Grant process

1. 1
Main Focus of the Foundation’s Grant Policy
Requirements for Projects
100%
75%25%
50%
50%
25%75%
О
The grant is provided to help achieve the
objectives of the next stage
Project stage – technology readiness level
The project stage needs to be determined in
line with the Foundation’s Grant Policy
О
Only cash is accepted as Co-investor’s contribution
• Contribution to the Participant’s share capital (for LLC)
• Cash contribution to the Participant’s property (for LLC)
• Acquisition of the Participant’s shares (for joint stock
companies)
• Donation of cash to the Participant (for foreign Co-
investors)
R&D
IP
Commercia-­‐
liza3on
Project
Team
О
The requirements for projects, deadlines,
and budgets in the text of the Grant
Policy are exhaustive
О

2. 2
Key Requirements for Project Scope*
*these may change depending on the stage of the project and the Participant’s focus area
R&D
IP
Commercializa3on
Project
Team
• Specification for the Project’s product or technical
description of the first results of research
• R&D plan
• Formalized relations with IP authors
• Confidentiality requirements in place
• Prepared list of third parties’ IP required for Project
implementation
• IP protection in place (patent applications, patents)
• IP risks analyzed
• Competitive advantages substantiated
• Scope of target performance objectives defined
• Project Team formed with the necessary management,
research, and international experience

3. 3
Requirements for the Grant Recipient
The
Project
must
comply
with
• requirements
of
local
regula3ons
of
the
Founda3on
• project
eligibility
criteria
for
the
Grant
(see
Slide
5)
• law
requirements
of
the
Russian
Federa3on
The
Par4cipant
must
be
prepared
to
• describe
and
prove
the
compe33veness
of
the
Project
• improve
the
Project
if
required
by
the
Founda3on
• meet
all
the
Founda3on’s
requirements
at
every
stage
of
preparing
and
filing
the
documents
and
during
Project
implementa3on
Successful
comple4on
of
• internal
audits
by
the
Founda3on’s
offices
• external
audits
by
experts
from
the
Founda3on’s
pool
of
experts
• examina3on
by
the
Founda3on’s
Grant
CommiQee
(approval
of
the
Grant)

4. 4
Project Eligibility Criteria for the Grant
Project Concept/Know-How Implementation of the
Project Concept
Team
R&D solution with a high
potential for achieving
fundamentally new results
on a global scale
Patentable solutions
Project Concept in line with
the Foundation’s innovation
priorities and main business
areas
Technology’s applicability
confirmed by the Foundation’s
experts and its desirability in
the current situation
Properly structured Project
implementation concept,
business strategy, and
commercialization plan
Understanding of the Project’s
risks and a developed risk
diversification strategy
Grant Recipient’s cost estimate
and full Project budget
compliant with the Foundation’s
requirements
Productive Project Team with
a full range of necessary
competencies: research;
international promotion; robust
business management;
administration, etc.
Project Team having a leader
and a research champion
capable of inventing and
successfully commercializing
the Project’s product

5. 5
1. Application
2. Grant
Memorandum
3. Due Diligence
4. Grant
Committee
The Grant Committee
makes a decision on
grant approval
Overall Funding Process
Project improvement (a Mini-
grant may be issued)
Substantiated refusal
The Participant
prepares a presentation
in the required format
and submits it via
App.Sk.ru
or
The Foundation
checks the set of
documents for fullness
10 days
The Foundation
decides whether to
accept or reject the
application
The Participant e-mails
the Grant
Memorandum with
attachments to
grant@sk.ru
The Foundation’s
offices conduct an
audit and an external
examination
no more than 90 (+10) days
The Participant
receives the
examination results
Preparation for the
meeting of the Grant
Committee
~ 1.5 months ~ 2 weeks

6. 6
1. Formal check
2. Internal
examination
3. External
examination
4. Draft decision
of the Grant
Committee
The Grant Committee
makes a decision on
grant approval
Internal Examination of Project Materials by the
Foundation. Due Diligence
The Participant
prepares a presentation
in the required format
and submits it via
App.Sk.ru
The Foundation
checks the set of
documents for fullness
10 days
The Foundation
decides whether to
accept or reject the
application
The Participant e-mails
the Grant
Memorandum with
attachments to
grant@sk.ru
The Foundation’s
offices conduct an
audit and an external
examination
no more than 90 (+10) days
The Participant
receives the
examination results
Preparation for the
meeting of the Grant
Committee
~ 1.5 months ~ 2 weeks
Grant
and
Expert
Office(GEO)
-­‐ mee4ng
the
deadlines
-­‐ using
approved
forms
-­‐ consistency,
no
conflic4ng
data
-­‐ full
set
of
documents
Security
Office:
⁻ Ini4al
data
analysis
Finance
–
the
financial
part
Legal
–
the
legal
part
IP
Management
Centre
(IPMC)
–
IP
protec4on
part
Security
–
other
risks
GEO:
-­‐ commercializa4on
-­‐ team
-­‐ implementa4on
risks
-­‐ objec4ves
and
ac4on
plan
Due
diligence
of
the
Par4cipant’s
documents,
including
an
independent
research
examina4on
of
the
Project’s
Concept
by
experts
engaged
by
the
Founda4on
GEO
and
Cluster:
-­‐ consolida4on
of
informa4on
received
at
all
the
stages
of
examina4on
-­‐ preparing
and
finalizing
the
draQ
decision
of
the
Grant
CommiRee

