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Investment readiness of new products and services in the blue economy

Published on: Wed, 03/10/2018 - 10:24
Table of Contents
    criteria developed under a market study for the blue economy

    Eligibility and quality criteria used to evaluate project pipeline by contractors under the framework of a market study for the blue economy. The wiality criteria were used to aassess companies or pfrojects passing all the eligibility cruiteria 

    Eligibility Criteria

     

     

    Criteria

    Explanation

    Decomposition

    Notes

    Measure to be Applied

    Assessment

    1

    Fit with Blue Growth targets

    The potential of achieving Blue Growth targets with a focus on sustainability;

    Blue Growth targets: 1) Reduction of carbon emissions, 2) increase of [sustainable / ecological] marine food production and other marine bioeconomy products, 3) efficient use of resources and waste reduction, 4) circular economy models, 5) use of renewable [energy] resources or 6) the sustainable use of natural and cultural heritage

    Sub 1) active reduction, not just passive 'avoid' ('vegetarians have lower carbon footprint''); sub 2) 'sustainable' added - wasn't in the TechProposal; sub 3) same as 1); sub 4) shipbuilding and maintenance; offshore industry;  sub 5) use = assembly and mainenance of renewable power equipment; electricity generation and transport; sub 6) ecotourism  only'

    Contributes to at least 1 Blue Growth target (Y/N)

    (Y/N)

    2

    Fit with Blue Growth targets

    The potential of achieving Blue Growth targets with a focus on sustainability;

    Sustainability objectives of the company / project.

    Contribute to an improved aquatic environment, as relevant for the specific sector. Positive social Impact as defined by the IFC. (Y/N)?

    Does the project / company have a positive environmental / social impact? (Y/N)

    (Y/N)

    3

    Sector fit

    Projects resp. project proposers with a focus on investment in Blue Growth sectors and industries;

    Is there a sector fit?

    See sector-list

    Is the project / company active in one of the sectors listed in Classification? (Y/N)

    (Y/N)

    4

    Job creation and sustainability

    Projects resp. project proposers with the potential to create jobs and create sustainable business opportunities;

    Jobs created and potential for job creation

    -

    Will jobs be created? (Y/N)

    (Y/N)

    5

    Job creation and sustainability

    Projects resp. project proposers with the potential to create jobs and create sustainable business opportunities;

    Non-financial impact of the project or business

    -

    Does the project / company have the potential to be financially sustainable? (Y/N)

    (Y/N)

    6

    Financial viability

     Projects resp. project proposers with the potential of interest to various financial investors;

    Financial robustness of project or company

    Financial investors would require growth resulting in (more) profitability

    Does the project / company have the potential to grow profitably? (Y/N)

    (Y/N)

    7

    Stage of Company or Project

    Revenue generating company.

    Company should be revenue generating

    Existing companies with innovations  (products, services) that are not a non-recourse project.

    Is the company that implements the innvoation generating revenues, or expected to cross that point soon? (Y/N)

    (Y/N)

    Revenue generating project;

    Project should be revenue generating

    Existing innovative projects that are structured as a non-recourse project.

    Does the project have a revenue generating structure (i.e. financial model) subject to construction finance? No refinancing of operational projects. (Y/N)

    (Y/N)

    8

    Geographical fit

    Is this a European project / company

    Company needs to be based in EU, then implentation can be anywhere

    European Based, or predominantly operating in Europe, or serving the European Market

    Is the company in question domiciled in and EU / EFTA country? (Y/N)

    (Y/N)

               

    ALL YES => ELIGIBLE

     

    quality criteria

     

    Criteria

    Break-down / elements

    weighting

    comment

    1

    Commercial Viability

    1) Expected profitability and impact (How likely is a profit and delivery of impact goals?  2) identification and calculation of the project risks. 3) Planned sales; 4) Competitive position, USP

    4

    Inclusion only makes sense if commercially viable.

    2

    Technical Viability

    1) Quality of product / service (How well defined? Design? Overall robustness, IP?)

    4

    Inclusion only makes sense if technically viable.

    3

    Management Assessment

    1) Strength of management team; 2)  Quality of future plans (How convincing is the business plan generally?)

    2

    Crucial, but may change / can be fixed

    4

    Financial Viability

    1) Financial forecast, incl. profit and cash flow; 2) Amount of investment made to date (How much money has already been raised?) 3) Project proximity to commercialisation, 4) realisation risks and financial consequences;

    2

    Maybe too early and can be engineered / improved  / discussed

    5

    Project Maturity

    1) Achievements to date 2) Customers signed up (How many? How big/reliable?), 4) Results of feasibility study, 5) project financing availability 6) Technological readiness level (between TRL5 and 9 only; higher is better?
     7) Checks and permits (CBA, EIA, AML, KYC)

    1

    Only TRL 5-9 qualify. Any 5-9 will do, as just points to specific finance product for its maturity: seed - VC - working capital, growth capital, …..)

    6

    Strategic Fit with BLUE

    1) Project relevance to the Blue Growth strategy with a focus on sustainable development; 2) Innovativeness with information about planned innovations and readiness of their implementation; 3) include ESG/Impact objectives of the project or company; 4) is the size / growth rate of addressable market relevant in the BLUE-context?

    3

    If no Strategic Fit after all, low justification of including in our '35'

    7

    Added Value to BLUE

    Will the company / project benefit from a new BLUE-investment platform?

    3

    If not related to an investment platform, hard to justify our time.

    8

    Is this a company we would want to explore further as part of our pipeline?

     

    Y/N