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Space Bridge Fund - a public-private early stage technology seed funding
Published on 06 December 2018
Poland
This is the good practice's implementation level. It can be national, regional or local.
About this good practice
The Fund intends to invest in start-ups realizing R&D projects in Proof of Concept and Proof of Principle stages by providing them initial non-equity financing before the start-up company is incorporated (“pre-equity investment stage”) followed by the private capital equity investment (20%) leveraged with a public grant (80%) (“equity investment stage”). The projects to be funded would be prepared by the high growth potential, technology oriented companies in space-related industries, so mainly operating in the sectors of Key Enabling Technologies (KETs).
The Fund’s objective is to combine the potential of an existing Professional network of Mazovia Cluster ICT, The Fund Strategic Partners, Key Technology Advisors and The Fund Managers in space industry and space-oriented scientific and academic institutions with The Fund Managers’ investment expertise in order to identify R&D projects with high commercial and international growth potential, provide them financing, build value and sell with a substantial capital gain for Private Investors.
Space Bridge Fund intends to invest in 20 early stage technology companies in the areas of Space and Satellite Technology and technologies using the space industry resources for development of products and services, which can be applied in other industry sectors. The funding for selected start-ups - up to 250,000 €.
The Fund’s objective is to combine the potential of an existing Professional network of Mazovia Cluster ICT, The Fund Strategic Partners, Key Technology Advisors and The Fund Managers in space industry and space-oriented scientific and academic institutions with The Fund Managers’ investment expertise in order to identify R&D projects with high commercial and international growth potential, provide them financing, build value and sell with a substantial capital gain for Private Investors.
Space Bridge Fund intends to invest in 20 early stage technology companies in the areas of Space and Satellite Technology and technologies using the space industry resources for development of products and services, which can be applied in other industry sectors. The funding for selected start-ups - up to 250,000 €.
Resources needed
The total targeting capital commitments to the instrument: 10.476.000 EUR (44.000.000 PLN)
General Partner (private capital commitment): 2.096.000 EUR (8.800.000 PLN) which comprises a minimum 20% of the total instrument capitalization required to enable the public-private investment instrument.
General Partner (private capital commitment): 2.096.000 EUR (8.800.000 PLN) which comprises a minimum 20% of the total instrument capitalization required to enable the public-private investment instrument.
Evidence of success
Initial screening of 460-700 R&D projects, including projects from KETs oriented industries.
Potential for learning or transfer
The Space Bridge Fund might be considered as interesting practice to learn from because it gives opportunity to the interested parties (like state or regional authorities) to cooperate with private investors which meet the criteria of micro or small enterprises and have experience in incubating innovative ideas. These companies supported by non-returnable funds are enforced to become “investment vehicles”. They are designed to enable market entry for innovative projects, carry them through the proof-of-principle and proof-of-concept phases, and provide them with services necessary to transform into spin-offs. Investment vehicles should provide researchers with comprehensive support for their ideas as well as business and legal assistance, so that inventors can safely carry out research, while remaining co-owners of patents and companies established. The network of vehicles would create an ecosystem to support spin-off incubation.
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