Important notice 4: The KATANA project Consortium reserves the right not to sign the Sub-Grant Agreement with Open Call 2 Consortia in case involved parties fail to reach the consensus during the contracting phase. In case Consortium that fails to reach the consensus is among three first from one of the categories (Precision Agriculture Services, Mobile services and Functional Foods), the first next on the Reserve list from the same category will be invited to the contracting phase and to sign Sub-Grant Agreement. If the Consortium that fails to reach the consensus is the 10th Consortia chosen as next best regardless of category, the first next on the Reserve list in terms of raised money regardless of category will be invited to the contracting phase and to sign Sub-Grant Agreement.
5.2 Investment readiness programme – Equity Crowdfunding Campaigns
The investment Readiness Programme will be adopted for Consortia that have been chosen to proceed to the equity crowdfunding stage. In order to get through that, each Consortium will need to match a 40 criteria benchmark that is used to evaluate their potential and their position in the market. The evaluation is done on a binary basis (0-1), i.e. either the company meets the criterion or not. If not, through the program our trainers will try to improve so as to match.
This programme is split in two phases. During the first one, the programme will focus on:
The business plan that explores the business environment, opportunities and relative assessment,
The financial plan that translates all the above to a concrete model for the following 5 years.
The presentation of the project like the pitch, the marketing, etc.
In the second phase, the further preparation will be in two major fields:
• The investment offer shall be fully prepared including the term sheet and even more the shareholders agreement, and
After all the aforementioned packages, consortium will be fully ready to go out to the market and raise the capital that is described as needed in their financial plans.
5.3 Coaching services
The KATANA project will support beneficiaries in getting access to business angels and VCs and will prepare them thoroughly for financial and legal issues related to negotiations with private investors.
First of all, beneficiaries will get access to dedicated online webinars on topics such as Finance & Accounting, Negotiation with investors, International Marketing and Trademark Rights. Also, KATANA will offer all 2nd stage beneficiaries the opportunity to get in touch with KATANA experts and coaches in order to discuss final questions with respect to their business and financial plans.
Beneficiaries will then be given the opportunity to present their ventures to various external stakeholders (e.g. experts, investors, VCs, serial entrepreneurs, potential customers or partners) in online pitches, consisting of a three minutes project presentation via Skype. The audience will get the chance to ask questions during the online session and will be asked to provide feedback on the ideas they have listened to afterwards.
Being both, investor and market ready, Consortia can apply for a two (2) day coaching & investment forum where they can pitch their ventures in front of corporates, VCs and investors.
5.4 Export promotion training
KATANA will provide training courses to the beneficiaries that will enrich their key skills to design a successful plan in export promotion. The beneficiaries will get skills on how to get market information, which are the European/rest of the world buying strategies, which are the main export networks and other opportunities. Specific module of the e-learning training course will be dedicated to:
the trade structures in the European Union;
various marketing and trade promotion techniques
how to carry out research on the European market;
how to design and implement an export marketing plan;
how to match your exporters’ needs and products with EU market requirements;
The trainers of these modules will be export managers of multinational companies, experts in internationalizations and, for the focus on BRICs, country managers of the ICE – Italian Trade Promotion Agency, with vast experience in each of the targeted countries. For the beneficiaries, in addition to the e- learning course, it will also be possible to schedule one-to-one Skype meetings with member of the KATANA consortium (8 countries represented) that can provide them with specific information about their country and will help the beneficiaries to set up their export promotion plan.