D4.2 Roadmap and recommendations for training and transfer activities to market

Roadmap and recommendations for training and transfer activities to market Page 2 D4. Roadmap and recommendations for training and transfer activities to market Document Information Project Name BlueMissionAA – Building a coordination hub to support the Mission implementation in the Atlantic and Arctic Basin Grant Number 101093962 Deliverable number 4.2 Deliverable title Roadmap and recommendations for training and transfer activities to market WP number WP4 Deliverable due date M12 Submission date 29/06/2024 Dissemination levels Public Lead beneficiary FRCT Author(s) Mariana Corá (FRCT), Laura Vetter (Fraunhofer) Contributors Internal reviewers Luz Paramio, Renato Pires, André Valente, Valerie de Liedekerke Document history and changes Version Date Author Description 0.1 17/06/2024 Mariana Corá First version 0,2 28/06/2024 Luz Paramio, Renato Pires, Laura Vetter André Valente, Valerie de Liedekerke Comments and edits 1.0 09/07/2024 Mariana Corá, Laura Vetter Consolidated version Page 3 D4. Roadmap and recommendations for training and transfer activities to market Authors | Mariana Corá, Laura Vetter. Publisher | NA How to cite | BlueMissionAA Roadmap and recommendations for training and transfer activities to market, FRCT 2024 Supported by/In partnership with Page 4 D4. Roadmap and recommendations for training and transfer activities to market Table of Contents Document Information ..................................................................................................................... 2 Document history and changes ..................................................................................................... 2 List of Figures ...................................................................................................................................... 5 List of Tables ....................................................................................................................................... 5 1. Summary ........................................................................................................................................ 6 2. Barriers to scale up ........................................................................................................................ 7 2.1. Environmental Barriers ........................................................................................................ 8 2.2. Technical Barriers ................................................................................................................ 9 2.3. Social Barriers ..................................................................................................................... 10 2.4. Economic Barriers .............................................................................................................. 10 2.5. Political Barriers .................................................................................................................. 11 3. Blue Restoration as Business ....................................................................................................... 13 3.1. Starting Point....................................................................................................................... 13 3.2. Hands-on ............................................................................................................................ 14 3.2.1. Step 1: Determine the business concept ................................................................... 15 3.2.2. Step 2: Market and competitor research and analysis ............................................ 16 3.2.3. Step 3: Refine your idea. .............................................................................................. 17 3.2.4. Step 4: Making the case: Business Plan ...................................................................... 19 3.2.5. Step 5: Business Legal Structure ................................................................................... 21 Legal & Regulatory Frameworks ............................................................................................... 22 3.2.6. Step 6: Funding and Investment .................................................................................. 24 Types of funds .............................................................................................................................. 25 Funding Possibilities at Various Stages of Business Development ......................................... 30 3.2.7. Step 7: Out on the Market ............................................................................................ 37 Pre-launch.................................................................................................................................... 37 After launch ................................................................................................................................. 37 3.2.8. Step 8: Effective communication and engagement ................................................ 39 Shifting Baselines ......................................................................................................................... 39 Engaging Stakeholders .............................................................................................................. 39 Citizen Engagement ................................................................................................................... 40 4. Final Reflections........................................................................................................................... 42 References ....................................................................................................................................... 43 Page 5 D4. Roadmap and recommendations for training and transfer activities to market List of Figures Figure 1. Different ways to improve biodiversity and enhance ecosystem services. ................. 14 Figure 2. Stages of developing a business idea. ............................................................................. 17 Figure 3. Defining a problem framework, based on Nesta and The Rockefeller Foundation (2014). ................................................................................................................................................... 18 Figure 4. Business plan structure and key features. ........................................................................ 21 List of Tables Table 1. Environmental barriers and practical solutions, according to Stewart-Sinclair et al. (2020). ..................................................................................................................................................... 8 Table 2. Technical barriers and practical solutions, according to Stewart-Sinclair et al. (2020). 9 Table 3. Social barriers and practical solutions, according to Stewart-Sinclair et al. (2020). .... 10 Table 4. Economic barriers and practical solutions, according to Stewart-Sinclair et al. (2020). .............................................................................................................................................................. 10 Table 5. Political barriers and practical solutions, according to Stewart-Sinclair et al. (2020). . 11 Table 6. Some good sources to search for legal structures. .......................................................... 22 Table 7. Governmental business activities in ocean restoration. .................................................. 23 Table 8. Key components of navigation. ......................................................................................... 23 Table 9. Types of business funding deals. ......................................................................................... 