Assessing an EIC Accelerator Applicant for Innovation, Traction and the Team (SME Instrument) - Part 2

Part 1 (Innovation) of this article can be found under the provided link.

2. Traction

The suitability of a project for an EIC Accelerator grant or blended financing application (SME Instrument Phase 2, with equity option) can be difficult to assess even for professional writers or high-level consultants. For this reason, an in-depth investigation of the innovation, traction and team is a must before any work is done towards the preparation and submission of a successful grant proposal.

Even the most seasoned writers and consultants discover new aspects of the project and potential hurdles for the evaluation process during the writing itself which, in most cases, is unavoidable.  This is due to the high information-density required of such an application and its inevitable reliance on the pro-active cooperation of the startup and the quality of information that is provided.

Often, consultancies prefer to charge the prospect applicants for a multi-day workshop in order to deeply assess the company and its suitability for the EIC Accelerator first but such an approach can be too lengthy and does not necessarily make financial sense for startups since writing, editing, submitting and re-submitting can often be covered instead.

In this second part of the EIC Accelerator assessment guide, the focus is placed on the principle of traction which is related to the customers of an innovation and its immediate industry demand. The purpose of evaluating a projects traction is to further validate the market need and, in turn, the market potential of the respective product or service.

Without traction, i.e. customer demand, there would be no revenues and no commercialisation or scaling to speak of. The core sub-criteria that can be used in order to evaluate the traction of a project can be classified into:

2.1 Surveys and Customer Contact

At the very least, a startup or Small- and Medium-Sized Enterprise (SME) should be in communication with their future customers via professional networks, formal surveys or other types of access such as workshops, industry events (i.e. conferences and fairs) and work relationships.

An innovation project without at least that type of traction is extremely difficult to validate since there is no justifiable way of underlining the customer need without communication with the customer. Every startup that has an innovation but no proof of its need has to work on this first before applying to the EIC Accelerator since the evaluation will place a strong focus on this aspect (i.e. customer interest is an explicit part of the proposal template).

2.2 Pilot Tests and Existing Value Chain

An improved customer validation comes in the form of pilot tests where the current TRL6 prototype (i.e. see Technology Readiness Levels - TRL) is already tested in the relevant environment on the customer's premises or in real-life operations.

Pilot studies are very common amongst EIC Accelerator applicants since it is usually a pre-requisite for product developments and is a core factor of raising a project above the concept stage and into a commercial product. For Business to Consumer (B2C) products, pilot tests can also be justified through active users on a platform or any relevant data derived from user-interaction with the technology.

The core takeaway of this aspect of justifying the project's traction is the acceptance by the targeted user group and the usefulness in addressing the customer pain point. As such, a pilot study has to deliver tangible data derived from a careful efficiency, cost and benefit analysis that underlines the projects innovation, value-for-money and ease-of-use.

The same reasoning can be applied to the network of adjacent stakeholders in the value-chain which have been gathered and secured in order to reach customers and streamline the commercialisation process. Such third-party validations can also be helpful since these can act as multipliers and are intimately familiar with customer needs and their pain points. Distributors, retailers and industry opinion leaders can be powerful additions to the validation of the project and should be assessed before applying to the EIC Accelerator.

2.3 Paying Customers and Letters of Intent (LOI)

Outside of simple customer contact and the first pilot tests, the most powerful validation in the eyes of investors are, of course, paying customers and those with strong interest. Signed contracts and LOI's are a great way of demonstrating traction and can easily satisfy the evaluators while making the commercial strategy and customer profile much more plausible.

Of course, care should be placed into clarifying that, even though customers are secured, the project is still in its prototype stage and that financing by the European Innovation Council (EIC) is still required to fully realize the products potential. Non-bankability (see Buzzwords for the EIC) is still an important criterion to be aware of and the financial status and traction of the applicant should not be overstated by the consultant or a professional grant writer.

Summary

In summary, the traction of an EIC Accelerator applicant can be broadly classified into three main segments, namely:

• 2.1 Surveys and Customer Contact
• 2.2 Pilot Tests and Value Chain
• 2.3 Paying Customers and Letters of Intent (LOI)

Part 3 (Team) of this article can be found under the provided link.

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.

Contact: You can reach out to us via this contact form to work with a professional consultant.

AI Grant Writer: ChatEIC is a fully automated EIC Accelerator grant proposal writer: Get it here.

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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