Proof of Market

Proof of Market projects help businesses test the commercial potential of innovative ideas for new product, process or services through market research, market testing and competitor analysis, where the projects face future technical risk or scientific uncertainty.

Projects may include: identification of target markets; market size; future direction of market; barriers to entry; related market research and testing of USP; competitor analysis; price points; potential market share; identification of any technical barriers; exploration of IP protection routes; and, IP protection.

Projects last up to 9 months. The output will be a thorough and professional analysis of the scale of the market opportunity.

The grant rate is 60% and the maximum level of support is £20,000. The minimum grant that can be given under this element cannot fall below £5,000. Claims will be paid in arrears of expenditure on a quarterly basis at a rate of 60%. The NWDA will retain 15% of the grant, until the Project Officer confirms that the grant recipient has completed the project satisfactorily.


Eligibility

Proof of Market Projects are open to individuals intending to start a business or businesses already operating in England that meet the independence conditions with fewer than 250 full-time staff (or the equivalent) and either:

  • an annual turnover not exceeding €50m; or
  • a balance sheet total (total assets net of depreciation) not exceeding €43m.

Applicants must also be eligible under European Regional Development funding guidelines as well as those for the Grant for Research and Development scheme itself. The following business activities are ineligible under European Funding Rules:

  • Those covered by EC sectoral restrictions: These include the production of synthetic fibres, textiles and clothing, shipbuilding, coal and steel, agriculture and Annex 1 food processing.
  • Banks and insurance companies.
  • Establishments providing generalised (school age) education.
  • Provision of local social welfare facilities eg hospitals, nursing homes, fire stations, day nurseries, child-minding facilities, sports facilities, parks, public libraries.
  • Retail facilities.
  • Coastal protection, soil conservation and infrastructures; all with an exclusively agricultural bias, reafforestation and prevention of forest fires, insofar as such infrastructures can be financed under EAFRD.
  • That proportion of public expenditure incurred in land acquisition not directly linked to productive investment or investment in infrastructure.
  • Building and renovation of housing or major infrastructure in ports.