Funding plays a crucial role in the success of any project or venture, be it a business startup, a nonprofit initiative, or a research endeavor. It’s the fuel that empowers dreamers, visionaries, and pioneers to transform their ideas into reality. While traditional funding methods like grants, loans, and investments are well-known, there’s a relatively new approach gaining momentum in various sectors: Cascade Funding.
In this blog post, we’ll delve into the concept of cascade funding. Our goal is to provide you with a deep understanding of cascade funding by breaking it down into three fundamental elements, offering valuable insights into its profound significance and untapped potential.
According to the European Commission official information, Cascade funding, also known as Financial Support for Third Parties (FSTP), is a Commission mechanism to distribute public funding in order to assist beneficiaries, such as start-ups, scale-ups, SME and/or mid-caps, in the uptake or development of digital innovation.
This innovative funding approach seeks to streamline administrative processes, fostering a simplified and SME-friendly application structure. It empowers select EU-funded projects to initiate open calls for additional funding, drawing inspiration from the successful model employed in the Erasmus student program.
The European Commission first introduced this pioneering scheme within Horizon 2020, the Framework Programme for Research and Innovation (2014-2020). At its core, cascade funding involves a domino effect where funding flows from one EC funded project to another, creating a continuous, interconnected flow of support. This dynamic chain reaction doesn’t just move financial resources; it propels knowledge, expertise, and resources from one project to another, nurturing an ecosystem where collaboration thrives and innovation flourishes.
Thus, Cascade funding is a novel funding model designed to support innovation and research activities across Europe.
With a clear understanding of what cascade funding entails, it’s time to explore the mechanics that make this funding model tick. Delving into ‘How does it work?’ provides the practical insights you need to know the operational framework of cascade funding, unraveling the stages and mechanisms that drive its success:
In essence, cascade funding encourages a ripple effect of innovation, where collaboration and the efficient use of resources play pivotal roles in propelling multiple projects toward success. This method of financing fosters an ecosystem and network where progress is not confined to the individual but thrives through collective efforts, transforming ideas into impactful outcomes.
Cascade funding offers several advantages that make it an attractive option for funding innovative projects:
Cascade funding represents a promising shift in the way innovation and research projects are funded. By fostering collaboration, resource sharing, and a dynamic ecosystem, cascade funding not only accelerates progress but also promotes resilience and sustainability. To harness its benefits, individuals and organizations must actively engage in this exciting model, embracing the interconnected nature of innovation in today’s world. So, keep an eye out for cascade funding opportunities, and get ready to be part of a transformative network of innovation.