How the EIC Can Incentivise Shorter and Clearer Applications for the EIC Accelerator (SME Instrument Phase 2) - Part 4

Information for readers: The following is a description of a proposed evaluation process but it does not, in any way, reflect the current way EIC Accelerator applications are evaluated. For this, please read this article.

This article is a continuation of Part 3 which is preceded by Part 1 and Part 2. It describes a proposed evaluation process for the EIC Accelerator blended financing (formerly SME Instrument Phase 2, grant and equity financing) and investigates the potential mechanisms that can be used by the European Innovation Council (EIC) and European Commission (EC). The way an official proposal template is structured and its general restrictions clearly define the workload of both successful applicants and evaluators which makes a re-structuring the most powerful tool available to change the overall submission experience for all stakeholders from the written application, over the pitch video to the final interview (read: Pitch Deck vs. Proposal).

Round 2 (Commercial & Financial Assessment)

Applicants are informed of their proposal evaluation and receive their first feedback. The applicants that have passed all 2 steps of the internal evaluation (i.e. 1-1b) are invited to provide a business plan focusing on their work packages, financials, team, metrics, go-to-market strategy, partner description, value-chain and revenue expectations. At this point, the EU policies, the product explanation, the past accomplishments, the environmental impact and similar parts do not need to be addressed further and the proposal will be fully dedicated to commercial aspects.

This round, again, follows a knock-out approach whereas the best out of 3 business plans will be able to move to the final assessment round. One major difference form the normal EIC Accelerator remote evaluations is that the pool of evaluators consists of angel investors, VC's and successful entrepreneurs. This group of evaluators must have been specifically vetted and verified before allowing their participation since their assessment of a realistic business plan must be sound and held to the same level of quality as in the following pitch interview.

Since the feedback cumulates, each applicant now has a very useful resource to further improve their project (i.e. up to 3 sets of feedback from the evaluation rounds 1, 1b and 2).

Result: 3.7% or 222 of applicants are selected.

Round 3 (Pitch Interview)

Just like the EIC Accelerator in 2018-2020, a pitch interview either in-person or via a video call is held to further select the applicants and to identify the companies who will receive the financing.

Result: 100 applicants or 1.7% are selected by the jurors for the respective funding.

Benefits & Problems of this Approach

As with all bulk evaluation processes, the proposed methodology likewise has flaws that can lead to problems or unfair situations but these issues are expected to be on the same level as any other previously implemented procedure.

• Applicants can successfully apply alone even with no in-house grant writers or experience
• The effort of preparing the application rises with the chance for success (not vice versa)
• Evaluators can quickly compare applications rather than grading each one individually
• Internal knock-out rounds can be repeated in case of high application volumes
• Business plans are only evaluated by commercials experts while random evaluators can be used for the bulk pre-screening in Round 1 to assure EU policy-alignment
• Excellent feedback is provided to all applicants for each of the evaluation steps in a cumulative manner

Con

• Unfair matchups could lead to excellent projects being knocked-out in early rounds (Mitigation: Allowing multiple YES or all NO gradings)
• Re-submissions might be viewed less favourably by evaluators and could always be knocked-out (Mitigation: Do not disclose to evaluators if a project is re-submitted and do not choose the same evaluators)
• The first level of screening in Round 1 could incentivise projects with poor business models to pass through which reduced the quality of projects overall (Mitigation: Abbreviated commercial aspects should be part of the executive summary and the submission forms)

Conclusion

The described evaluation process for the EIC Accelerator is a proposed method for the quick screening of large numbers of applications and presents tools (i.e. elimination rounds, different evaluator-pools, short applications) to allow a direct project comparison instead of relying on complicated scoring systems. It also fixes the issue of potentially having non-commercial experts evaluate financial metrics and business plans which can be funnelled to a specialised pool of evaluators.

The most important aspect of this system is that the difficulty of the applicant's effort increases gradually (i.e. step 1 is easy while step 2 and step 3 are difficult) without the risk of having to put extensive work into an application without even meeting the minimum success criteria. Depending on how well the EIC vets the respective experts in Step 2, the quality of the interview attendees is expected to be higher and immediate dismissals of participants could easily be avoided.

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

Any more questions? View the Frequently Asked Questions (FAQ) section.

Want to see all articles? They can be found here.

For Updates: Join this Newsletter!