The Innovation Credit is a loan program provided by the Dutch Enterprise Agency (RVO) designed to support high-risk, innovative projects in technical and clinical development. Applicants can request up to €10 million for technical projects and €5 million for clinical projects, covering 45% of the project.
Securing Innovation Credit funding can propel your project forward, but it’s crucial to approach the application strategically. How to secure this funding? Here are five expert tips to guide you:
1. Engage with the RVO early
Reach out to RVO early for advice on project development and eligibility. This will help you understand key criteria, adjust your approach, and position your project effectively.
Applying for an Innovation Credit is a two-step process: before submitting an extensive full application package, companies submit an expression of interest (Quick Scan) to RVO, testing the eligibility of the project and the company. Use the Quick Scan to introduce your idea and gather feedback. Regular interaction ensures a smoother workflow and demonstrates your commitment.
2. Secure co-financing
A non-negotiable requirement for acquiring an Innovation Credit is to be able to provide co-financing. RVO only supports companies that have their co-financing (55% of the project cots) covered. Securing co-financing shows financial stability and commitment. Before applying, make sure that your co-investors are committed or that you have other clear means to co-finance the project (i.e. signed commercial contracts detailing expected revenues). Written agreements, such a term sheet, signal financial certainty to evaluators.
3. Develop a strong Go-2-market plan & commercialization strategy
As the Innovation Credit is a loan that requires repayment, a strong commercialization strategy is essential. Convince evaluators you can bring your product to market, generate revenue, and repay the loan. Demonstrate your in-depth understanding of the target market, competitive landscape, and value proposition. For projects with a long time-to-market such as therapeutics, consider an exit strategy with milestone payments or royalties. In these cases, early collaborations with potential exit partners can reassure evaluators of repayment capability.
4. Conduct a comprehensive risk analysis
Innovation Credit is intended to fund high-risk projects. Nevertheless, a structured risk management plan is crucial. Evaluators need to see that you understand potential risks and have plans to address them. Use methodologies like Failure Mode and Effects Analysis (FMEA) to identify and mitigate risks. Addressing high-priority risks early shows proactivity, which in turn builds confidence in your project’s feasibility. Remember that projects should only be risky at a technical level and ensure there will be no additional risks, such as financial or regulatory issues.
5. Establish a clear reporting structure
Once the Innovation Credit is granted, you will need to report regularly to RVO on the project’s progress and receive the upcoming funding tranche. Establish a reporting structure aligned with project milestones to ensure continuous funding. Regular progress reports help maintain transparency and keep RVO informed. Set up consistent reporting intervals — e.g. every three, six, or nine months — depending on the project and envisioned milestones. Use SMART milestones (Specific, Measurable, Achievable, Relevant, Time-bound) to track progress and show accountability. Timely reporting reassures evaluators that the project is on track.
In short, navigating the Innovation Credit application process can be challenging but is highly achievable with the right strategy. The full process, which begins with a 2-page Quick Scan, followed by a detailed proposal including a business plan, project plan, and financial annex, takes four to six months to complete. Engaging early with the RVO, securing co-financing, developing a commercialization strategy, managing risks, and establishing clear reporting are crucial for success.
Do you need support or advice? Or are you specifically looking for help with raising your co-financing? Read more about our Venture Finance Support or contact us . We are happy to help you!