25 Table 10. Types of internal funding, and their advantages and disadvantages. ...................... 26 Table 11. Types of external funding, and their advantages and disadvantages. ..................... 26 Table 12. Llist of funds that has synergies with Blue Restoration. ................................................... 32 Table 13. Performance metrics for nature-based solution businesses. ......................................... 38 Table 14. Value propositions of nature-based businesses. Source: Graf, 2023. .......................... 38 Table 15. Strategies for Stakeholder Engagement. ........................................................................ 40 Table 16. Strategies for Citizen Engagement. ................................................................................. 41 Page 6 D4. Roadmap and recommendations for training and transfer activities to market 1. Summary The marine and coastal ecosystems face unprecedented challenges, from the devastating impacts of climate change to the overexploitation of natural resources. As the critical balance of these ecosystems is threatened, there is a growing need to act quickly, decisively, and innovatively to restore and preserve the invaluable services they provide. From sequestering carbon and supporting fisheries to safeguarding against extreme events and nurturing biodiversity, marine and coastal ecosystems play a vital role in sustaining life on Earth. In response to this urgency, a new wave of innovators, environmentalists, and scientists is emerging with groundbreaking solutions that harness the power of nature-based approaches to restore and enhance these ecosystems. Their ideas, technologies, and methodologies hold the potential to not only revive the health of our oceans and coasts but also generate a sustainable market for innovative solutions that benefit both the environment and the economy. In that sense, the BlueMissionAA, as part of the Atlantic and Arctic lighthouse, aims to foster innovation by leveraging existing knowledge and best practices concerning ecosystem restoration, nature-based solutions, and biodiversity protection. To support the development of innovative technologies Task 4.2 Transfer services – from solution to market aims to help innovators by providing tools and knowledge for building their business plan, pitching, brokerage, and investment and entrepreneurial opportunities. The information is structured as a roadmap to make it easily accessible and support the development of business ideas in marine and coastal restoration. This report equips innovators and practitioners with the necessary information to advance their ideas and solutions towards market readiness. The roadmap has 8 steps for starting up a business with a focus on restoration (Restoration Purpose Business). Starting a Restoration Purpose Business allows innovators to leverage their entrepreneurial principles to organise, mobilise and manage a for-profit business supporting social and environmental change. Page 7 D4. Roadmap and recommendations for training and transfer activities to market 2. Barriers to scale up The decline in species diversity and abundance is one of the major global challenges for both terrestrial and aquatic environments. The biodiversity loss is driven by human activities that cause habitat destruction, fragmentation, and degradation, such as overfishing, pollution and invasive alien species; and those threats linked to climate change and its associated extreme weather events (Fajardo et al., 2021; Stewart-Sinclair et al., 2020; Selig et al., 2014). Biodiversity is essential for various industries and its conservation benefits to the overall economy. For instance, keeping marine fish stocks above sustainable levels can boost profits in the seafood sector. Similarly, protecting wetlands can reduce costs associated with flood damage. This accelerated loss of species diversity has far-reaching consequences, including the decline of functional diversity, reduced ecosystem productivity, resilience and stability, and diminished capacity for providing essential services like carbon sequestration and nutrient cycling. Additionally, biodiversity loss heightens risks to human well-being by, for example, increasing food insecurity (Fajardo et al., 2021; Selig et al., 2014). Conservation programs often offer significant benefit/cost ratios. Investing in natural capital, like habitat restoration and climate-friendly agriculture, is a key fiscal recovery policy with positive economic and climate impacts. Biodiversity is essential for food security, supporting food systems, healthy diets, and livelihoods. In that sense, ecological restoration comes to intervene in this scenario, whether by reducing stresses and threats or by creating direct actions to assist the recovery of the ecosystem (Stewart-Sinclair et al., 2020). Compared to terrestrial restoration, blue restoration is a relatively new field and, therefore lacks extensive knowledge and expertise. Bridging this gap and advancing restoration practices in aquatic ecosystems will be essential to meet ambitious goals for restoring coastal and marine environments. While still emerging, there has been a recent increase in projects and initiatives addressing blue restoration, involving a diverse range of stakeholders. However, many of these initiatives remain experimental and confined to small-scale implementations (Stewart-Sinclair et al., 2020). To achieve success in restoring our oceans and coasts comprehensively, scaling up blue restoration efforts is imperative. Gillies et al. (2015) underscore the importance of crafting a compelling business case, raising awareness, and advocating for a robust policy framework. The authors also identify the need for learning from terrestrial restoration experiences and encouraging expertise among practitioners are also crucial elements in garnering public and private support. These efforts are pivotal in driving large-scale initiatives that can deliver substantial environmental, social, and economic benefits. As a starting point practitioners need to be fully aware of the main barriers they will face and how they can effectively manage them, aiming to minimize their impact on the outcomes. According to Stewart-Sinclair et al. (2020), barriers to replicating and scaling up these initiatives can be categorised into five primary areas: environmental, technical, social, economic, and political. Page 8 D4. Roadmap and recommendations for training and transfer activities to market 2.1. Environmental Barriers Environmental barriers, for instance, encompass factors related to physical, chemical, biological, or hydrological characteristics that can significantly influence the likelihood of success in restoration efforts. These barriers may include land conversion, altered hydrological regimes, poor water quality, invasive species, resource overexploitation, climate change and extreme weather events (Table 1). Table 1. Environmental barriers and practical solutions, according to Stewart-Sinclair et al. (2020). Barrier Type Solution Environmental Land Conversion Sediment addition, staged reflooding, liming, and payments for ecosystem services. Hydrological modification Re-establishing hydrological regimes, and development of hydrological models. Water quality Water quality management, site selection. Invasive species Site selection, manual removal, increased biodiversity, and native species. Overexploitation Harvesting bans/limits, complementary planting, provision of alternative livelihoods, and community engagement. Climate change and Extreme events Site selection, risk management, niche modelling, benefit-cost analysis, and adaptive management. Other human disturbances Eco-mooring, zoning