Assessing an EIC Accelerator Applicant for Innovation, Traction and the Team (SME Instrument) - Part 1
When developing a project for an EIC Accelerator grant or equity application (formerly SME Instrument Phase 2), it is often useful for professional writers and consultants to look at certain key areas in order to obtain a fast overview of the project's quality.
There are many sub-criteria to be analyzed that help in gaining a thorough understanding of a project but, for a rapid screening, a few core areas are sufficient to focus on. While consultants could break such an assessment down in a variety of ways based on professional preferences, the following presents a useful method to qualify prospect EIC Accelerator grant applicants in order to estimate their success chances:
- Innovation - this article
- Traction - read: Part 2
- Team - read: Part 3
1. Innovation
The term innovation, in and of itself, is supposed to give an answer to the question "Is the product or service unique and new?". The innovative nature of the project is a key aspect of the EIC Accelerator which, since it is managed by the European Innovation Council (EIC), has placed "Innovation" at the core of its mission statement.
The EIC does not merely fund great businesses or supports European companies just based on their location but is explicitly targeting market disrupting and market-creating companies with the goal of supporting future European unicorns, i.e. companies valued at €1 billion+.
In order to fully assess such a project, looking at the innovation has to always come first and precede the assessment of any other segment. As an example, useful subsegments to further elaborate on the innovative nature of a project can be:
1.1 The Origin of the Innovation
From experience, most innovative companies are directly coming from two main subsegments which are:
A - The technical side (i.e. a university spin-off, technical experience, etc.) which means that they are close to cutting-edge Research & Development which makes them uniquely positioned to exploit the opportunity or
B - The industry-side through close relationships to stakeholders and industry players who are directly suffering from the customer pain point and are openly seeking a solution.
These two subsegments are not perfectly separated but often exhibit a strong overlap. In general, all types of innovations will at least fall into one of these two sub-categories. The origin of the innovation will very often give the professional writer or consultant an idea of its quality and, if analyzed thoroughly, can make an EIC Accelerator grant award much more likely.
1.2 Relationships Between the Innovation and the Customer Pain Points
Understanding that not every innovation is actually worth any kind of revenue is an important first step in investigating an EIC Accelerator project. A product or service can be highly innovative but it might not be easier to use or lower in costs compared to market alternatives which begs the question, "Why would a customer want this innovation?".
There are plenty of examples of things that are different but not needed and can be described as an unwanted innovation. In order to avoid this, the assessment of a startup or Small and Medium-Sized Enterprise (SME) should include the relationship between the customer pain points, the Unique Selling Points (USP) of the innovation and the key technological features of the product or service.
This relationship will immediately tell the consultant or professional writer if an innovation is suitable for the EIC Accelerator grant financing or not since the official EIC template heavily screens for innovative and profitable projects.
1.3 The Intellectual Property Rights (IPR) Status of the Innovation
Just like the innovative nature of a project, the IPR status can be a useful way to identify its core aspects but, in the same fashion, IPR does not equate innovation from an investors perspective. Patents can be very broad and can be filed for minuscule inventive steps that might not properly protect the market introduction of a certain product.
Just because something has been patented does not mean that the innovation assessment will be high by default. The IPR should only be the tip of the iceberg after the proposal has already explained how the innovation directly addresses the customer needs and is substantially better than any other market alternatives.
IPR should also not be viewed as the ultimate innovation proof since some innovations are better protected through secrecy because a patent, in and of itself, could already give the competition too much information and jeopardize the startup's success.
1.4 The Barrier for Competitors to Copy the Innovation
Lastly, one key part of assessing if an innovation is suitable for substantial investments under the EIC Accelerator is its protection from a technological side. Having an innovation that is easy to copy will always reduce the success chances of the resulting evaluation process since the core barriers for all potential me-too competitors has to be addressed convincingly.
When a company like Facebook launched a successful social network, many other companies were aiming to replicate this success and, in order to persevere, the original company must have had clear barriers in place to protect its position on the top.
Such barriers can be in the form of know-how, proprietary methods, IPR, a head start or commercial factors such as industry relationships, customer interest, exclusivity agreements, etc.
Summary
Assessing the innovation of a prospect EIC Accelerator applicant is key for professional writers and grant consultants in preparing a competitive proposal and increasing its success chances significantly. The main criteria to assess a project's innovation and to ensure a positive evaluation are:
- The origin of the innovation (technical- & industry-side)
- Solving a customer pain point
- Intellectual Property Rights (IPR)
- Barriers to entry
Part 2 (Traction) and Part 3 (Team) of this article can be found under the provided links.
These tips are not only useful for European startups, professional writers, consultants and Small and Medium-Sized Enterprises (SME) but are generally recommended when writing a business plan or investor documents.
Deadlines: Post-Horizon 2020, the EIC Accelerator accepts Step 1 submissions now while the deadlines for the full applications (Step 2) under Horizon Europe are listed below. The Step 1 applications must be submitted weeks in advance of Step 2. The next EIC Accelerator cut-off for Step 2 (full proposal) can be found here. After Brexit, UK companies can still apply to the EIC Accelerator under Horizon Europe albeit with non-dilutive grant applications only - thereby excluding equity-financing. Switzerland has resumed its participation in Horizon Europe and is now eligible for the EIC Accelerator.
EIC Accelerator Step 1 Deadline 2025
Contact: You can reach out to us via this contact form to work with a professional consultant.
