The EIC Accelerator funding (grant and equity, with blended financing option) by the European Commission (EC) and European Innovation Council (EIC) awards up to €2.5 million in grant and €10 million in equity financing per project (€12.5 million total) and is designed for startups and Small- and Medium-Sized Enterprises (SME), often supported by professional writers, freelancers or consultants.

This article is part of a series that contains suggestions for the EIC and the EIC Board regarding various improvements to the evaluation process (see ChatEIC).

Interview Update

There are a few issues with the time gap between the Step 2 submission and the Step 3 interviews. Pitch decks and financials are often outdated. It is also cumbersome to update an entire proposal between two deadlines after a Step 2 or 3 rejection, which means that much of the proposal might be outdated since busy companies did not bother to revise most sections before resubmitting (i.e., workpackages or team).

This is especially true for scaleups that move fast and where workpackages would need to be revised every month.

A minimum fix should be a simple update questionnaire of just half a page to be filled out 7 days before the interview. It can then be printed out for the jury members as well, so that they can use it during the interview. Here are suggestions for this short questionnaire:

• Declaration: “I understand that misrepresenting the details below will make me ineligible to receive EIC funding of any kind, irrespective of evaluation results or interview performance.”

• Disclose the following as concisely as possible:

• • What is your monthly burnrate in euros as of last month?
  • What is your total cash balance in euros as of last month?
  • What is your total debt in euros as of last month?
  • What is your FTE count as of today?
  • Have there been any changes in company structure, ownership (including cap table), office/laboratory/workshop/factory address that are not represented in the Step 2 proposal?
  • Does your company have a parent organization? If yes, in which country?
  • Does your company plan to restructure under a parent organization in another country?
  • Does your company have or plan to have subsidiaries in another country?
  • How much ownership does the team actively working in the company hold in aggregate today? Express the number as a single percentage (i.e., 60%).
  • Are there any legal proceedings involving your company in any way that are active today, have recently concluded, or that are being anticipated in the near future (i.e., lawsuits, bankruptcy proceedings, legal probes, audits, etc.)?
  • Describe your current fundraising efforts and any funding raised that is not disclosed in the proposal by naming:
    • All investors you are in discussions with.
    • Your current valuation target.
    • Your current investment target.
    • The due diligence status.
    • Termsheet status.
  • What are your Year-on-Year revenues from last month backwards?
  • Are you in active discussions regarding a potential merger, acquisition, SPAC, or IPO as of today?
  • Have any other notable milestones been achieved (new customers, partners, technology benchmarks, etc.)?

These questions also serve the purpose of the probing usually done by the EIB representatives. If they are not present, the jury will always be able to probe these aspects regardless. Adding this update list can solve a few problems at once for the jury, since any red flags will be obvious immediately.

Important: Many (or most) EIC Accelerator winners raise funding during the application process because of the long waiting periods and common rejections. Being in a due diligence process and having signed a termsheet should not be a rejection reason even if the funding round is substantial. But there could be a threshold.

Is a €150 million round too high? It could be, but it will depend on the goals of the EIC Board. There could be a hard threshold like €100 million or €50 million, but it might be better to leave the decision up to the Jury.

EIC STEP Scale-Up Fasttrack

Another option could be to give the jury the ability to invite this company straight to the STEP Scale-Up interviews after rejecting them if they have raised an excessive amount of funding, but are deemed to be of strategic importance.

They might not need the grant, but the EIC might want to invest equity regardless, so this could be a great solution. If they are currently closing a €100 million round, then the EIC can reject them but invest with the EIC Fund via the STEP Scale-Up in their next round without making them reapply (i.e., straight to the interview or skipping the interview entirely: STEP Fasttrack).

While STEP is designed for strategically important technologies, it could simply be the catch-all for anything the EIC deems to be of strategic importance, irrespective of the technology.

Disclosing fundraising to the jury might significantly change the outcomes of upcoming interviews since it could reveal that all the “good” companies are raising money despite the EIC, so this needs to be looked at carefully.

Based on experience, the question “Can you succeed without the EIC?” should be answered with a “yes” for the EIC to find a company attractive. Jury members have to be trained not to reject companies that are signing termsheets on the day of the interview, but to simply consider the amount of the funding and the strategic position of the EIC.

If the Jury wants to fund a company that has recently raised or is about to raise private capital, then they can simply follow this logic:

• Is a grant still life-changing for this company despite the equity raise?
  • Yes, if below the funding size threshold: The company is eligible for a grant.
  • No, if above the funding size threshold: The company is ineligible for a grant.
• Is there a strategic reason for the EIC Fund to invest?
  • Yes, and the funding size is below the threshold: The company can be funded through blended finance under the EIC Accelerator.
  • Yes, but the funding size is above the threshold: The company can be fast-tracked to the STEP Scale-Up call for a pure equity investment that also better aligns with larger rounds.

Regarding the runway of the company, this should be assessed against their funding plans (loans, bridge round, etc.) and not be seen as a definite bankruptcy date.

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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