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2H. Establish a Blue Growth bridging fund One of the main challenges that Blue Biotechnology SMEs experience is to move from the discovery and R&D stages of the value chain into the product development stage. Investors often require additional evidence that the product is feasible to even be developed (Patent approval, clinical trials, prototype etc.) before committing finances. At this stage short term financing is often missing to allow the company to progress. Expected results The bridging fund aims to address this gap between research financing (e.g. Horizon 2020) and mid to long term product financing (e.g. EIB, Venture Capital, private investments). The difference to other financial products on offer will be its:  Duration – it should be flexible depending on the specific project and the time required for the proceeding;  Adaptability – the needs of the companies to sometimes prepare the product can at times be also related to simple cash-flow issues and therefore restrictions on the use of the financing should be adaptable to the immediate needs of the company. Given that we estimate that there are between 80-130 companies focused on Blue Biotechnology and that the average amount needed would most likely range between EUR 40,000 to EUR 250,000113 we propose a fund between EUR 8 million and EUR 32.5 million. It would most likely be administered under a current framework such as the guarantee scheme of the EIB. Specific impacts The bridging finances will allow the SME to present a much more complete and clear vision of its product as well as its IPR protected. This will have two main specific impacts:  Stimulate investment – this is largely due to the fact that the products will be a lot less risky, since many of the commercial risks have been addressed by the activities facilitated by this bridging financing. Given that risk is one of the main factors in investment decisions and given that high risk perception is one of the main reasons for not investing into new sectors, this will encourage investments.  Higher company return – due to the fact that the development of the product has been progressed and that the risks have been decreased the company can demand a higher return if selling their product, or give up less equity in return for investments. Therefore benefitting financially from their activity. Wider impacts The ability to complete the process of product development would encourage entrepreneurship as it more likely that the right investors/buyers would be found to fully develop the product. Furthermore, additional activities or risks would be financially rewarding. 2K. Develop guidelines for the implementation of the Nagoya Protocol in maritime zones under coastal State jurisdiction Expected results The expected result of this measure would be an increased awareness and improved practical understanding of the legal requirements relating to access and benefit sharing in maritime zones under coastal State jurisdiction thereby encouraging bio-prospecting and cooperation with third countries. Costs of this activity are difficult to forecast as the development of guidelines (phrasing and contextualisation) could depend on the international and bilateral talks. However, it is assumed 113 This is the financing gap between micro-loans and larger loans 76 Study in support of Impact Assessment work on Blue Biotechnology

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