for low-impact areas, policy changes, and site selection. Overcoming these environmental barriers often requires careful assessment, planning, and implementation of restoration strategies tailored to specific ecological conditions and challenges. A more detailed example is highlighted in the box below. LAND CONVERSION One of the main drivers of marine biodiversity loss and habitat degradation is land conversion, such as salt marshes, seagrass, and mangroves. These conversions can alter the biogeochemistry of ecosystems, leading to potentially irreversible changes. Solutions to this issue can be reverting or reducing the biogeochemistry changes within the affected ecosystems. Another approach can be done by incentivising re-converting the converted land back to its original state. This incentive-based approach often relies on systems like payments for ecosystem services, which may include mechanisms for carbon finance. Page 9 D4. Roadmap and recommendations for training and transfer activities to market 2.2. Technical Barriers Technical barriers to blue restoration frequently jeopardize project success, particularly when site selection is inadequate or when there is a lack of capacity and expertise to support restoration efforts. Selecting a site for restoration involves not only environmental considerations but also political decisions to avoid, for example, land-use conflicts. Prioritizing a lower-conflict area over an optimal environmental area might compromise the results and overall success of the restoration project. Limited capacity and skills, on the other hand, can interfere with both the success and execution of these projects. A solution to this issue is increased investment in research and development of blue restoration methods, as well as the training of project personnel. Studies show that countries with higher investments in blue restoration research and knowledge development tend to have higher success outcomes (Stewart-Sinclair et al., 2020). Table 2 presents some solutions to these common technical barriers. Table 2. Technical barriers and practical solutions, according to Stewart-Sinclair et al. (2020). Barrier Type Solution Technical Site selection Guidance documents, trait matching for site conditions, and avoiding sites with climate-induced extremes. Capacity and knowledge Investment into research and development, increased communication of restoration outside of the global north. Overall, to improve the technical success of blue restoration projects, it is crucial to enhance communication and information-sharing. Increased investment in research, training, and publicly available best-practice guidelines can address these issues and improve restoration outcomes worldwide. RIGHTS, RESPONSIBILITIES, AND CULTURAL VALUE Restoration projects can significantly impact nearby human populations and those dependent on restored habitats. Therefore, considering the rights and responsibilities of coastal peoples and including all relevant stakeholders is crucial. Tensions may arise when the cultural value placed on blue ecosystems by Indigenous communities conflicts with restoration objectives. Solutions to this issue can be establishing a sustainable and culturally based harvest programme within restored habitats. This can enhance the participation, engagement, and support of communities in restoration projects. Page 16 D4. Roadmap and recommendations for training and transfer activities to market By clearly communicating these elements, you can build a strong case that underscores the necessity and benefits of marine restoration initiatives. 3.2.2. Step 2: Market and competitor research and analysis After filtering the most innovative solutions, it is time to deepen the knowledge around it and research what is being done to tackle the challenge chosen and who else is active in it. However, having previous experience with a particular issue is valuable; there are often multiple facets and nuances to consider in gaining a comprehensive understanding. A tool to investigate these is by performing market research. Market research is the process of gathering, analysing, and interpreting information about a market, including data on economic trends, consumer behaviour, and the competitive landscape. This information is used to understand the viability of a business idea, identify opportunities and challenges, and make informed decisions about product development, marketing strategies, and business operations. Market research helps businesses forecast potential success, refine their offerings, and better serve their target audience, ultimately supporting strategic planning and investment decisions. You can conduct market research independently by examining local competitors and surveying your target audience, or you can hire a market research analyst for a more comprehensive investigation. Some of these resources are available online on international websites and online blogs; another way is to look inside social networks to local and global business communities, events, meet-ups, and traditional media. Use these avenues to also identify key innovators and innovations worldwide, arranging interviews with experts and potential customers. It is important to explore beyond your specific industry, as insightful parallels and trends can be discerned by examining Social and Environmental Purpose Businesses in different sectors. The focus is to have a full understanding of how the current market is and map the market trends and gaps. You must also keep an eye on the technological innovations available worldwide to solve the elected challenge. Assess the technological components associated with the issue and their advancements. Map the technology your competitors are using to approach the issue and evaluate if your solution will offer a unique and better way to tackle the problem. Another aspect of learning is the cultural and social dynamics around the chosen challenge. It is important to note that the communities or societies involved perceive and interact with this issue. That may include an analysis of the economic implications of the topic, especially when it impacts various stakeholders. Useful tools: • User interviews. • Surveys. • Market analysis. • Mapping stakeholders. • Competitor research. Remember: New business that offers more innovative and unique solutions have more chances to survive in the market. Page 17 D4. Roadmap and recommendations for training and transfer activities to market This overview will be important to help you determine who is going to buy your product. For learning that you will need to implement in-depth research to understand user needs, pain points, and emerging market trends. Finally, investigate the legal and regulatory aspects governing. Make a diagnosis of what laws or regulations are in place or what are the gaps. Furthermore, identify how the current legal and regulatory framework affects the business, then evaluate if that is an opportunity or a threat to the business development. 