Frequently Asked Questions

Be aware of potential delays in equity payments, the ongoing scrutiny during the due diligence process, and the EIC's preference to invest in existing or planned financing rounds. Also, understand that the EIC can potentially pull funds at any time if your company no longer meets their criteria.

The main issues revolve around delays in receiving the equity payments and a lack of clear communication from the EIC. Companies have experienced long waiting times for their initial equity payments, and some feel the EIC's requirement to find other investors first wasn't clearly communicated initially.

The grant funding is generally faster, often provided within a couple of months. Equity financing, on the other hand, requires a more extensive due diligence process, which can take 6-12 months. This is because the European Commission is relatively new to equity investing and needs to conduct thorough checks.

The EIC Fund may invest through a convertible note, typically covering around 50% of the agreed-upon equity amount. The exact amount depends on their assessment of your company's financial needs after due diligence. This allows them to provide some funding even without an ongoing round.

Yes, the EIC can reduce or even cancel the equity financing after the award. This can happen if the due diligence process reveals that the beneficiary no longer meets their investment criteria. It's important to maintain transparency and ensure your company continues to align with their requirements.

The EIC Fund typically invests in companies as part of a larger financing round with other investors. This means you need to be actively planning or participating in a financing round to receive the equity investment. If no round is planned, the EIC might invest through a convertible note, usually around 50% of the agreed-upon equity.

No, having non-EU investors participate in your financing round will not negatively impact the EIC's equity investment. The EIC Fund is open to co-investing with investors from outside the European Union. Their primary focus is on supporting innovative European companies.

Include a detailed feasibility assessment from a commercial and financial point of view. Key factors to validate are customer demand, willingness-to-pay, expected margins, and a general analysis of the opportunity. This section can significantly enhance the quality of your application.

The absence of Phase 1 shouldn't lead to neglecting key elements that made Phase 1 successful. Conducting thorough feasibility studies, validating your project technically and commercially, and crafting a well-aligned proposal narrative are crucial. These steps will significantly improve your chances of success.

Yes, evaluators may have a bias towards projects that have successfully completed Phase 1. This is because completing Phase 1 demonstrates that the applicant has already succeeded in a competitive process. It also shows they have fulfilled stringent documentation responsibilities.

Don't rush the creation and budgeting of work packages. Define your development work clearly and make the implementation believable. Use information on the project's future, required developments, and budgets to inform your EIC Accelerator application.

Pilot studies provided a comprehensive description of the project's feasibility. The Phase 1 report included documentation on technical feasibility, test results, and use-case descriptions. This in-depth elaboration on pilot tests was a contributing factor to the increased success rates in Phase 2.

Statistics showed that completing a Phase 1 project significantly increased the chances of receiving Phase 2 funding. The success rate for Phase 2 applications was 6.8% for those who completed Phase 1, compared to only 4.1% for those without prior Phase 1 funding. This represents a substantial 65% increase in success probability.

The SME Instrument Phase 1 was a seed grant of €50,000 that allowed early-stage startups to conduct a feasibility study. This study helped analyze the validity of their innovation and business model. It also served as a foundation for preparing the more complex EIC Accelerator proposal by requiring market studies and a business plan.

You can find some documentation on the now obsolete Phase 1 process in the official template for the feasibility study and the Grant Agreement Contract (GAC). These documents can provide insights into the types of information that were previously required.

Ensure the narrative of your proposal is strong and that your vision aligns with the expected impact, innovation, and project itself. Refine and align key cornerstones of your application, such as Freedom to Operate, timing, and Key Performance Indicators. Pay attention to detail in every section.

Even without Phase 1, you can conduct a feasibility study or pilot project independently. This can be funded through other sources or done directly with customers. Prioritize describing past milestones, R&D results, and technical, commercial, and financial information to validate your project.

A pitch voice-over video involves recording a pitch session using your existing pitch deck. You can use video call software like Zoom or Skype and share your screen while presenting. This approach is simple and requires minimal specialized skills, making it a good option for many companies.

A mix of different video types is highly advisable. Combining interviews, hardware footage, and animations can create a professional-looking and easy-to-digest introduction for your innovation. Focus on clear communication and showcasing the key aspects of your project.

You can create explainer videos, interview-type videos, hardware footage videos, pitch deck recordings, or use existing footage. A mix of different video types is highly recommended to create a professional and engaging introduction to your project.

Consider outsourcing if you lack the skills or time for in-house production. You can outsource animation, voice-overs, or video editing. If you're confident in your filming skills, you can save money by preparing the footage yourself and only outsourcing the editing.

The tools you need depend on the type of video you're creating. Generally, you'll need a microphone, a DSLR or smartphone for filming, and video editing software like Adobe Premiere Pro. For explainer videos, you'll also need animation software like Adobe After Effects or free alternatives.

Yes, if your company has been featured in news, TV, or online outlets, you can use that footage. Download the publicly available material and re-edit it to create a short profile of your project and team. This can be a quick way to produce a professional-looking video.

If your product is hardware-heavy and your Technology Readiness Level (TRL) milestones have focused on hardware, include footage of production processes, factories, and the hardware itself. This helps illustrate the function of your innovation and provides tangible evidence of your progress.

Interview-type videos involve filming founders answering questions about the innovation, team, and business model. Prepare questions in advance, choose a bright and pleasant location, and ensure good lighting and backdrop. Edit the footage to remove the questions and focus on clear, concise explanations.

Explainer videos use animations and voice-overs to tell the story of your project. You can create one by planning the video's outline, writing a script, and choosing a visual style. While in-house production can be challenging, free animation tools are available, and you can outsource animation and voice-over work.

