Marco Principe, Author at Aiternalex

About Marco Principe

I graduated in Sports Management with a thesis in Sports Law on the arbitration commissions of the International Sports Federations in the resolution of disputes in the sport employment relationship. Go to Profile

Entries by Marco Principe

Public Funding: June 2024 opportunities for Startups!

06/06/2024/in Public Funding/by Marco Principe

We continue with the second appointment of this new monthly column, in which the Public Funding Department of Aiternalex intends to provide a series of subsidised and non-repayable finance instruments reserved for start-ups and aspiring entrepreneurs.

In particular, we will firstly highlight measures that are close to expiry and for which it is still possible to apply at least one month from now.

Secondly, we will find measures without a deadline, but with a deadline when funds run out.

Non-repayable financing to support the development of innovative start-ups – Emilia-Romagna Region

Activated on 25 June, and expiring on 11 September, the grant provides for a non-repayable contribution of a maximum amount of EUR 150,000, equal to 40% of eligible expenditure.

Eligible companies are micro and small enterprises registered in the special section of the Company Register dedicated to innovative start-ups at the competent Chambers of Commerce in the Emilia-Romagna Region.

Call for proposals Smart&Start VDA: non-repayable financing for the growth of new innovative start-ups that make productive use of research results – Valle d’Aosta Region

Expiring on 30 September, the grant provides for a non-repayable contribution of up to EUR 150,000, equal to 60% of the expenses for implementing the development plan.

Innovative start-ups and freelancers can benefit from it ‘as they are equated to SMEs as economic activity, and expressly identified as recipients of European funds’.

Call for proposals ‘Creation of new enterprises’: non-repayable financing for the development of self-entrepreneurship – Province of Cosenza

Expiring on 31 October, the facility provides for a non-repayable contribution of up to Euro 10,000, equal to 50% of the amount of the cost estimates, increased to 60% in the case of differently-abled members or in the case of women’s businesses.

All aspiring entrepreneurs may benefit.

Calls for proposals expiring when funds are exhausted

Bando Nuova Impresa 2024: Non-repayable financing for the start-up of new enterprises – Lombardy Region

Expiring while funds last, the grant provides for a maximum non-repayable contribution of EUR 10,000, with a minimum investment of EUR 3,000, and a maximum coverage of 50% of the project.

Micro, small and medium-sized enterprises set up in Lombardy after 1 June 2023 and self-employed persons with individual VAT numbers are eligible.

Bando Pre-Seed Plus: Non-repayable financing for the creation of innovative start-ups – Regione Lazio

Expiring when funds are exhausted, the grant provides for a minimum non-repayable contribution of EUR 10,000 and a maximum of EUR 30,000, increasable to EUR 60,000/100,000 if respectively more capital is contributed by third-party investors and research spin-offs.

Innovative start-ups set up no more than 24 months ago and with operational headquarters in Lazio, as well as aspiring entrepreneurs, are eligible.

For information on all types of eligible interventions of the above-mentioned measures, and for assistance in compiling and submitting applications, please contact us!

Public Funding: May 2024 opportunities for Startups!

09/05/2024/in Public Funding/by Marco Principe

In this new monthly column, the Public Funding Department of Aiternalex intends to provide a series of subsidised and non-repayable finance instruments reserved for start-ups and aspiring entrepreneurs.

In particular, we will firstly highlight measures that are close to expiry and for which it is still possible to apply at least one month from now.

Secondly, we will find measures without a deadline, but with a deadline when funds run out.

Non-repayable financing for measures to support entrepreneurship – Friuli Venezia Giulia Region

Expiring on 28 June 2024, the measure provides for a non-repayable grant in the maximum amount of Euro 70,000 for projects implemented in 4 months, and Euro 60,000 for projects implemented in 12 months. In the first case, coverage is 70% of the project, in the second 60%.

New small and medium-sized enterprises established no more than 36 months ago and all aspiring entrepreneurs are eligible.

Bando Donne Innovazione e Impresa: Non-repayable financing in support of innovation in female entrepreneurship – Lazio Region

Expiring on 12 June 2024, the grant provides for a non-repayable contribution of a maximum amount of EUR 145,000, with coverage ranging from 40 to 60% of the project.

Eligible beneficiaries are small and medium-sized enterprises run by women, i.e. corporations whose shares are owned by at least two-thirds by women.