3.2.3. Step 3: Refine your idea. When starting a business, it is common to revisit and revise your plans. With the information you have gathered so far, now is an ideal time to refine your innovative solution. Most business ideas require investment, creativity, and time to yield results, often involving financial risks. Therefore, it is time to refine and test your idea to ensure its viability. During this step, you must be bold, but also realistic. While it is important to choose a business idea that is in line with your passions, it is also crucial that there is market demand for your product or service. Revisit your findings in the previous steps and confront them with your chosen business idea Figure 3. Figure 2. Stages of developing a business idea. Page 18 D4. Roadmap and recommendations for training and transfer activities to market Figure 3. Defining a problem framework, based on Nesta and The Rockefeller Foundation (2014). At this level, you are able to say if your business idea is scalable or not; if you offer a unique solution; the target market and stakeholders; and even if you and your team have the necessary skills and expertise. Make a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) to provide valuable insights into your business outlook compared to competitors. For Blue Restoration businesses, this might involve assessing your unique capabilities in restoring marine ecosystems (strengths), identifying gaps in your technical expertise (weaknesses), recognizing emerging opportunities in sustainable fisheries (opportunities), and anticipating regulatory changes or environmental challenges (threats). This tool will help you strategically position your business in the Blue Restoration sector. Define the architecture, user experience, and technical specifications of your Blue Restoration innovation. This involves designing how the solution will function, ensuring a seamless user experience, and detailing the technical requirements. For example, if you are developing a water purification system, outline how the filtration process will work, design an intuitive interface for users to operate the system easily, and specify the exact technical components needed for optimal performance. Do not forget to specify the environmental benefits of the solution. Try to define good key performance indicators (KPIs) to measure your future impact and success. By focusing on these aspects, you will not only refine your innovation but also ensure it meets the high standards expected in the field of Blue Restoration. NAME If you have not yet settled on a name for your innovative solution, now is the perfect moment to do so. As you prepare to access a more diverse range of investments, having a well-prepared business plan that includes a compelling name is crucial. Your business name should effectively convey your vision and make a strong first impression on potential clients. Useful tools: • SWOT analysis • Problem definition • Causes Diagram • Business model canvas Defining the business concept: • Has a high failure rate and is highly dependent of the research and leadership. • Can be qualified for Grants. Page 19 D4. Roadmap and recommendations for training and transfer activities to market k : ☐ Defined Your Goal and Purpose: Clearly articulate the core mission and values of your business. ☐ Conducted Thorough Research: Gather detailed information about market trends, consumer behaviour, and the competitive landscape, focusing on Blue Restoration. ☐ Identified the Problem: Pinpoint the specific environmental challenge your business aims to address. ☐ Generated Ideas: Brainstorm and develop innovative solutions, leveraging insights from diverse specialists. ☐ Performed a SWOT Analysis: Evaluate your business's strengths, weaknesses, opportunities, and threats to understand your market position and strategy. ☐ Refined and Tested Your Idea: Ensure your concept is viable by refining and testing it against market demands and potential risks. ☐ Mapped Specific Coastal and Marine Environmental Challenges: Identify and document the key environmental issues affecting coastal and marine areas. ☐ Identified Opportunities for Intervention: Determine the potential areas where your business can make a significant impact. ☐ Acquired Comprehensive Knowledge of Ecosystem Dynamics: Gain a deep understanding of the relationships and processes within the ecosystems you aim to restore. ☐ Understood the Ecological Impact: Assess the potential consequences of the environmental challenges and the benefits of your interventions. ☐ Identified and Mapped Main Actors: Recognize and document the key stakeholders involved in addressing these environmental challenges. 3.2.4. Step 4: Making the case: Business Plan Writing a business plan is a crucial step for establishing, operating, and expanding your Blue Restoration business. As you draft your plan, envision the future trajectory of your business in restoring and preserving natural environments. Anticipate and strategize solutions for potential challenges unique to environmental restoration and visualize the impact your business will have on sustainability efforts. This document is essential not only for guiding your path but also for presenting a clear vision to potential partners, investors, or funders. For that, you need to define the goals, strategies, and indicators of success. Useful tools: • Theory of change • Business plan models Page 20 D4. Roadmap and recommendations for training and transfer activities to market While writing your business plan remember to tailor the message and positioning to effectively communicate the innovation's value proposition to target audiences. It will be also necessary to identify key partnerships and channels to reach customers and maximize market penetration. Keep in mind that one of the primary challenges for a new business is demonstrating profitability. Therefore, you must develop a comprehensive strategy that encompasses costs and pricing, distribution, marketing, and sales. You have the flexibility to structure it in a way that best communicates your innovative approach to Blue Restoration. Many entrepreneurs opt for a comprehensive and detailed business plan. While others choose a lean start-up business plan, which is a concise one-page document presenting highlights of the details typically found in a traditional business plan. The lean format is effective for quickly introducing your business idea. However, as interest grows, potential partners or backers may request a more detailed presentation. Overall, a business plan is a comprehensive document outlining the operational and financial goals of a business. It provides detailed schemes and budgets, offering a roadmap to achieve successful business start-ups and ongoing operations. Moreover, the business plan will reflect the level of maturity of the new business, thus the maturity level needs to be clear in the document. Although the structure can vary, traditional business plans typically include several key features (Figure 4). An executive summary, for example, should describe the proposed solution, outline the goals, and explain how they will be achieved. The company description provides an overview of the business structure, team, location, and other essential details. The background summary contextualizes the problem you are addressing, providing all the necessary information to understand its significance. Following this, you need to present how your innovation will help solve the problem. The market research section should detail how your solution is positioned in the market, covering competitors, target market, market size, trends, and gaps in the market. In the structure should be presented the uniqueness of your solution, a market plan summarizing among other things, the SWOT analysis, the milestones, KPIs and risks. Lastly, the most important section, the financial plan. It includes detailed forecasts of revenue, expenses, cash flow, and profitability, funding request, and other key financial statements. This section demonstrates the financial viability of the business and is crucial for attracting investors and securing funding. Regardless of the level of maturity, always incorporate a go-to-market strategy, even if preliminary, in your proposal. This displays a commitment beyond technological development, demonstrating early efforts to address the commercial impact of the project and its potential contribution to the companies' scale-ups. Making the case: • Prepare to adapt approach, based on evaluation results and user feedback • Is an important milestone of the business. • Can be qualified for Grant funding or funding out of investment. Page 21 D4. Roadmap and recommendations for training and transfer activities to market Figure 4. Business plan structure and key features. To decide which business plan structure fits best for your blue restoration-based business, explore different models and tailor them to your specific needs. Unlike traditional business plans, your restoration-based plan should emphasize sustainability, environmental impact, and long-term ecological benefits. The internet offers countless resources to guide you. Experiment with various formats to find the one that authentically represents your vision and strategy. 