Frequently Asked Questions

The EIC Fund has faced challenges, including confusion among beneficiaries and delays in the issuance of funds. Many companies are still waiting to receive their equity investments, and structural changes to the fund, such as handing it over to the European Investment Bank (EIB), may cause further delays.

The EIC Accelerator uses a multi-step evaluation process with subjective assessments and conflicting criteria. Final investment decisions are made based on a short interview, followed by months of due diligence. This is unusual in the investment industry, where due diligence typically precedes investment decisions.

Yes, there is a preference for companies within a specific age range, with the majority of funded businesses being 6-10 years old. This may be because older, established businesses are less incentivized to innovate, while younger startups are often more likely to disrupt industries with groundbreaking technologies.

The EIC Fund is an investment vehicle created by the European Innovation Council (EIC) to invest in high-risk, high-potential startups in their early stages. It provides larger funding amounts and closer relationships with companies through ownership stakes, due diligence, and board seats. The goal is to support deep tech startups that can scale in global markets and address societal challenges.

The EIC sometimes highlights companies as success stories (unicorns, centaurs) that may have already achieved significant valuations before receiving EIC funding. This raises questions about the EIC's actual role in their growth. A thorough investigation of the EIC’s impact on these companies is warranted to determine the true extent of its contribution.

The average duration from application to grant for the EIC Accelerator is around 300 days (10 months). This suggests that many applicants face rejections during the process. The timeline can vary depending on whether the project is rejected and resubmitted or if there are delays from the EIC side.

The EIC Accelerator program offers grants and venture financing to startups and SMEs, with up to €2.5 million in grants and €15 million in venture financing available. It aims to support high-risk, high-potential companies, particularly those in DeepTech sectors, to scale their innovations and address societal challenges.

The higher success rates for grant-first projects may be due to the EIC converting some blended financing applicants into grant-first applicants. This conversion process wasn't officially acknowledged, but it likely contributed to the increased success rate of grant-first applications.

Declining the EIC Fund investment, particularly if the due diligence process is lengthy, could jeopardize your received grant financing. The EIC should allow companies to decline the investment while retaining the grant if they are well-financed from other sources and the EIB's due diligence is too slow.

The EIC can cancel funding if inconsistencies are found during due diligence, such as misrepresentation, submission of false information, non-submission of information, suspicion of fraud, or any other ground listed in the EIC Accelerator contract. Termination can also occur if the non-investment is likely to affect the project's implementation or puts the funding decision into question.

Yes, the Step 3 EIC Jury can decide that the requested amount or funding type is inappropriate and change it, even after you've passed Steps 1 and 2. This applies to both EIC Accelerator Open and Strategic Challenges, and can affect funding modes like grant-first, grant-only, equity-only, and blended financing.

Yes, the EIC jury can substitute a grant with a repayable loan if they find the level of risk associated with your project to be lower than initially identified. This is a potential outcome of the evaluation process.

Yes, similar to the Step 2 and 3 evaluations, the EIC can also recommend changes to your funding type during the due diligence phase. For example, they might suggest starting with the grant component first if your company isn't yet mature for equity investment.

Blended finance refers to a combination of grant and equity financing offered by the EIC Accelerator. It allows companies to receive both upfront grant funding and potential equity investment to support their growth and scaling efforts.

ScienceBusiness has published a second draft of the 2023 EIC Work Programme, and the entire library of Horizon Europe documents by the European Commission can be found on their website. Remember that all information is subject to change and represents the author's opinion.

The EIC should release statistical data of all anonymized beneficiaries, including timelines and funding amounts. This information would help future applicants manage their expectations and better understand the funding process.

If your full application is assessed to be outside the scope of the Accelerator Challenges you submitted it to, it will be transferred to the Accelerator Open. This means your proposal will still be considered for funding, but under the general EIC Accelerator Open category.

The EIC Accelerator offers different funding options, including grant-only (up to TRL8), equity-only (up to TRL9), and blended finance (grant and equity to TRL9). The grant funding can be up to €2.5 million, while equity investments can reach up to €10 million. The best option depends on your project's needs and stage of development.

The EIC Accelerator application process has three steps. Step 1 involves a short application with a pitch deck and video. Step 2 requires a detailed business plan and supporting documents. Step 3 is an interview with an EIC Jury. You must pass each step to move on to the next.

Your application will be evaluated by experts who provide feedback. For Step 1 and Step 2, evaluators will give a GO or NO GO rating and detailed feedback. If you pass all three steps, you'll begin the Grant Agreement Contract (GAC) preparation and undergo a due diligence process.

The EIC Accelerator is a European Commission funding program for innovative DeepTech startups and SMEs. It provides grant and/or equity financing to help companies develop and scale up their technologies. To be eligible, companies generally need to be from EU or associated countries and have a technology at TRL 5 or higher.

The EIC Accelerator has both an 'Open' call and 'Challenge' calls. The 'Open' call is open to most industries, as long as they align with EU values. 'Challenge' calls focus on specific technology and industry themes outlined in the EIC Work Programme. Check the current Work Programme to see if your industry or technology fits.

The EIC Accelerator application is submitted through the Funding & Tenders Portal. This is where you'll find the proposal templates and submission system. Make sure to use detailed templates and collaborate with a team to prepare your documents before uploading them to the portal.

The EIC Accelerator application timeline varies, but expect 2-4 weeks for Step 1 preparation, 50-70 days for Step 2, and a few weeks between Step 2 results and the Step 3 interview. A fast process could take around 6 months, but rejections and resubmissions can extend it significantly.

