Terms and Conditions

Legal & General Healthy Ageing investment challenge

 

Purpose

IUK and L&G aim to support innovative companies with a UK presence, seeking to scale up and commercialise science and technology

Allocation Process

The funding provided by IUK is to be held by L&G as trustee.

L&G will recommend investees to IUK where they meet L&G investment criteria and they meet IUK criteria.

IUK and L&G shall consider the applicant shortlist and due diligence findings, independently of each other and shall undertake a preliminary assessment to consider whether: (a) it has an appetite to provide Equity Investment/Grant funding; and (b) the Project is likely to satisfy the stated criteria (see “Grant Eligibility” below).

Equity investment

L&G shall allocate the grant money alongside an investment round that is at least equal in value to the grant awarded. This funding round must comprise an equity investment from L&G to the value of at least 50% of the grant value.

L&G is seeking high growth potential investees with defensible intellectual property, excellent management teams and demonstrable commercial traction in the form of meaningful revenue.

Grant Eligibility

Applicants must be focused on commercialising UK science and technology whilst seeking to make a positive economic and social impact.

Applicants must satisfy certain criteria to be eligible to apply, namely:

·       The applicant must have an established presence in the UK.

·       The project must relate to either a “feasibility study” or “industrial research” but not “experimental development” as such terms are defined in Article 2(87), Article 2(85) and Article 2(86) respectively in Regulation (EU) No. 651/2014.

·       The applicant shall be an eligible SME pursuant to the qualifying criteria for State aid provided under Article 25 of the General Block Exemption.

·       The minimum amount of grant that can be applied for per project is £50,000. The minimum project size is £100,000. The maximum amount of grant awarded may be the lesser of £1.5 million or 50% of the project costs (where, in the case of a grant application for £1.5 million, the anticipated project costs shall be at least £3 million).

·       The project must be expected to last no longer than 2 years.

·       The project must address 1 of the 7 following themes:

1.         sustaining physical activity;

2.         maintaining health at work;

3.         designing for age-friendly homes;

4.         managing common complaints of ageing;

5.         living well with cognitive impairment;

6.         supporting social connections; and

7.         creating healthy and active places.

 

Guidance to EU definitions referred above in Grant Eligibility

The project must relate to either a “feasibility study” or “industrial research” but not “experimental development” as such terms are defined in Article 2(87), Article 2(85) and Article 2(86) respectively in Regulation (EU) No. 651/2014.

Feasibility study - the evaluation and analysis of the potential of a project, which aims at supporting the process of decision-making by objectively and rationally uncovering its strengths and weaknesses, opportunities and threats, as well as identifying the resources required to carry it through and ultimately its prospects for success.

Industrial research - the planned research or critical investigation aimed at the acquisition of new knowledge and skills for developing new products, processes or services or for bringing about a significant improvement in existing products, processes or services. It comprises the creation of components parts of complex systems, and may include the construction of prototypes in a laboratory environment or in an environment with simulated interfaces to existing systems as well as of pilot lines, when necessary for the industrial research and notably for generic technology validation.

Experimental development - acquiring, combining, shaping and using existing scientific, technological, business and other relevant knowledge and skills with the aim of developing new or improved products, processes or services. This may also include, for example, activities aiming at the conceptual definition, planning and documentation of new products, processes or services. Experimental development may comprise prototyping, demonstrating, piloting, testing and validation of new or improved products, processes or services in environments representative of real life operating conditions where the primary objective is to make further technical improvements on products, processes or services that are not substantially set. This may include the development of a commercially usable prototype or pilot which is necessarily the final commercial product and which is too expensive to produce for it to be used only for demonstration and validation purposes. Experimental development does not include routine or periodic changes made to existing products, production lines, manufacturing processes, services and other operations in progress, even if those changes may represent improvements.

 

The applicant shall be an eligible SME pursuant to the qualifying criteria for State aid provided under Article 25 of the General Block Exemption.

To qualify as an SME, an entity must be an enterprise. An enterprise is any entity engaged in an economic activity, irrespective of its legal form.

The enterprise must:

  • employ fewer than 250 persons; and
  • have either an annual turnover not exceeding EUR 50 million or an annual balance sheet total not exceeding EUR 43 million.

Additionally, the enterprise must consider whether it is:

  • an autonomous enterprise;
  • a partner enterprise; or
  • a linked

Enterprises that draw up consolidated accounts are usually linked enterprises.

An enterprise is autonomous if:

  • it is totally independent, i.e. it has no participation in other enterprises and no enterprise has a participation in it; or
  • it has a holding of less than 25 % of the capital or voting rights (whichever is higher) in one or more other enterprises; and/or
  • any external parties have a stake of no more than 25 % of the capital or voting rights (whichever is higher) in the enterprise; or
  • it is not linked to another enterprise through a natural person.

An enterprise may still be considered autonomous, and thus as not having any partner enterprises, even if the 25 % threshold is reached or exceeded by any of the following types of investors:

  • public investment corporations, venture capital companies and business angels;
  • universities and non-profit-making research centres;
  • institutional investors, including regional development funds;
  • autonomous local authorities with an annual budget of less than €10 million and fewer than 5,000 inhabitants.

One or more of the above investors may individually have a stake of up to 50 % in an enterprise

An enterprise is a partner enterprise if:

  • the enterprise has a holding equal to or greater than 25 % of the capital or voting rights in another enterprise and/or another enterprise has a holding equal to or greater than 25 % in the enterprise in question; and
  • the enterprise is not linked to another enterprise.

With respect to partner enterprises, the enterprise in question must add a proportion of its partner’s staff headcount and financial data to its own when determining its eligibility for SME status. This proportion will reflect the percentage of shares or voting rights — whichever is higher — that are held.

In addition, the proportionate data of any enterprise that is linked to any of an enterprise’s partners need to be taken into account. Data of a partner of a partner, however, are not to be considered.

An enterprise is not an SME if 25 % or more of its capital or voting rights are directly or indirectly owned or controlled, jointly or individually, by one or more public bodies.

Two or more enterprises are linked when they have any of the following relationships:

  • one enterprise holds a majority of the shareholders’ or members’ voting rights in another;
  • one enterprise is entitled to appoint or remove a majority of the administrative, management or supervisory body of another;
  • a contract between the enterprises, or a provision in the memorandum or articles of association of one of the enterprises, enables one to exercise a dominant influence over the other;
  • one enterprise is able, by agreement, to exercise sole control over a majority of shareholders’ or members’ voting rights in another. A typical example of a linked enterprise is the wholly owned subsidiary.

In case a relationship of this kind occurs through the ownership of one or more individuals (acting jointly), the enterprises involved are considered as linked if they operate on the same or adjacent markets.

With respect to linked enterprises, 100 % of the linked enterprise’s data must be added to those of the enterprise in question to determine if it meets the staff headcount and one of the financial thresholds of the Definition.