3.2.5. Step 5: Business Legal Structure The next crucial decision lies in selecting the appropriate business legal structure. This choice should align with the new business needs, objectives, and geographical context of your enterprise. It is important to learn the distinct types, and which one applies the best for the new business you want to set up. This decision will influence the organisational framework, governance, taxation, regulatory compliance, and the capacity to attract investments and partnerships for your business. Across Europe, there are many similar types of legal entities. However, some regulations may differ from country to country. In general terms, some examples of the common legal types for startups, SMEs, and large corporations found in the EU state members are private and public limited companies, limited partnerships, sole proprietorships, and associations. These legal Page 22 D4. Roadmap and recommendations for training and transfer activities to market structures offer various levels of liability protection, operational flexibility, and regulatory requirements. Because of the local particularities, it is important to learn the legal structures of the country you chose to set up the business. This can also be an opportunity to consider the possibilities of expanding to new countries in the long term if that is relevant to your business plan. One of the challenges of setting up a business with environmental and social purposes is to choose in which structure this new enterprise would fit best. Because of that, before deciding upon a legal structure for your business, be sure to do your research, speak to other entrepreneurs about their experience and make sure you understand the impact your decision will make on your business. Ultimately, seeking legal advice may help you understand how different options match your goals and comply with regulations, making your decision more informed and ensuring your business starts off on the right foot (Table 6). Table 6. Some good sources to search for legal structures. Where to start? Link EU Startups Compact overview of the most common legal entities for companies in all EU member states https://www.eu-startups.com/2022/12/compactoverview-of-the-most-common-legal-entities-forcompanies-in-all-eu-member-states/ Your Europe Questions on your rights in the EU? Or your obligations? https://europa.eu/youreurope/index_en.htm A practical guide to doing business in Europe https://europa.eu/youreurope/business/index_en.htm Setting up a European Company (SE) https://europa.eu/youreurope/business/runningbusiness/developing-business/setting-up-europeancompany/index_en.htm Business.gov.nl European business structures https://business.gov.nl/starting-yourbusiness/choosing-a-business-structure/europeanbusiness-structures/ Legal & Regulatory Frameworks Dealing with legal and regulatory frameworks is a crucial aspect of moving research and innovation to market, especially in the field of ocean protection and restoration. In Europe, both the European Union (EU) and national regulations play significant roles in governing activities related to marine environments. The EU has established comprehensive policies and directives aimed at protecting marine ecosystems, promoting sustainable use of ocean resources, and ensuring the responsible development of new technologies. These include the Marine Strategy Framework Directive, the Habitats Directive, and the Water Framework Page 23 D4. Roadmap and recommendations for training and transfer activities to market Directive, among others. At the national level, individual countries implement these directives and may also have their own additional regulations and standards that must be adhered to. Navigating and adhering to the various laws, regulations, and policies set forth by government entities and other regulatory bodies that govern business activities in ocean restoration typically includes: Table 7. Governmental business activities in ocean restoration. Environmental Impact Assessments (EIA) Conducting thorough assessments to understand and mitigate the potential environmental impacts of proposed innovations. Permitting and Licensing Securing the necessary permits and licenses required for activities that involve marine environments, which may include research permits, construction permits, and operational licenses. Compliance with Environmental Regulations Ensuring that all activities comply with national and EU environmental laws, including waste management, pollution control, and habitat protection. Intellectual Property Rights (IPR) Protecting the intellectual property of innovations through patents, trademarks, and other legal mechanisms. Stakeholder Engagement Engaging with local communities, governmental agencies, and environmental organizations, to align the innovation with broader conservation and societal goals. Health and Safety Regulations Adhering to regulations that ensure the safety of personnel and the public, mainly in research and field implementation stages. Funding and Grants Compliance Ensuring compliance with the terms and conditions of any public or private funding received, which may include reporting requirements and financial audits. Successfully navigating legal and regulatory frameworks is essential for bringing sustainable, compliant, and socially responsible ocean restoration solutions to market. This requires a proactive approach, continuous monitoring, and a commitment to compliance to ensure the legal and ethical operation of the business. Key components of this navigation are shown in Table 8. Table 8. Key components of navigation. Components Description Understanding Regulations Thoroughly comprehending the specific regulations that apply to your industry, business type, and geographic location. Compliance Management Developing and implementing processes to ensure compliance with relevant laws and regulations, including obtaining necessary permits, licenses, and certifications. Monitoring Changes Keeping abreast of changes in regulations and anticipating how they may impact your business operations. Page 24 D4. Roadmap and recommendations for training and transfer activities to market Components Description Risk Assessment Evaluating the potential risks associated with non-compliance and implementing strategies to mitigate these risks. Documentation and Record-Keeping Maintaining accurate records and documentation to demonstrate compliance with regulatory requirements. Engagement with Regulatory Bodies Building relationships with regulatory agencies and participating in relevant industry associations or forums to stay informed and influence regulatory developments. Training and Education Providing training and education to employees to ensure they understand their responsibilities regarding compliance with regulations. Adaptation and Flexibility Being adaptable and flexible to adjust business practices and strategies in response to changes in regulatory requirements. 