The EIC Accelerator has a 'three strikes, you're out' rule. If you fail three times at either Step 1 or Step 2 with the same application, you'll be blocked from resubmitting it until the end of Horizon Europe in 2027. There are specific rules for Step 3 resubmissions, so check the guidelines carefully.

The EIC Accelerator is highly competitive. Historically, Step 1 has around a 67% pass rate, Step 2 around 22%, and Step 3 around 32.5%. This results in an overall success rate of approximately 4.8%. Keep in mind that these are estimations based on past data.

Ideal EIC Accelerator candidates typically have excellent DeepTech, a strong team, and a scalable business model. Alignment with EU interests is also crucial. If your company meets these criteria, the EIC Accelerator is worth considering, but remember that the evaluation process has some inherent randomness.

The EIC Accelerator provides up to €2.5 million in grant and €15 million in equity financing for DeepTech startups and small mid-caps. It helps them finalize product development, enter the market, and scale globally. Blended financing options (grant and equity) are also available.

Step 2 of the EIC Accelerator application involves submitting a full proposal, which is a detailed business plan. This step requires significant effort and builds upon the information initially presented in Step 1.

Eligible funding bodies include the EIC Pathfinder and Transition projects, Knowledge and Innovation Communities (KICs) supported by EIT, Eureka secretariat for SMEs supported under Eurostars-2, and companies supported by the WomenTech.EU programme.

The Plug-in scheme allows projects supported by certified national or regional programs to be reviewed for their innovation and market potential. If deemed suitable, these projects can be considered for EIC Accelerator support without a direct application to the call.

Both the Fast Track and Plug-in schemes allow applicants to skip Step 1 of the EIC Accelerator application process. This step involves submitting a short application including a pitch deck, video, and written proposal.

While seemingly beneficial, the Fast Track and Plug-in schemes offer limited practical advantage. Skipping Step 1 doesn't significantly reduce the overall effort, as the content is still needed for Step 2. Preparing a Step 1 proposal is generally recommended.

A more useful scheme would allow direct application to the Step 3 interviews, especially if the plug-in scheme includes additional due diligence specifically for the EIC Accelerator. This would significantly reduce the burden of the application process.

The EIC Ecosystem aims to create a platform connecting DeepTech companies with investors, consultants, coaches, and other relevant stakeholders. This platform will help applicants find support and access services, potentially through a subscription-based model.

The Fast Track scheme allows companies funded under specific EU grant or equity projects to apply to the EIC Accelerator without completing the initial Step 1 application. This aims to streamline the application process for already vetted projects.

EIC BAS (Business Acceleration Services) are services provided by Ecosystem Partners, including investors, mentors, innovation agencies, and more. These services offer access to incubation and acceleration programs, as well as services designed in collaboration with the EIC.

The mock jury should actively try to entrap the interviewees and corner them in areas where they are unprepared or uncomfortable. This involves asking progressively more difficult follow-up questions to expose weaknesses and potential vulnerabilities in the project.

Assign each team member a primary topic (e.g., CEO for business model, CTO for technical questions, CFO for financials). Practice question allocation in every mock session to avoid one person dominating the answers. Ensure team members are comfortable jumping in and answering questions as a unit.

It's crucial. Even if consultants or writers helped with the application, all three interviewees should be intimately familiar with all aspects of the proposal. The CFO should know the financials, the CTO the technical details, and so on, ensuring comprehensive coverage.

If you can't find someone internally, consider hiring an external pitch coach. Alternatively, existing consultants or internal team members can play the role by pretending they don't know the answers and asking the worst possible questions, focusing on weaknesses and potential criticisms.

Introduce interruptions during your mock Q&A sessions. Have the mock jury member cut off answers with follow-up questions after only 10-20 seconds, especially when the answer is confusing, slow, or irrelevant. This helps simulate the pressure of the real interview and forces you to be succinct.

The Q&A session is extremely important, often determining the success of your application. It can last up to 35 minutes after the initial 10-minute pitch. Thorough preparation and practice are essential to effectively address the jury's questions and concerns.

Practice these scenarios diligently. If a question is financial but relates to technical development costs, the CFO and CTO should coordinate. Sitting in the same room (for video calls) can facilitate seamless question transfer and well-timed responses.

Distribute all proposal documents to ensure at least one person knows the relevant information. All three interviewees must also know the EU's and the EC's rules. This prevents displaying red flags related to bankability, strategic challenges, or risk levels.

Make interruptions a habit during practice. This forces everyone involved to self-correct and polish their answers on the fly. Avoid brainstorming or discussing answers with colleagues during the mock session; aim for sharp, immediate responses.

Remember to be aware of EIC rules and agendas, avoid giving the jury any reason to reject you (red flags), and don't get bogged down on topics that don't benefit your application. Focus on presenting your project in the best possible light while addressing potential concerns.

Introduce technical slides with a question like "So, how do we accomplish this?" to re-engage the audience. Compare your approach to conventional methods to highlight the innovation's value. Simplify graphics as much as possible without omitting key details.

Yes, it's highly recommended to prepare a word-for-word script and practice it thoroughly. This will help you deliver a well-paced and natural presentation, even if you deviate from the script during the actual pitch.

Use a mix of approaches: single eye-catching sentences, impactful images or graphics, and simplified explanations of complex concepts. For detailed information like market analysis or financials, allow more time on those slides to build confidence.