Bando Nuova Impresa: Non-repayable financing to support new entrepreneurship – Autonomous Province of Trento

Expiring on 5 June 2024, the grant provides for a minimum non-repayable contribution of Euro 10,000 and a maximum of Euro 100,000.

Eligible beneficiaries are newly established micro and small enterprises with an operating unit in Trento, newly established female entrepreneurs, young people under 35 or those who have been unemployed for at least 6 months.

Calls with deadline until funds are depleted

Bando Nuova Impresa 2024: Non-repayable financing for business start-ups – Lombardy Region

Expiring when funds run out, the grant provides for a maximum non-repayable contribution of Euro 10,000, with a minimum investment of Euro 3,000, and a maximum coverage of 50% of the project.

Micro, small and medium-sized enterprises set up in Lombardy after 1 June 2023 and self-employed persons with individual VAT numbers are eligible.

Bando Pre-Seed Plus: Non-repayable financing for the creation of innovative start-ups – Regione Lazio

Innovative start-ups established no more than 24 months ago and with operational headquarters in Lazio, as well as aspiring entrepreneurs, are eligible.

For information on all types of eligible interventions of the above-mentioned measures, and for assistance in compiling and submitting applications, please contact us!

Incentives for startups in southern Italy

14/03/2024/in Public Funding/by Marco Principe

In the last article, we talked about subsidised finance opportunities for innovative start-ups, opening a focus on Invitalia’s Smart&Start – link

In the same article, we provided a definition of subsidised finance, which we invite you to read for the continuation of today’s article.

Resto al Sud

The biggest incentive for supporting the start-up and growth of new businesses in the Mezzogiorno is Resto al Sud, a one-stop instrument managed by Invitalia.

The facilities are aimed at all under 56s resident in southern Italy, in the municipalities of the earthquake crater area in central Italy and in the minor, lagoon and lake islands in central and northern Italy. Those who transfer their residence within 60 days of the positive outcome of the preliminary investigation are also eligible for the benefits.

Moreover, to be eligible, one must not be the owner of other business activities, must not have benefited from other facilities for self-entrepreneurship in the last three years, must not have a permanent job, and must undertake not to have one for the entire duration of the financing.

What can be financed? And what are the facilities?

Eligible for financing are industrial production activities, handicrafts, processing of agricultural products, fishing and aquaculture, provision of services to businesses and individuals, tourism, commerce, and freelance activities. Agricultural activities are excluded.

Coverage is up to 100 per cent of expenses, with a maximum financing of EUR 50,000 per applicant, and a maximum of EUR 200,000 for companies with at least four partners.

For sole proprietorships, the maximum financing is EUR 60,000.

Companies with partners who do not meet the residency requirement may also qualify for the financing, provided that more than half of the company structure meets it.

Importantly, it is not required that the registered office of the company be in the Mezzogiorno or in one of the above-mentioned areas.

The subsidies are composed of 50% soft loan and 50% non-repayable fund.

What are the eligible expenses?

Eligible expenses are those for the renovation or maintenance of real estate up to a maximum of 30% of total expenditure, the purchase of machinery, plant and new equipment, computer programmes and services for technology, information and telecommunications, and management expenses up to a maximum of 20% of total expenditure.

I want to apply, how do I proceed?

The application is one of the most complex, and it is strongly recommended that it be handled with the support of a consultant.

On the other hand, as it is a one-stop procedure, there are no set deadlines to meet, and a possible rejection of the application does not exclude the possibility of resubmitting it after a project review.

PUBLIC FUNDING OPPORTUNITIES FOR INNOVATIVE START-UPS

15/02/2024/in Strategic Management/by Marco Principe

– What is an innovative startup?

Paragraph 2 of Article 25 of Decree Law 179/2012 lists a number of requirements to be met in order to qualify as an innovative startup.

Without going into too much detail on each individual requirement, for which please refer directly to the above-mentioned legislation, first and foremost an innovative startup is a joint-stock company, also established in cooperative form; it must also meet the following objective requirements be a new company or one that has been established for no more than five years; reside in Italy, or in another country of the European Economic Area but with a production site or branch in Italy; have an annual turnover of less than €5 million; not be listed on any regulated market or multilateral trading platform; not distribute and have not distributed profits; have as its exclusive or prevalent corporate purpose the development, production and marketing of a product or service with high technological value; not be the result of a merger, demerger or sale of a business unit.