3.2.6. Step 6: Funding and Investment Despite the significant role of the blue economy in the EU, investments in sustainable practices, b , . , €87 environmental protection and regeneration solutions, reflecting challenges such as the sector's focus on public good objectives and the perception that many business models are not attractive to private investors. Blue restoration faces additional hurdles due to high project risks and scalability issues. While early-stage investors and grants show promise, they lack strong commercial incentives. However, as public awareness and corporate environmental obligations grow, businesses' ability to develop viable and appealing projects for investors is expected to improve over time (BlueInvest, 2024). According to the BlueInvest report (2023), the types of investors present in the blue economy include both private and non-private financing players. Private investors encompass angel investors, high net-worth individuals, venture capital firms, incubators/accelerators, private equity and growth capital firms, as well as asset managers dealing with relevant blue funds and private corporations, including corporate ventures. Non-private financing players consist of national promotional banks (NPBs), multilateral development banks (MDBs), sovereign wealth funds, aid agencies, foundations, philanthropic foundations, and NGOs. These different investors can provide various types of deals that accommodate to different stages of growth and financial needs. Understanding these funding options is crucial for aligning financial strategies with business objectives. The Table 9 outlines the primary types of business funding deals, describing their purposes and characteristics. Page 25 D4. Roadmap and recommendations for training and transfer activities to market Table 9. Types of business funding deals. Type of Deals Description Pre-Seed Funding Initial funding to develop a business concept, often from personal savings or friends and family. Seed Funding Early investment for product development and market research, typically from angel investors or seed funds. Series A Funding First significant venture capital round to scale the business, expand the team, and refine the product. Series B, C, D Funding Subsequent rounds for further scaling operations, entering new markets, and developing additional products. Growth Equity Investments in mature companies to accelerate growth, are used for expansion, acquisitions, or increasing market share. Initial Public Offering (IPO) Offering shares of a private company to the public to raise capital from public investors. Financial Acquisitions Investments by financial institutions or private equity firms to acquire significant stakes in a company. Corporate Acquisitions One company purchases another to expand operations, enter new markets, or acquire new technologies. Convertible Notes Short-term debt that converts into equity during a future financing round. Mezzanine Financing Hybrid of debt and equity financing with the right to convert to equity in case of default. Subordinated Loans Loans are repaid after all other debts are settled in the event of liquidation. Types of funds Starting a business often requires securing the necessary funds to turn your vision into a reality. There are many ways to fund your business – some require considerable effort, while others are easier to obtain. Commonly, small businesses may have to use a combination of several sources of capital. Funding sources can be broadly categorized into two types: internal and external. Internal funding refers to using personal or closely sourced funds to get your business off the ground. This type of funding is often more straightforward to obtain, though it may come with its own set of challenges (Table 10). Page 32 D4. Roadmap and recommendations for training and transfer activities to market Table 12. Llist of funds that has synergies with Blue Restoration 1 . Funds Type Profile Target fund size Stage of development Katapult Ocean2 Incubator/ Accelerator Investing in ocean impact companies that solve climate and biodiversity challenges and provide food and water globally. € 75 million Projects, start-up and scale ups Venture Capital Early-stage start-ups and scale ups Sarsia3 Venture Capital Focus on science-based technologies in the Blue Economy. Invest in fields such as electrification, green shipping, aquaculture and fishing, biotech, and monitoring the ocean. € 75 Early-stage start-ups and scale ups Ocean 14 / Capital Fund 14 Private Equity Invest in fields such as aquaculture, sustainable fisheries, alternative protein, marine flora/seaweed, and circular economy/plastics. € 200 Later-stage, established companies with potential to scaleup Meridiam – Sustainable Water and Waste Fund5 - Invests in infrastructure and tech with a focus on sustainable waste solutions. € 1,7 - 1 This list is a non-exhaustive list of the funds that has a clear connection with Blue Restoration in the Atlantic and Arctic basis. It is primarily based on the BlueInvest work. For accessing the more extensive list for Blue Economy potential investors and funds/grants, please access the BlueInvest reports here: BlueInvest Community | Investor Report (converve.io). 2 https://katapult.vc/ocean/ 3 https://sarsia.com/ 4 https://ocean14capital.com/ 5 https://www.meridiam.com/ Page 33 D4. Roadmap and recommendations for training and transfer activities to market Funds Type Profile Target fund size Stage of development Faber Blue Pioneers I Fund6 Venture Capital Invests in early-stage deep-tech impact-driven start-ups for ocean sustainability and decarbonisation. € 35 Pre-seed to series A Mirova – Sustainable Ocean Fund7 Private Equity Focus on marine and coastal projects and enterprises that can deliver sustainable economic returns in fisheries, aquaculture, associated seafood supply chains, ocean waste & recycling and marine conservation. First fund closed at US$132 million (second fund target: US$250 million) Start-ups / post revenue Swen Capital Partners – Blue Ocean8 Private Equity Innovation for ocean health, such as solutions to overfishing, solutions to marine pollution and marine solutions to climate change. € 170 million Start-ups in laterstage, established companies with potential to scaleup Astanor Ventures9 V b , w f , w , b . € 360 , w ’ Circular Plastics Fund10 - F - - w . € 150 - Indico Blue Fund11 Venture Capital Tackle climate action by focusing on ocean-related companies in all Blue Economy sectors (except extractives) that have a positive impact on ocean ecosystems, such as blue clean tech, blue biotech, digital ocean, green shipping, water and waste € 50 Earlyto growthstage businesses; start-ups and SMEs 6 https://www.faber.vc/focus/ 7 https://www.mirova.com/en 8 https://www.blueoceanspartners.com/ 9 https://astanor.com/ 10 https://infinity-recycling.com/circular-plastics-fund 11 https://www.indicocapital.com/ Page 34 D4. Roadmap and recommendations for training and transfer activities to market Funds Type Profile Target fund size Stage of development management, sustainable aquaculture, renewable energy. F 12 Venture Capital Invests in companies targeting the global challenges of the UN Sustainable Development Goals. These include climate change, education, health, security, and sustainable growth. US$ 23 million Early-stage start-ups and scale ups (Seed to series B) F , , F 13 Incubator / Accelerator Sustainable and regenerative aquaculture industry, and alternative seafood technologies € 75 Early to growth stages Venture Capital 2 V - F 14 Venture Capital Invests in ocean health, climate resilience, and food security, focus on decarbonization, ocean intelligence, blue biotech and material, blue foods. € 300 Late-stage venture and growth-stage businesses 15 Venture Capital Invests in sustainable