Financial Support for Security Research

Last year the European Union recognized the need and importance of helping innovators in the security sector, by announcing that as part of its EU Framework 7, €1.4 billion would be set aside to fund security research. The specific areas of technology solutions to be highlighted include civil protection, bio-security, protection against crime and terrorism.

Goal to Encourage Security Entrepreneurs
Also, under the EU's current Competitiveness and Innovation Framework Programme (CIP) that runs until 2013, the need to support innovations AFTER they leave the research lab and enter the start-up phase was rightly recognized. "With regard to technological innovation, SMEs should be encouraged to become involved in high-technology sectors such as space and security" (full programme online here) Unfortunately it is not clear how exactly the EU (in particular the Commission) plans to assist SMEs in the security sector.


General EU/EC Support for SMEs
On the positive side though, the European Commission's Directorate General for Enterprise and Industry has already done a lot of work to support entrepreneurs in general - sector independent. In addition to creating an online portal with information for entrepreneurs (click here for the SME Portal at EC), it created a specific investment fund and offers grants and advice. The current CIP allocated a budget of over one billion Euros for SMEs, "...which should leverage around 30 billion euros of new finance for SMEs." (more info on CIP)

Analysis of Existing Programs and Gaps
So, there are many effective EU-supported programs that help entrepreneurs. However when you look at an analysis we conducted last year (see chart below), it becomes apparent that there is a gap in support for pre-VC entrepreneurs in the security sector. Security innovators operate in a market that has its own specific barriers and they need access to sector specific advice and financial support.