7. 7
1. Formal check
2. Internal
examination
3. External
examination
4. Draft decision
of the Grant
Committee
Examination of Grant Recipients’ Projects
total
number
of
experts
in
the
Founda3on
pool
1,059
5
key
areas:
Energy
efficiency
Nuclear
technologies
Space
technologies
and
telecommunica3ons
Biomedical
technologies
Strategic
computer
technologies
Capacity:
•
Improved
project
quality
• Increased
aQen3on
from
the
professional
community
• Access
to
new
markets
• BeQer
compe33veness
The
expert
list
is
formed
on
a
compe44ve
basis:
•
Preliminary
selec3on
(scoring)
• Selec3on
including
competencies
test
• The
expert
is
responsible
for
the
quality
of
examina3on
Parameters:
Competencies
by
area:
• Research:
over
750
• Engineering:
over
550
• Business:
over
300
At
least
3
persons
apply
to
get
on
the
expert
panel
on
a
daily
basis
312
experts
409
experts
119
experts
517
experts
518
experts

8. 8
Report
submission
Part of the Grant
Issued
Examination by
the Foundation
In the event of negative expert
opinions, the final decision on the
Report is made by the Grant
Committee
Submission of Project Stage Completion Reports
Improvements to the
Report
Iden3fica3on
of
bad
faith
Grant
Recipients
The Participant prepares a
report in the approved format
The Foundation makes a decision
of whether to continue the
funding
or
To be sent to the cluster as hard
copy and in digital form
10 days from completion
The Foundation checks the
documents and accepts them
for examination
10 days from receipt up to 60 business days
A small amount of funding is
provided to cover cash gaps

9. 9
Grant Committee Project Approval Statistics
Applica4ons
examined
by
the
Grant
CommiRee
from
the
Founda4on’s
incep4on
un4l
December
31,
2013
BMT
cluster:
A
total
of
38,
including
23
approved
for
RUB
2,910.0
mln
ICT
cluster:
A
total
of
72,
including
53
approved
for
RUB
3,348.0
mln
ST
cluster:
A
total
of
18,
including
7
approved
for
RUB
416.5
mln
NT
cluster:
A
total
of
24,
including
15
approved
for
RUB
801.5
mln
EE
cluster:
A
total
of
45,
including
29
approved
for
RUB
2,107.2
mln
A
total
of
RUB
9,583.2
mln
of
grants
approved
RUB
902.6
mln
Total
grants
approved
in
2013
RUB
3,529.0
mln
Total
grants
approved
in
2012
RUB
4,692.0
mln
Total
grants
approved
in
2010–2011
A
total
of
RUB
7,215
mln
paid
out
RUB
4,247.6
mln
paid
out
RUB
2,532.0
mln
paid
out
RUB
436.0
mln
paid
out
RUB
2,269.8
mln
paid
out
RUB
2,502.2
mln
paid
out
RUB
392.7
mln
paid
out
RUB
1,721.0
mln
paid
out
RUB
329.4
mln
paid
out

10. 10
Key Reasons for Project Rejection by Grant
Committee
nega3ve
expert
opinions
no
viable
commercializa3on
prospects
no
sustainable
research
and
engineering
components
weak
project
presenta3on
at
Grant
CommiQee
mee3ng

11. 11
Foundation Monitoring System for
Project Participants’ Work
Desk audits
- conducted based on Research
Reports
- the first level of the
Foundation’s monitoring system
for Project Participants’ work
Field inspections
- conducted in the event of
negative findings at desk audit
level
- second monitoring level
Examination of Project
Stage Completion
Reports
Key
problems
Inappropriate
spending
(e.
g.
funds
used
for
Voluntary
Health
Insurance,
bonuses,
renova3on)
Contracts
with
affiliates
in
breach
of
the
Grant
policy
Accoun3ng
data
inconsistent
with
the
data
of
the
Grant
Recipient
‘s
Stage
Comple3on
Report
No
research
in
place
Failure
to
provide
requested
documents;
failure
to
provide
access
to
the
Par3cipant’s
premises
Substan3al
changes
in
the
Project’s
parameters
submiQed
when
the
Par3cipant
Status
was
awarded
Cons3tuent
documents
authorizing
ac3vi3es
other
than
research
Foundation’s
response to
detected
problems
Sending a request to address the
problem
Cancelling the Participant Status
Demanding return of funds
Reporting the issue to law
enforcement authorities
Follow-­‐up
methods