blue food industry. The Fund has a geographical focus on the Arctic Basin, specific northern Norway. - Early-stage Private Equity V – F 16 Venture Capital Focus on investments that contribute directly to the Sustainable Development Goal 14. Covering the fields of plastic alternatives and removal, seafood, biodiversity and aquaculture, renewable energy and blue carbon, and maritime tech, robotics and big data. € 100 Pre-seed to Serie B 12 https://futureplanetcapital.com/ 13 https://www.hatch.blue/portfolio 14 https://www.s2gventures.com/strategy 15 https://www.olaisenblue.no/our-program 16 https://unitedocean.fund/ Page 35 D4. Roadmap and recommendations for training and transfer activities to market Funds Type Profile Target fund size Stage of development V x F 17 Philanthropic investors Supports a wide range of projects and initiatives, primarily in the areas of science, environmental sustainability, social projects, and cultural endeavours. In the ocean field, aim to contribute to a healthy marine environment capable of withstanding climate change. Having as target projects in the restoration of the marine and ecosystem with a focus on climate, combating pollution in marine environment, and future climate solutions (e.g. carbon capture and storage, decommissioning of offshore oil and gas installations). Grants and funding for projects in various stages of development – F 18 Invests in five different topics to address a regenerative ocean. The focus areas are Healthy, regenerative, and equitable blue food; plastic pollution; climate mitigation; restoration and protection; and ocean data. € 100 Focus on Series A (+ follow on), but also provides a small pocket for late seed F 19 Venture Capital Alternative aquatic nutritional sources & plant-based (algae), precision mariculture and robotics, sustainable fishing, food loss and waste reduction, energy & carbon capture, plastic alternatives & reusables, ocean, and earth data generation. € 30 Early stage (preseed up to series A) F 20 Impact Investor Seek to generate both financial returns and measurable positive social and environmental impacts. Their investments focus on environmental sustainability, including projects in renewable energy, sustainable 17 Conservation of the ocean | Velux (veluxfonden.dk) 18 https://www.reoceanfund.com/en/index 19 https://planetocean.fund/ 20 Home - Finance Earth Page 36 D4. Roadmap and recommendations for training and transfer activities to market Funds Type Profile Target fund size Stage of development agriculture, and habitat restoration. They also provide specialist advice on finance by creating financing tools to deliver and scale solutions for nature, communities and investors. Page 37 D4. Roadmap and recommendations for training and transfer activities to market By understanding the range of funding sources available, you can strategically select the best options to support your business in its initial phase. Each funding method—whether through venture capital, grants, or other forms—comes with distinct advantages and disadvantages. Carefully assessing these factors will help determine the most suitable approach aligned with your specific situation and business goals. In conclusion, while investments in innovative blue restoration solutions face challenges such as perceived high risks and scalability issues, there is significant promise for growth. Early-stage investors and grants provide crucial initial support, albeit with limited immediate commercial incentives. As public awareness of environmental preservation grows and corporate responsibilities expand, the prospects for developing valuable and compelling projects that appeal to a wider investor base are increasingly promising for the future. 3.2.7. Step 7: Out on the Market Pre-launch When launching an innovation into the market, it is essential to develop a detailed go-tomarket plan with clear timelines, milestones, and responsibilities. The launch plan should encompass pre-launch activities such as teasers, press releases, and influencer partnerships, as well as post-launch activities like follow-up campaigns and customer support. Few of the things you need to arrange prior to launching, one of them is to define is how you want your brand to be perceived and develop clear, consistent messaging that resonates with your target audience. Another is to choose a pricing model that aligns with your business goals and determine the optimal price points to maximize profitability and market penetration. Those decisions will help you to identify the most effective sales channels and develop a distribution strategy to reach target customers efficiently. As well as select appropriate marketing channels and plan promotional activities to generate awareness and interest. After launch Once the innovation is launched, continuously monitoring market response and performance metrics (key performance indicator (KPI)) allows for informed decision-making and strategy adaptation as needed enabling businesses in the blue restoration sector to ensure their efforts are effective, efficient, and aligned with their environmental and organizational goals. Table 13 provides an overview of different types of metrics that can be applied in the context of blue restoration. Page 38 D4. Roadmap and recommendations for training and transfer activities to market Table 13. Performance metrics for nature-based solution businesses. Type Performance metrics Environmental Biodiversity improvement, habitat restoration, water quality, ecosystem health Financial Return on investment (ROI), funding secured, cost efficiency Customer Customer satisfaction, market penetration Project Completion rate, survival rate (of restored species), area restored Stakeholder Community involvement, and partnerships formed To ensure that the innovation meets the needs and expectations of the market and the willingness to adopt the innovation among the target audience, businesses must conduct small-scale pilot tests or beta launches to validate the innovation in realistic settings. Collecting data and feedback from these tests helps assess performance, feasibility, and user satisfaction. Deploying structured surveys and questionnaires for interviews allows for the collection of specific insights related to the restoration projects and their outcomes from a broad audience. Additionally, meetings involving users, stakeholders, and experts, such as members of the local community, business leaders, and environmental groups, offer chances for in-depth discussions and detailed input. Additionally, the feedback is vital for identifying strengths, weaknesses, and areas for improvement. Furthermore, scaling operations and infrastructure to meet growing demand while maintaining quality and customer satisfaction is crucial. Providing long-term economic benefits along with environmental and social benefits to all customers is essential. Therefore, having diverse value propositions (see Table 14) across the portfolio is advantageous. Especially, the improvement of the restoration efficiency is a key value proposition for businesses that focus on marine restoration as their core activity (Graf, 2023). Accordingly, the gathered feedback can be used to refine and enhance the value propositions of the business. The table below provides some examples of value propositions for businesses acting in the sector of marine restoration. Table 14. Value propositions of nature-based businesses. Source: Graf, 2023. Value propositions Economic Improved restoration efficiency, attractiveness, impact communication, improved monitoring, risk education Environmental Restoration, new reefs, low environmental impact, likeness to nature, coastline protection Social Individual contribution, aesthetic value, education, support of local community Useful tools: • Post-launch surveys • Feedback platforms • Collect qualitative data by using surveys • Collect quantitative data by analytics tools • Monitor the key performance indicators (KPIs) Page 39 D4. Roadmap and recommendations for training and transfer activities to market Continuous innovation and improvement are essential for long-term business success. Fostering a culture of innovation involves encouraging open communication, promoting idea-sharing, and supporting cross-functional collaboration to combine diverse expertise. Ongoing training programs keep employees updated on the latest technologies and methodologies. Recognizing and rewarding innovation through recognition programs and incentives motivates employees to contribute new ideas. Establishing dedicated innovation teams to explore new technologies, processes, and methods for marine restoration is also beneficial. Finally, ensuring continuous learning and adaptation and setting clear, achievable innovation goals aligned with the organization's mission provides direction and focus for innovation efforts. 