The EIC’s One-Stop Shop Funding Framework (Pathfinder, Transition, Accelerator)

The European Innovation Council (EIC) has matured into a full innovation ecosystem for startups and Small- and Medium-Sized Enterprises (SME), often supported by professional writers, freelancers or consultants.

Today, the EIC has three flagship, non-dilutive funding programs for companies at all stages of development. These are the EIC Pathfinder, EIC Transition and EIC Accelerator which are designed to bring technologies from Technology Readiness Level (TRL) 1 to 9 (see TRL 2023).

The programs are supposed to create a gap-free pathway for companies to access financing independent of their current stage of development or their industry. This comprehensive framework developed by the EIC is designed to commercialize breakthrough science and innovation and to develop excellent businesses that are otherwise struggling to raise private financing in Europe.

EIC Pathfinder

For early-stage ideas, concepts or scientific breakthroughs, the EIC Pathfinder program funds innovation activities from TRL1 to TRL4. Often, such projects are University or research institute spin-offs or projects from scientific departments of companies.

Since the technology is in the early stages, the main criteria for the evaluation focus on scientific and technological excellence rather than commercial traction which renders a strong research component essential. The EIC lists the following core criteria for access to EIC Pathfinder grants of up to €3 million:

• Convincing long-term vision of a radically new technology that has the potential to have a transformative positive effect to our economy and society.
• Concrete, novel and ambitious science-towards-technology breakthrough, providing advancement towards the envisioned technology.
• High-risk/high-gain research approach and methodology, with concrete and plausible objectives.

In 2023, the EIC Pathfinder’s budget amounts to €179.50 million for the Open and €163.50 million for the Challenge Call, each with a single available cut-off (see 2023 EIC Budget). This accounts for 21% of the total funding distributed between the EIC Pathfinder, EIC Transition and EIC Accelerator programs.

EIC Transition

For companies that have already performed extensive validations but are yet to reach an active or testable prototype, the EIC Transition program can bridge the gap of developing a Minimal Viable Product (MVP). It is restricted to projects that build on past funding programs such as the EIC Pathfinder or the European Defence Fund.

EIC Transition is designed to bring companies from TRL4 to TRL5-6 which allows early-stage companies to build and validate product prototypes and become eligible for scale-up financing. The EIC presents the following questions to assess the eligibility of applicants:

• Is this novel technology ready for the next steps toward its maturation and validation in some specific, high-potential applications?
• Have you performed early exploration of potential markets for your innovation as well as potential competitors?
• Do you envisage building a motivated and entrepreneurial team to develop and drive the idea toward commercialization?

In 2023, the EIC Transition’s budget is €67.86 million for the Open and €60.5 million for the Challenge Call with 2 cut-offs each and grants of up to €2.5 million per project. This accounts for only 8% of the total funding distributed between the EIC Pathfinder, EIC Transition and EIC Accelerator programs.

EIC Accelerator

The EIC Accelerator is the largest funding program among the three financing options and is providing the highest financial contributions to companies starting at TRL5-6. It has multiple funding options while also combining non-dilutive and dilutive funding mechanisms with grants of up to €2.5 million and equity injections of up to €15 million.

Non-Dilutive Grants

Its non-dilutive grants options are “grant-only” and “grant-first” which can be selected based on the applicant's financing needs as well as certain geographic restrictions (i.e. the UK is only eligible for grant-only applications).

Grant-first applications are designed for companies that aim to reach TRL8 but have not secured or fully planned the scale-up financing and pathway to reaching TRL9. This format is especially useful for companies that are in the early stage, lack secure commercial traction or still require extensive technology validation or clinical trials.

A frequent occurrence in past EIC Accelerator cut-offs has also been a conversion of “blended financing” applications (see below) into “grant-first” applications since the EIC Accelerators Step 3 jury deemed the project to be too risky for immediate equity injections (see Step 3 Interviews).

Grant-first applications that have been financed successfully will have the option to apply for equity financing at a later stage through a special financing pathway (see Grant-First Work Programme). It therefore can be seen as similar to the “blended finance” model but with a postponed equity injection.

Grant-only applications are pure grant’s that are available to companies that do not need equity injections from the EIC Fund or are not eligible to receive them. While the EIC’s grant funding supports activities up to TRL8, such companies have to demonstrate that they have available follow-up financing to reach TRL9 without the EIC Fund’s support.

Dilutive Equity Injections

The EIC Accelerator’s dilutive funding options are “equity-only” and “blended financing” whereas the former is equivalent to a standard Venture Capital-type investment in exchange for company equity while the latter is a combination of equity and a non-dilutive grant.

Blended financing has become the most popular funding modality of the EIC Accelerator since it conveniently allows companies to de-risk their technological developments via grant funding and then create an additional safety net for outside investors by onboarding the EIC Fund as a co-investor.

The blended financing option foresees that the EIC Fund is acting as a participant in a financing round, thereby encouraging external investors to proceed with investments and supporting the applicants in raising a larger financing round.

In 2023, the EIC Accelerator’s budget is €611.75 million for the Open and €523.49 million for the Challenge Call with 4 and 3 cut-offs, respectively (see Updated Deadlines). This accounts for 71% of the total funding distributed between the EIC Pathfinder, EIC Transition and EIC Accelerator programs.

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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