Cascading Grants

Cascading grants are a European Commission mechanism to distribute public funding in order to assist beneficiaries, such as start-ups, scale-ups, SME and/or mid-caps, in the uptake or development of digital innovation.

Cascade Funding, also known as Financial Support for Third Parties (FSTP), is a European Commission mechanism to distribute public funding in order to assist beneficiaries, such as start-ups, scale-ups, SME and/or mid-caps, in the uptake or development of digital innovation.

This funding method aims at simplifying the administrative procedures, creating a light, SME-friendly application scheme, by allowing that some EU-funded projects may issue, in turn, open calls for further funding.

This scheme is based on the model of Erasmus students and was first introduced by the European Commission in Horizon 2020, the Framework Programme for Research and Innovation (2014-2020). Third parties receiving cascade funding under Horizon 2020 have a contract with the consortium of the EU-funded project of which they become a third party. This means that this consortium is liable towards the European Commission for the third parties to which it provide financial support and, hence, no legal and financial validation is necessary for these third parties, which makes quicker/easier for projects to have open calls in their projects.

These open calls from EU-funded projects are usually competitive, and aim at: selecting tech start-ups or scale-ups for acceleration or incubation purposes (usually equity free), supporting pilots, demonstrations and/or experiments on a specific innovative technology or framework (usually with the participation of start-ups or SME), or integrating more participants to the project to extend its scope or to address specific tasks. Support offered by these open calls, usually consist in funding (typically in the range of €50,000 to €150,000) but it may also be vouchers for support services or free access and support to use testing facilities.

 

To see opportunities in cascading grants please visit the Commission website - http://ec.europa.eu/research/participants/portal/desktop/en/opportunities/other/competitive.html

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