3.2.8. Step 8: Effective communication and engagement Although we cannot recreate the coastal and marine conditions of the past, it is necessary to have the understanding that with marine and coastal restoration, it is possible to improve and repair these ecosystems. For that, people need to know about the problem and their solutions. Shifting Baselines Many people view today's degraded state of bays and estuaries as normal. However, this perception can change by communicating the ecological histories of these areas. Historical records of once-abundant oyster reefs and stories from Indigenous groups and older generations can illustrate the past richness of these ecosystems. To foster this change, an effective communication and engagement programme is crucial. Educational campaigns, community workshops, and digital media can play pivotal roles in spreading awareness about marine and coastal restoration. Involving local communities, policymakers, scientists, and educators helps create a collective understanding of the importance of these ecosystems. By highlighting the concept of shifting baselines, we can show that today's degraded conditions are far from the historical norm, encouraging a shared vision for restoration. Engaging the public with compelling narratives and visual evidence of past ecosystem health can inspire action and support for conservation initiatives, ultimately driving efforts to restore and protect our invaluable coastal and marine environments. Engaging Stakeholders Successful restoration and effective stakeholder engagement are crucial for achieving project goals. Engaging diverse stakeholders like recreational fishers, community groups, school children, traditional owners, and the media not only builds support and momentum for marine restoration but also fosters relationships, builds trust, and manages risks essential for project success. This engagement ensures active involvement and clear communication with all invested parties, promoting positive outcomes for the project or organization. Page 40 D4. Roadmap and recommendations for training and transfer activities to market Table 15. Strategies for Stakeholder Engagement. Stakeholder Engagement Identifying Stakeholders This involves identifying all individuals, groups, or organizations that may be affected by or have an interest in the project. Stakeholders can include investors, employees, customers, suppliers, regulators, community members, and others. Understanding Stakeholder Needs and Expectations It is important to understand the needs, concerns, expectations, and interests of each stakeholder group. This can be achieved through surveys, interviews, focus groups, or other forms of communication. Communication Channels Establishing effective communication channels to engage with stakeholders is crucial. This may include regular meetings, newsletters, email updates, social media, dedicated websites, or other platforms. Two-way Communication Fostering open and transparent communication where stakeholders freely express opinions, provide feedback, and ask questions is crucial for building trust and credibility. Consultation and Collaboration Involving stakeholders in decision-making processes, seeking their input, and collaborating with them to develop solutions can lead to better outcomes and buy-in from all parties involved. Managing Expectations Setting clear expectations with stakeholders about timelines, outcomes, and risks is crucial to prevent misunderstandings or conflicts. Addressing Concerns and Resolving Conflicts Actively listening to stakeholder concerns and addressing them in a timely and effective manner can help prevent conflicts from escalating and maintain positive relationships. Monitoring and Evaluation Continuously monitoring stakeholder engagement efforts and evaluating their effectiveness can help identify areas for improvement and ensure that stakeholders remain engaged throughout the project lifecycle. Citizen Engagement Promoting effective citizen engagement involves a diverse range of stakeholders, including residents, community organizations, youth groups, indigenous communities, and media outlets. This fosters enthusiasm and momentum for civic engagement, enhances democratic governance, improves decision-making, builds trust, and encourages ownership and accountability among citizens. Active community involvement in decision-making processes is crucial for achieving these objectives. Page 41 D4. Roadmap and recommendations for training and transfer activities to market Table 16. Strategies for Citizen Engagement. Citizen Engagement Information Sharing Providing citizens with relevant information about government policies, programs, projects, and decisions in a clear, accessible, and transparent manner. This includes publishing reports, holding public meetings, and utilizing digital platforms for communication. Consultation and Feedback Mechanisms Seeking input, feedback, and opinions from citizens on various issues, projects, or policies. This can be done through surveys, public hearings, town hall meetings, focus groups, or online forums. Collaborative Decision Making Involving citizens in the decision-making process by considering their input and incorporating their perspectives into policy development, planning, and implementation. This may involve establishing advisory boards, citizen panels, or participatory budgeting processes. Empowerment and Capacity Building Building the capacity of citizens to participate effectively in decisionmaking processes by providing them with the necessary information, resources, and skills. This may include offering training workshops, educational programs, or civic engagement initiatives. Transparency and Accountability Ensuring transparency in government actions and decisions by making information readily available to citizens and holding public officials accountable for their actions. This can help build trust between government institutions and the public. Digital Engagement Leveraging technology and digital platforms to facilitate citizen engagement, such as online consultations, social media engagement, crowdsourcing platforms, and mobile apps for feedback and participation. Community Empowerment and Participation Encouraging and supporting grassroots initiatives, community-led projects, and neighbourhood associations to empower citizens to address local issues and contribute to community development. Evaluation and Continuous Improvement Assessing the effectiveness of citizen engagement efforts and processes, gathering feedback from participants, and adjusting as needed to improve engagement outcomes and strengthen public participation.