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Eureka Network: The Eureka Network delivers various international collaborative R&D initiatives such as Network Projects, Clusters, Eurostars, Globalstars, and Innowwide, providing funding from €50K to €6.75M per project based on the specific initiative. This network emphasizes market-driven innovation and deep-tech advancement across multiple technology sectors including ICT/Digital, Industrial/Manufacturing, Bio/Medical Technologies, Energy/Environment, Quantum, AI, and Circular Economy. Eligible participants include SMEs, large enterprises, research organizations, universities, and startups, with Eurostars particularly focused on R&D-performing SMEs. Get Started
EIC Transition: EIC Transition delivers up to €2.5 million in funding to overcome the 'valley of death' gap between laboratory research and market deployment, emphasizing technology maturation and validation. The initiative supports single legal entities or small consortia of 2-5 partners including SMEs, start-ups, spin-offs, and research organizations. Key technology domains include Health/Medical Technologies, Green/Environmental Innovation, Digital/Microelectronics, Quantum Technologies, and AI/Robotics. Get Started
EIC STEP Scale-Up: EIC STEP Scale-Up delivers significant equity investments of €10-30 million for established deep-tech companies prepared for hyper-growth and large-scale expansion. The initiative targets SMEs or small mid-caps with up to 499 employees who have obtained pre-commitment from qualified investors. Primary focus areas include Digital & Deep Tech (Semiconductors, AI, Quantum), Clean Technologies for Net-Zero objectives, and Biotechnologies. Get Started
EIC Pre-Accelerator: EIC Pre-Accelerator represents a 2025 pilot initiative delivering €300,000-€500,000 in funding for early-stage deep-tech development and preparation for the EIC Accelerator program. This program is exclusively accessible to single SMEs or small mid-caps from 'Widening countries' to foster regional innovation development. The initiative encompasses deep-tech innovations across physical, biological, and digital domains. Get Started
EIC Pathfinder: EIC Pathfinder delivers up to €3 million for Open calls and up to €4 million for Challenge-based calls to support early-stage research and development with proof-of-principle validation. The initiative requires research consortia with a minimum of 3 partners from 3 different countries, including universities, research organizations, and SMEs. Primary technology focus areas include Health/Medical, Quantum Technologies, AI, Environmental/Energy, and Advanced Materials. Get Started
EIC Accelerator: EIC Accelerator delivers flexible funding options including blended finance (€2.5M grant + €0.5M-€10M equity), grant-only (up to €2.5M), or equity-only arrangements for scale-up and market deployment of breakthrough innovations. The initiative targets SMEs, start-ups, and small mid-caps with up to 499 employees, with MedTech/Healthcare representing 35% of funded projects. Additional technology areas include Biopharma, Energy, AI, Quantum, Aerospace, Advanced Materials, and Semiconductors. Get Started
Innovation Partnership: Innovation Partnership enables collaborative innovation between public and private sectors with typical funding of €1-5 million per project. The initiative supports cross-sectoral strategic technologies through public-private partnerships and consortia. Projects concentrate on addressing societal challenges through collaborative innovation approaches. Get Started
Innovation Fund: The EU Innovation Fund delivers substantial funding of €7.5 million to €300 million for large-scale demonstration of innovative low-carbon technologies. The initiative targets clean energy, carbon capture, renewable energy, and energy storage technologies to accelerate the transition to a low-carbon economy. Eligible participants include large companies, consortia, and public entities capable of implementing large-scale demonstration projects. Get Started
Innovate UK: Innovate UK delivers various programs with funding ranging from £25K to £10M depending on the specific initiative, supporting business-led innovation, collaborative R&D, and knowledge transfer. The organization funds projects across all sectors with particular emphasis on emerging technologies and supports UK-based businesses, research organizations, and universities. Programs are designed to drive economic growth through innovation and technology commercialization. Get Started
Industrial Partnership: Industrial Partnership delivers €2-10 million in funding for industrial research and innovation partnerships focusing on manufacturing, industrial technologies, and digital transformation. The initiative supports industrial consortia and research organizations in developing collaborative solutions for industrial challenges. Projects aim to strengthen European industrial competitiveness through strategic partnerships. Get Started
Eurostars: Eurostars represents a joint EU-Eureka initiative delivering €50K-€500K for international R&D collaboration specifically led by SMEs. The program adopts a bottom-up approach, accepting projects from all technology fields without predefined thematic restrictions. R&D-performing SMEs must lead the consortium and demonstrate significant R&D activities. Get Started
LIFE Programme: The LIFE Programme delivers €1-10 million in funding for environmental protection, climate action, and nature conservation projects across the European Union. The initiative supports environmental technologies, climate adaptation strategies, and biodiversity conservation initiatives. Eligible participants include public authorities, private companies, NGOs, and research institutions working on environmental and climate challenges. Get Started
Neotec: Neotec represents a Spanish initiative delivering €250K-€1M in funding for technology-based business creation and development, supporting the growth of innovative Spanish SMEs and start-ups. The program covers all technology sectors and aims to strengthen Spain's technology ecosystem. Funding is specifically targeted at Spanish technology-based SMEs and start-ups to enhance their competitiveness and market presence. Get Started
Thematic Priorities: EU Thematic Priorities encompass various programs aligned with EU strategic priorities including green transition, digital transformation, health, and security initiatives. Funding amounts vary based on the specific program and call requirements, with projects designed to address key European challenges. Applicant eligibility varies by specific program and call, with different requirements for different thematic areas. Get Started
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