The Risk of Presenting all Risks in the High-Risk EIC Accelerator Program

High-Risk Businesses

The EIC Accelerator grant financing (with blended equity option) by the European Commission (EC) awards up to €2.5 million in grant and €15 million in equity financing per project (€17.5 million total). It is targeting high-risk projects as defined in the EIC Work Programme and strongly advertised by the European Innovation Council (EIC) in its communications and marketing:

“...And the ‘EIC Accelerator’ for individual companies to develop and scale up breakthrough innovations with high risk and high impact.”

This preference is likewise reflected in the EIC Accelerator’s Step 2 proposal template where a large section is dedicated to risks, probability assessments, impacts and mitigation strategies. The remote evaluators will analyze and assess this section carefully and provide grades according to the following criteria (see Work Programme):

“Have the main risks (e.g. technological, market, financial, regulatory) been identified, together with measures to take to mitigate them?”

“Does the nature and level of risk of the investment in your innovation mean that European market actors are unwilling to commit the full amount alone?”

It is therefore essential to present key risks in the proposal template and, if risks are presented in an insufficient manner for financial, commercial and technical areas, the project will likely receive a poor score for this aspect.

Risking Rejection

One of the downsides of using thousands of remote evaluators in Step 2 of the EIC Accelerator application process in combination with a unanimous approval process to pass this step is that a single critical evaluation will lead to rejection. Since each evaluator has their own unique background with an uncertain degree of knowledge on the project's subject matter, the risk section can attract unwanted scrutiny.

This is aggravated by the freezing periods introduced by the EIC which limits project applicants to only two rejections in Step 2 and greatly increases the stakes of a single critical evaluation (see Resubmissions).

Additionally, the EIC Accelerator Step 3 jury is very risk-averse and aims to make traditional investment decisions (i.e. low-risk, high-reward) for the companies available to them through the Step 1 and Step 2 evaluation process (see Breaking the Rules).

When it comes to the EIC Accelerator, it is therefore prudent to be just risky enough to pass Step 1 and Step 2 but not too risky to pass Step 3, especially in terms of commercial and financial risks.

Presenting Risk

While all sections in the EIC Accelerator Step 1 or Step 2 application generally benefit from more content and more text, the risk section is unique since it is detrimental to either introduce too much or too little content.

If a company neglects to introduce financial, commercial or technical risks, the project's evaluation can conclude that it is out of scope for the high-risk EIC Accelerator program in Steps 1 and 2. It is likewise possible for evaluators to criticize that obvious risks have been neglected in the application.

If a company introduces too many risks, even with thoughtful mitigation strategies, the evaluators can criticize the level of risk management and the capability of mitigating these risks - justified or not.

It is therefore advisable for startups and Small- and Medium-Sized Enterprises (SME) as well as professional writers, freelancers or consultants to add essential risks for each project aspect (i.e. commercial, financial, technical) but to be conservative. It is beneficial to not maximize the presentation of possible risks in the same way development, market or technology sections are maximized since it provides an unnecessary attack surface for criticism in the evaluation.

In some cases, it can even be advisable to remove risks presented in the EIC Accelerator's Step 1 when preparing the Step 2 documents if they have led evaluators to be overly critical without providing any substantial feedback or reason for their criticism (i.e. "that is too risky"). Such changes often go unnoticed.

Conclusion

This is a major flaw in the application process since it forces applicants to be less transparent and under-present their risks even though the EIC Accelerator should welcome high-risk projects with suitable mitigation strategies.

Interestingly, the EIC and EC representatives can even ask beneficiaries that have successfully passed all evaluation steps to introduce additional risks to project documents to be better aligned with the  EIC Accelerator program even though the funding decision has already been made.

Such sleight of hand illustrates that there could be a mismatch between the EIC's funding rules and the application's incentives.

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.

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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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