Life hacks for EU funding: How to turn project writing into a winning game

There is much more money than we need. The problem is that we don't know how to get it. This is how Anton Todorov, CEO of New Eye, opened the seminar "Cohesion in Action" in Pernik. He gave practical guidance on how to prepare a successful project, when it makes sense to compete for European funds, and other "tricks" for Eurofunding.

His approach is pragmatic: if the chance of success is less than 30%, he doesn't even open his laptop. But if it's above that percentage, he knows how to get it to 100%.

The event is part of the Corejio project, which works with the mission of "multiple regions in sync for a just transition." The organizers are the Agency for Regional Economic Development – Stara Zagora, with the media partnership of Brand Media Bulgaria, publisher of Economic.bg, and Stara Zagora Television.

The Valley of Death and Technology Readiness Levels (TRL)

Understanding the "Valley of Death" and Technology Readiness Levels (TRL) is the difference between getting funding and wasting months writing a project that is doomed from the start. In business, every innovation goes through a critical period when the idea has already left your head but is not yet profitable – this is the "Valley of Death," where most startups die because they run out of money before reaching the market.

To avoid getting lost in this valley, Brussels uses the TRL (Technology Readiness Levels) scale – nine levels that measure how "mature" your technology is.

• TRL 1-4 is the zone of laboratories and first prototypes (scientific research);
• TRL 5-7 is the phase of real-world testing in a working environment;
• TRL 8-9 is the finished product that is already on the store shelf.

The big mistake that businesses often make is "misaligning the phases." If you need money to buy a modern production machine (investment) but apply for a research program, you will be rejected.

The key here is to understand the difference between "research" and "deployment." If you want to buy a machine, look for deployment programs. If you want to invent something new, look for research programs. Don't confuse them, because your project will be rejected right from the start, warned Todorov.

"Seal of excellence"

The biggest paradox lies in the so-called centralized programs, managed directly from Brussels. Competition there is brutal – you are competing on equal footing with the best innovators from Germany, France, and the Netherlands, and the chance of direct funding is only 4 – 5%. Most Bulgarian companies give up at this point, but they miss the big picture: the point is not just the money from the EC, but their uncompromising assessment.

When a project passes the rigorous screening of Brussels experts and is recognized as "excellent," but the budget at the central level is exhausted, the applicant receives a Seal of Excellence. This is not just a consolation certificate for the wall, but a "golden ticket" that changes the rules of the game at home.

Our Ministry of Innovation and Growth has a specially allocated budget that is waiting for precisely these projects to finance them automatically at the local level. The ministry has a budget of €20 million that is waiting for companies with such a seal. They receive their funding (up to €2.5 million) almost automatically, without re-evaluation.

At the moment, there are no projects that can reach out and take this money," says Todorov.

"Bonus points"

The state evaluates projects based on objective criteria. You can prepare your company months in advance to be the "perfect candidate." According to Todorov, it is important to have your accountant diligently fill out the research and development activity report (R&D). It is not mandatory, but when applying for innovative programs, it gives critically important points. Without it, even the most ingenious innovation seems "unproven."

Check the code of your economic activity. If you are a "trader," you often receive 0 points. However, if your activity allows you to re-register as a "manufacturer" or "knowledge-intensive service," do so. This is a legal way to enter the priority sectors that the state wants to finance.

Many programs award points for patents, but sometimes it takes years to obtain one. To avoid this wait, Todorov comments that you can register a "utility model." The procedure takes 2 – 3 months and costs about BGN 800.

Assessors often treat utility models almost like patents. If you need 2 points to beat the competition in Southwest Bulgaria, this is the way to go. There is currently a voucher scheme that covers 75% of the costs of such registration.

The "three projects" strategy and monitoring in ISUN

Todorov reveals his tactics during the application process itself. By monitoring ISUN in real time, you can see how many projects have been submitted and how much money has been requested. If you see that only 6 projects have been submitted and the budget is for 70, then it's time to submit your documents.

Todorov often prepares three versions of a project – a normal one with a realistic budget, an optimistic one, and a pessimistic one. At the last minute, based on how much competition has appeared in ISUN, he submits the final version, which replaces the previous one.

The requested funding intensity is important. According to Todorov, sometimes it is better to request 50% instead of 65%. Why? Because below certain thresholds, the administrative burden and procedures for selecting a contractor are much lighter. You save yourself months of bureaucracy and checks, which often cost more than that 15% difference.

Even if your company is not suitable for a project, you can still benefit from EU funds. Keep track of who wins projects. If you see a list of 30 companies that have received money for "digitization" or "cheese machines," these are your new solvent customers. They have a guaranteed budget. Your job is to go to them and offer them your equipment or software.

Translated with DeepL.