Developing a Commercial Strategy for the EIC Accelerator (SME Instrument Phase 2)

One of the core sections of an EIC Accelerator application (SME Instrument Phase 2), taken from the official grant proposal template, is the commercial strategy. Such a strategy might seem very straight forward in many cases but, in order to fully advertise the impact and scalability of a project, great care should be placed into describing its key assumptions and stakeholders.

A professional writer or consultant should assure that the commercial roadmap of the company is not solely based on completing the product developments and then to simply describe what geographical market segments will be entered but to expand on the measures taken towards scaling inside these markets.

A commercial strategy should describe a network of partners which have been carefully selected and who are imperative to reaching the target customers. As such, these partners should be well-explained inside the grant application and their main roles, as relating to the commercialisation, should be outlined clearly.

Trusting in a Startup

If a new startup or Small and Medium-Sized Enterprise (SME) is entering the market, many customers might be sceptical at first. This can especially be a factor for a B2B product because most established companies have seen many new market participants come and go over the years and are not particularly interested in making any commitments towards a company that could be out of business soon.

As a result, trust is a core factor to consider when bringing a new product to the market and the best way to build it is either through social proof (i.e. validation by trusted third parties) or an impressive track record (i.e. validation through product success). Both tend to go hand-in-hand since an impressive track record usually stems from the existence of many happy customers who, in themselves, act as third-party validations.

Social proof, on the other hand, could mean that external partners who already have a significant amount of trust are willing to invest time and money into the company which, in turn, signifies trust to other interested customers. This part is essential when building a commercial strategy since it can make the difference between slow progress and exponential growth of the product's deployment.

As a simple metaphor, there are plenty of amazing books that have never been read by more than a few hundred people while there are entirely average reads that have risen to the top and became bestsellers. A great product is of little value if its gathering dust on the shelf which is why the commercialisation has to receive as much attention as product development.

Building a Trusted Network

The ways to increase the trust customers have in the company is to consider which commercial partners hold the highest level of authority for the respective target market. A certain hardware accessory might seem less appealing if offered through a retailer as part of a larger portfolio but would be valued considerably higher if an Original Equipment Manufacturer (OEM) has taken a liking to the technology and decided to implement it directly into new products.

A new company should ask itself: Which commercial channel will build the highest level of trust with customers? Taking, as an example, a new autonomous driving technology for commercial vehicles, we can envision a hierarchy of suitable commercial strategies:

First Level: OEM

The highest level of trust would lie with OEM since they understand the customer (i.e. vehicle end-users) better than anyone and are already selling vehicles at scale. If Mercedes decides to implement a certain technology, every consumer will assume that the product is of the highest quality. The trust is already established which means that the only questions a consumer will pose are related to the product features and the pricing.

Second Level: Service

Secondary partners could be intermediaries and stakeholders who are an essential part of the value chain but are considered optional. These could be mechanics, regulators, certifiers or car renting businesses who, likewise, have a high level of consumer trust and who's opinions hold weight.

As an example from a different industry, we can imagine a customer who is operating large pipeline networks and who wants to introduce new security measures to reduce the occurrence of damages or accidents. If a consultancy or mechanic who has been hired to find an appropriate solution was to recommend a new technology as the ideal option for this case then, once again, the attention will be placed on features and pricing but not on the technology itself since trust is already established.

Third Level: Retail / Distribution

Using distributors and retailers in this scenario is still a highly valuable commercial strategy but it might significantly impede the scalability or speed of the market entry if the chosen partners do not have the trust or incentive to recommend the product. It is useful to consider what could lead to exponential growth rather than a gradual increase in sales and which strategic partners could lead to the highest envisioned market impact.

Summary

While there are a lot of factors and nuances that flow into a great commercial strategy, leveraging the trust of partner networks is a useful approach in crafting customer relationships. It can also be a good way of thinking out-of-the-box and diversifying an existing strategy with additional partners and sales channels since, in the end, it is hard to predict which avenue will see the highest growth rate and end up being the most profitable channel:

• First Level: Original Equipment Manufacturers (OEM) who directly include technology into their existing portfolio and distribute to end-users
• Second Level: Service providers who are frequently used and can add technology to their portfolio and recommend/apply it to end-users
• Third Level: Retailers and distributors with access to large customer bases

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.

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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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