In addition, it must meet at least one of the following three subjective requirements: it must incur R&D expenses equal to at least 15 per cent of the higher of cost and total production value; employ highly qualified personnel in the form of PhDs, PhD students or researchers for at least one third of the total personnel, or in the form of PhDs with a master’s degree for at least two thirds; and be the owner, depositary or licensee of at least one patent, or the owner of software registered with the SIAE.

With the so-called ‘Decreto Rilancio’, measures were introduced to strengthen and support the innovative start-up ecosystem, and among the various dedicated facilities, here we will take a closer look at subsidised finance.

To learn more about all the other measures:

Innovative Startup Incentives

– What are public fundigs?

Public fundinge represents a specialised branch of corporate finance, the main objective of which is to facilitate companies’ access to advantageous sources of finance compared to standard market conditions. This sector is characterised by the availability of public financial instruments, made available by the competent authorities at EU, national and regional level, with the aim of supporting economic development on the territory and enhancing the competitiveness of enterprises. These facilities aim to foster the growth and solidity of the economic system as a whole, as well as to strengthen the local business fabric, promoting the creation of new business opportunities and innovation. Thanks to these instruments, companies can benefit from more advantageous financial conditions, such as non-reimbursable tenders, subsidised interest rates, extended repayment periods and public guarantees, which enable them to access capital needed for investments and strategic projects. In this way, subsidised finance acts as a catalyst for sustainable economic development and long-term value creation, contributing to the well-being of communities and the growth of the entire economy.

– Smart&Start Italy

Putting the dots together, the most important national subsidised finance programme dedicated to the birth and growth of innovative start-ups is Smart&Start Italia, a one-stop instrument managed by Invitalia.

Teams of individuals intending to set up an innovative start-up in Italy can also apply.

Without going into detail on the items of expenditure that can be financed, Smart&Start provides an interest-free loan for business plans ranging from a minimum of EUR 100,000 to a maximum of EUR 1.5 million, to purchase capital goods, services, personnel expenses and business operating costs. The funding covers 80 to 90 per cent of eligible expenses.

To receive funding, the business project must have one of the following characteristics

– be characterised by significant technological and innovative content;

– be aimed at developing products, services or solutions in the field of digital entrepreneurship, AI, blockchain and IoT;

– be aimed at the economic exploitation of the results of the system and of public and private research.

It is important to emphasise that by taking advantage of this instrument, the start-up does not sell equity to public entities, and should equity be sold to a private investor, the start-up would have the option of converting part of the debt into non-repayable equity, up to a maximum of 50 per cent of the investment!

In addition, for the Mezzogiorno, there is a non-repayable portion of 30% of the funding, which means only having to repay 70% of the loan received!

I want to apply, how do I proceed?

Applying for subsidies is one of the most complex, and it is strongly recommended that you take care of it with the support of a consultant.

Even once the financing has been obtained, the support of an advisor is decisive in the search for private investors, who, as mentioned in the previous paragraph, would make it possible to convert a substantial part of the debt into grants.

THE MOST COMMON MISTAKES IN START-UPS

03/01/2024/in Strategic Management/by Marco Principe

There is one big common cause of failure for most start-ups: not creating something that consumers need.

If you are focusing on making something that users need, it doesn’t automatically mean that you will succeed, but you will at least avoid failure for the same reason that most startups fail.

On the other hand, if you are not focusing on realising something that users need, it means that you will almost certainly fail.

At the end of the day, it is a matter of using probabilities in your favour: if I know the first major cause of failure and try to avoid it, then I will be statistically more likely to succeed.

Moreover, it seems easier to follow a list of things not to do, rather than things to do.

Having reached this point, let’s go a step further and explore the question: why do startuppers end up turning their focus away from the end consumer?

Focusing on the possible profit rather than on the needs of the user

Emphasizing the importance of prioritizing the market’s needs doesn’t diminish the significance of profit or a sound business model. Rather, it underscores the inherent difficulty in fulfilling consumer needs compared to achieving financial gains. Neglecting the consideration of a business model is deemed irresponsible, but it is even more imprudent not to commence by addressing the fundamental requirements of the market.

