Department of State Grants & International Funds - Relationships, Experience and Knowledge
A high-tech company is faced with a variety of financing options that are not capital raising. Among other things, the Innovation Authority’s grants and EU programs in which we specialize.
The Benefits of Grants Fundraising
The grant funds allow young companies to raise capital in the early stages of the company's life, while business risk and development risk are particularly high, sometimes at a level that does not allow for raising capital from investors. If investors are willing to finance a young company at a high level of risk, they will require a high return, i.e an investment in a low company value, which results in a significant dilution. Financing through the funds of the Innovation Authority and foreign financing funds does not create dilution. In some cases there is no refund at all and in others the refund is a function of revenue arising from the sale of the product developed through the grant funds and is limited to the amount of the grant. Another significant advantage is that receiving a grant gives the company a stamp of technological and business capability - something that is an attraction for investors. Some types of grants also have tax benefits.
The Requirements
The company is required to demonstrate technological innovation, commercial feasibility and the ability to raise the required supplementary funding beyond the grant funds. On the accounting side, the company is required to maintain a separate system of accounts for the expenses for which the grant money is received, submit periodic reports and final reports audited by accountants and manage an attendance system by projects. Projects, calculation of royalties, submission of periodic reports and payment of royalties.
The Challenges in Accounting Management of Projects Eligible For Grants
Building a business plan and a detailed budget as part of the grant application and building an accounting system that complies with the funder’s complex reporting requirements – monitoring employee attendance by division into projects, preparing periodic reports and meeting the grant giver’s audits. All this within the limited resources of a young high-tech company.
The Solution
The Top Finance team has many years of experience in accompanying high-tech companies in all stages of submitting applications, ongoing reporting and auditing grants and royalties. We will accompany you during the the planning and building phase and assist in building the business plan and budget in a way that will improve the chances of success of the application. As soon as the plan is approved, we will devise the necessary accounting and work procedures and later we will prepare the periodic and final reports. All of this with close supervision and precise adjustment to the specific needs of your company.
- Assistance in building the financial part of the grant application
- Planning the accounting structure required for reporting
- Build collaborative work procedures to enable accurate and efficient reporting
- Preparation of periodic reports
- Preparation of final reports
- Close assistance during external audit
- Preparation of royalty reports when needed
We believe in our client and client collaboration