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).

Risk

Risk is a difficult criterion because it is counterintuitive. It is usually best to give no more than 8 risks in a Step 2 proposal (4 technical, 4 commercial) that are rather vague but with strong mitigations. It is also best to avoid real-world risks or market risks (i.e., product-market-fit) since these will just lead to criticisms. 

From experience, risks are not realistic in grant proposals since they are like a hot potato. They must be there, but they should not be looked at for too long.

“High-risk” is also a very subjective and undefined term since it does not specify what is too high and what is too low (i.e., proper boundaries). This allows evaluators to reject applicants because of risks, which, in turn, makes applicants hide their risks better. Evaluators might suggest adding better risk mitigations, but having strong risk mitigations in place turns a high risk into a low risk.

If there is a high risk that a bridge pillar breaks, then the risk is high. If there are 5 risk-mitigation pillars around to step in at any time, then the risk becomes low. A mitigated risk is a low risk and is not a high risk.

The more transparent the applicant is regarding risks, the less likely they are to reach the interview, especially groundbreaking DeepTech businesses that create very difficult things.

High risk should not be a way of assessing the company in Step 3, but it should be replaced with other factors that are more descriptive. The Jury should not consider the risk itself but the circumstances surrounding it, especially for DeepTech:

• Is this a DeepTech company with a clear capital need? (high development costs, cannot be bootstrapped, will need more time to market)
  • Risk equivalent = Cashflow problems, ongoing investor reliance.
• Is there a race between just a small number of competitors trying to be the category winner?
  • Risk equivalent = Betting on the right one or maybe the only European option. Intense pressure from an incumbent with much more capital and reach.
• Does Europe lack the ecosystem to nurture successes? (lacking manufacturing, technology, infrastructure)
  • Risk equivalent = Even if the company has perfect execution and superior technology, the lack of an ecosystem might be a risk that can lead to failure. Examples are the lack of compute (AI superclusters, datacenters), high electricity costs, semiconductor fabs, GMP MedTech manufacturers, etc.
• Is the value chain not existing yet?
  • Risk equivalent = Even with a great product and pricing, there might be technical limitations to scaling. An example is the second-life battery value chain or recycling, where the value proposition is clear, but the value chain for collecting end-of-life materials and the quality control might not be there yet.

There are more examples, but these are very realistic circumstances that the EIC should consider more than the idea of high risks. There is no need to view technology developments or scaling as risky. DeepTech brings certain risks along with it, so the requirement to look for high risks is unnecessary.

The examples above are also all risks that should be funded since they are DeepTech aligned and of clear EU interest. Other risks, like the potential for benchmarks not being reached, integrations failing, etc., are too generic and can happen to any company. It should not be a way for a non-DeepTech company to sell itself as high-risk, since this is not aligned with the EIC's goals.

Jury Members and Domain Expertise

Airbnb has a simple feature after a stay: Rate the accommodation publicly through a review (i.e., the ESR) and then send a non-public message to your host. The EIC could use the same approach. The ESR is sent to applicants, and then a short list of questions by the Step 2 evaluators is sent to the Jury members.

Since not all Step 2 applicants will make it to the jury, every Step 2 evaluator should simply add 1 or 2 questions just in case.

Why this could make sense: The Step 2 evaluators usually have some type of domain expertise and can easily come up with 1 or 2 good questions in less than a minute. The jury (maybe) lacks domain expertise but has enough judgment to ask a technical question and then see how the interviewee will respond.

It is a simple and low-cost addition that could solve a few problems for the jury at once.

Equity Adjustments

The EIC Accelerator (formerly SME Instrument) has offered €2.5 million grants for over ten years, and the limit has not increased despite substantial inflation during that time. As a likely consequence, most companies aim for the maximum grant amount (about €2.3 million on average per winner), and it is reasonable that the jury is not allowed to change this amount since they could only reduce it.

Regarding the EIC Fund equity, the situation is different, and it would be preferable if the jury could change the amounts for a variety of reasons. Companies might reach the interview without being aware of the crowd-in factor, the co-investor requirements, the EU interests, or they might have made more progress in their fundraising efforts since submission. Instead of being outright rejected due to an unfitting equity amount, the jury (or EIB representative) should have the power to adjust the equity amount during or after the interview.

Why is this necessary? The grant funding has no strings attached, and the diligence process is straightforward. The equity funding is complicated.

It has a crowd-in factor, different tranches, negotiations, coordination with lead investors, and, most importantly, policy goals (i.e., strategic control, board seats). It makes sense to allow the EIC Jury or EIB representatives to adjust the equity to fit their needs, since that is what the EIB will do later on anyway.

It is also often advisable for EIC Accelerator applicants to request less equity because of these points. A company should not be rejected because of the equity amount, and the EIC should be able to reduce or increase it to fit their mission and budget.

Even today, the general rule for EIC Accelerator applicants is: If you ask for a grant, you will get the exact grant amount you requested. If you ask for equity, let’s see what you will get and when.

The EIC Fund already uses tranches, which means that the total amount that has been approved will likely be split into different funding rounds, while they also have a flexibility amount that allows them to change the equity amount later on. Since the EIC Fund and the EIB advisors will be able to make changes later on anyway, it would be in the interest of applicants to allow the EIC Jury to do the same in the earlier stages if the alternative would be a rejection due to technicalities.

Based on experience, applicants are generally confused about equity requests and amounts anyway, with most of their focus being on the grant component.

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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