“The companies that win are the ones that put users first. Google, for example. They made search work, then worried about how to make money from it”. – Paul Graham

Targeting a market niche in order to avoid competition

Unless it pertains to a ‘blue ocean’ market, as elaborated in subsequent articles, the creation of something valuable inherently involves confronting market competition, be it from direct competitors or alternative products/services. Evading competition becomes possible only by forgoing the cultivation of innovative ideas, and sidestepping success is the sole strategy to avert possessing a noteworthy concept.

Not having a specific consumer in mind

Generating a product that resonates with consumers necessitates a thorough understanding of their preferences. Many prosperous startups initiated their journeys by addressing challenges personally experienced by their founders. This approach is advantageous as it allows for capitalizing on a familiar necessity, and one is most familiar with their own needs. For instance, Apple emerged from Steve Wozniak’s desire for a personal computer, Google arose due to the founders’ struggle to find online information, and Hotmail originated from the founders’ inability to exchange emails at work. While it’s feasible to create a product for a consumer demographic distinct from oneself, it remains essential to cultivate a deep understanding of their preferences.

Have one founder

Have you ever observed the scarcity of thriving start-ups initiated by a single individual? Even in cases where a prominent figure appears to be the sole founder, it’s often the case that there are actually multiple contributors. However, what are the drawbacks associated with having a sole founder? It suggests that the individual may have struggled to persuade friends or acquaintances to share the business risks, or they may have believed they could handle it independently. Even if these friends or acquaintances underestimated the potential success of the start-up, the sole founder would still face significant disadvantages. While it may seem trivial, having colleagues for comparison and collaborative brainstorming is crucial, along with having someone to provide support during moments of low motivation. Making decisions alone increases the likelihood of poor choices.

These factors contribute to the challenges that start-ups encounter, causing them to deviate from focusing on what truly matters in the business realm: creating something people genuinely want.

What have we learned from the FTX case?

25/10/2023/in Investment analysis/by Marco Principe

On 6 November 2022, CZ, the CEO of Binance, declared in a tweet that he wanted to liquidate all of his FTT (FTX Token), following the news that a large part of FTX’s reserves were stored in the form of the exchange’s own native token.
Without going into detail as to why this would constitute a serious risk of insolvency, on 11 November, after days of users trying in vain to withdraw their funds, bankruptcy was officially declared. When this happens, a bankruptcy receiver is appointed, who is in charge of settling the company’s debts by liquidating its assets in order to distribute the company‘s remaining assets among its creditors.
But let us take a step back. Why was there no intervention by a European body to protect European users?

THE CASE
A few months before the crash, FTX had opened a European subsidiary (FTX EU) to which all European users should have intuitively belonged. Despite having been notified by email of the move to FTX EU, all users registered with FTX prior to the creation of the subsidiary were then found to have remained FTX International customers, and thus could not receive protection from the EU supervisory authorities under the MiFID directive.
In this specific case, FTX EU was accredited with CySEC, the Cyprus supervisory authority; therefore, as Consob states, “on the basis of the European Union rules on investment services, it is CySEC (and not Consob) which is the competent authority to supervise the aforementioned FTX EU Ltd, also for the activity carried out in Italy (it being notified by the Cypriot authority to operate in our country exclusively under the freedom to provide services mode)”.
Notwithstanding the fact that, within the framework of the bankruptcy procedure (Chapter 11 of the U.S. Bancrupcty Code), FTX EU has started the process of restitution of funds to the clients (as of today still pending), in the event of a negative outcome, any claims would subsequently be taken care of by the Cypriot Financial Ombudsman, who would have the task of compensating the clients for the missing funds, up to a maximum limit of Euro 20,000 for retail clients for the financial instruments provided for by MiFID II.

As for the clients who remained under the wing of FTX International, the latter has also started the same process of restitution of funds as above, with the big difference that, whatever the final outcome, there would be no protection from the European Union.

CONSIDERATIONS
When trading in financial markets, including cryptocurrencies, one of the first things to consider is to assess the reliability and security of the intermediary.
The safest and most efficient way to do this is to check its presence on the list of entities authorised by Consob, or in any case, as mentioned in the previous paragraph, among those authorised by the competent authorities of the countries adhering to the European Union’s rules on investment services.
Although FTX was one of the best-known cryptocurrency exchanges in the world, it was not among the aforementioned entities, at least until the establishment of FTX EU at CySEC, that could not guarantee a sufficient level of protection for the platform’s users.
It follows that media standing and reputation should not be factors to be taken into account when choosing an intermediary to whom one’s funds should be managed.