EIC Accelerator video pitches are short videos that companies applying for EIC Accelerator funding are expected to create. They serve as an introduction to your project and team, giving the evaluators a quick and engaging overview. These videos are important because they can significantly impact the first impression and help your application stand out.

If you can clearly explain why you achieved a technology milestone or developed a feature that others haven't, and if it's due to a technical innovation or complexity, it's likely unique. Avoid vague answers like "no one has tried it yet," as this doesn't demonstrate a strong USP.

The EIC Accelerator, funded by the European Innovation Council (EIC) and European Commission (EC), targets high-risk startups and SMEs with significant commercial potential. It offers substantial funding, up to €17.5 million per project, through a combination of grants and equity. This funding is designed to support scale-up activities for innovative ventures.

Begin by listing 1-5 unique technological features that represent the core innovation of your product or service. Focus on aspects that differentiate you from current market alternatives. These could be unique hardware mechanisms, software features, or any other distinctive capability your technology possesses.

If you struggle to answer the questions about a particular feature, it likely isn't a strong USP for the EIC Accelerator. Focus on the features where you can clearly articulate the unique benefits and value proposition. A single strong feature can sometimes lead to multiple USPs.

Evaluators want to know if your innovation can be protected and capitalized upon. Identify the conditions under which competitors could copy your solution, including the time, resources, and potential IP barriers involved. This demonstrates the defensibility of your competitive advantage.

Use a pilot customer or imaginary customer as an example to illustrate the impact of your technology. Show how your product reduces production time, costs, or improves efficiency. Translate these improvements into tangible financial benefits or other measurable outcomes for the customer.

IP protection is very important, especially for DeepTech companies with long development cycles. Determine if your features are patentable globally. If not, outline how you'll protect your IP in-house. A clear IP protection strategy is crucial for demonstrating the long-term viability of your business model.

Identifying USPs is crucial because the EIC Accelerator proposal specifically assesses the commercial impact of your technology. Clearly defined USPs demonstrate the unique value your product or service offers compared to existing market solutions. This is a key factor in convincing evaluators of your project's potential for success and return on investment.

For each technological feature, consider these questions: Why does your technology have this feature but not others? Is it hard to copy? Is it patentable? How do you quantify the benefit per unit? What does this benefit mean for your customer? Answering these questions will help you assess the true uniqueness and value of each feature.

Quantifications are essential for demonstrating the value of your technology. You need to quantify the business model, the technology benefit, customer interest, and product-market fit. Without quantification, your application will lack concrete evidence and rely solely on storytelling.

One way to improve transparency is to increase the visibility of freelance writers. This would allow startups to connect directly with experienced writers, potentially leading to closer client relationships and more dedicated project support. This direct interaction could foster a better understanding of the proposal writing process.

Freelancers have the freedom to decline projects that don't align with their expertise or interests. They might also decline if they believe the startup lacks the prerequisites for a successful application. This allows them to focus on projects with a higher chance of success and manage their time effectively.

Full-time consultants often focus on managing and editing proposals rather than writing them from scratch. They provide strategic guidance, ensure quality control, and manage client relationships. Their expertise is crucial for navigating the complex requirements of the EIC Accelerator program.

The EIC Accelerator is constantly evolving, with changes to proposal templates, evaluation processes, and eligibility requirements. Freelancers need to stay updated on these changes, which requires time and effort. The uncertainty and fluctuating demands of the industry can make collaboration with a consultancy more appealing for the sake of stability.

Freelancing offers writers freedom and flexibility in their work. They can choose projects that align with their expertise and decline those that don't. This allows them to control their workload, build diverse revenue streams, and avoid the constraints of traditional office environments.

Freelance writers can increase their visibility by networking, showcasing their expertise, and building a strong online presence. They can also consider joining freelancer databases or platforms that connect them with potential clients. Proactively marketing their services and building relationships with consultancies can also help.

SMEs should understand that consultancies often outsource writing tasks to freelancers. While you might expect to work with a single point of contact, the actual writing may be done by an external expert. This allows the consultancy to leverage specialized skills and manage its workload effectively.

Freelance writers should focus on going beyond the minimum requirements of each project. They should be dedicated to the client's goals and work to improve the proposal's overall evaluation. Developing strong communication and strategic thinking skills is also crucial for success.

Freelancers often lack visibility in the industry and may struggle to attract clients directly. They may also be inexperienced in contract negotiation and client assessment. Additionally, they might rely on senior consultants for editorial support and lack the resources for marketing and administrative tasks.

Consultancies use freelancers to increase their capacity and access a diverse pool of expertise. It's often more economical to hire freelancers for writing tasks, allowing full-time employees to focus on management and editing. This system allows consultancies to handle a larger volume of applications without rejecting projects due to a lack of internal resources.

The EIC Accelerator tends to fund projects in specific industries more frequently. The top-funded industries include Health, Energy, IT software, Transportation, and Food. If your company operates in one of these sectors, it might align well with the EIC Accelerator's funding priorities.

EIC Accelerator-awarded companies have been successful in attracting significant follow-up funding. They've secured a total of €5.3 billion through private investments and other channels like equity, debt, mergers, acquisitions, and IPOs. Equity investments make up the majority of this follow-up funding, accounting for approximately €4 billion (74%).

The EIC budget has increased from €3 billion under Horizon 2020 (2018-2020) to €10 billion for Horizon Europe (2021-2027). This translates to an increase from an average of €1 billion per year to €1.42 billion per year, representing a 42% increase. This substantial increase indicates a stronger commitment to innovation and deep tech within the EU.