Frequently Asked Questions
Showing 50 of 2432 FAQs (Page 48 of 49)
How important is it to have customers or market traction before applying?
The EIC Accelerator has a strong commercial focus, so demonstrating market traction is crucial. While paying customers aren't mandatory, having existing customer relationships, Letters of Intent, or other proof of market interest significantly strengthens your application. The EIC jury may even reject projects lacking customer interaction, even if the technology is at TRL6.
What kind of companies is the EIC Accelerator NOT really designed for?
The EIC Accelerator isn't the best fit for companies with very simple technologies, those lacking strong intellectual property or clear competitive advantages, or those operating in extremely saturated markets. While the EIC has funded some software businesses, it generally favors projects with a strong scientific or technical foundation. If your innovation isn't particularly disruptive or unique, you might want to explore other funding options.
Does the EIC Accelerator fund competing companies in the same industry?
Yes, the EIC sometimes funds multiple projects in the same industry, effectively growing the industry as a whole rather than picking a single winner. While competition is a reality for all businesses, it's important to assess whether your market is already overcrowded and if your commercial differentiators have been eroded. Consider if your target market is being disrupted by many other startups.
If my technology is simple, should I still apply for the EIC Accelerator?
While the EIC Accelerator has funded some projects with simpler technologies, it's generally geared towards disruptive innovations. If your technology is relatively simple, you might find it easier to raise private funding, which can be a more efficient process. However, the EIC offers non-dilutive grants, so it can still be a useful funding option, even for companies that could attract private investment.
What are some alternative funding options if the EIC Accelerator isn't a good fit?
If the EIC Accelerator isn't suitable for your company, consider exploring alternatives such as EIC Pathfinder or EIC Transition, as well as non-EIC grants. These programs may be a better match for your technology and stage of development. Also, remember that not being a fit for the EIC doesn't mean your company isn't attractive to other investors.
What Technology Readiness Level (TRL) should my project be at to be considered?
The EIC Accelerator funds projects starting at TRL5 but prefers TRL6 as the starting point in most cases. This means you should have a technology that has been validated in a relevant environment (TRL5) or demonstrated in a relevant environment (TRL6) before applying. Make sure you can provide evidence to support your TRL claim.
What if my technology is really advanced but the market isn't that interested?
The EIC Accelerator generally favors projects with strong market interest and traction, even if the technology is relatively straightforward. A sophisticated technology with weak market interest may be less likely to succeed in the application process. Focus on demonstrating market demand for your innovation.
What kind of projects is the EIC Accelerator supposed to fund?
The EIC Accelerator is designed to fund deep tech projects with high capital needs that bridge the funding gap until revenues are generated. These projects are typically too risky for private investors and need support to attract the full investment needed for scale-up. The EIC aims to support high-risk, high-reward projects rather than 'safe bets' that private markets would typically finance.
What's considered 'DeepTech' for EIC Accelerator funding?
DeepTech typically refers to innovations based on scientific discovery or technological breakthroughs. These often involve hardware or complex technologies that require significant capital investment and have longer development timelines. Software projects can be considered DeepTech, but often face more difficulty securing EIC funding compared to hardware due to lower capital requirements and faster potential ROI for private investors.
Why would a company with existing funding apply for an EIC Accelerator grant?
A company with existing funding might apply for an EIC Accelerator grant to further de-risk their project and attract additional private financing. However, this is questionable if the company already has substantial revenues and investor interest. The EIC's mission is to help companies that struggle to attract financing, not those that are already well-funded.
What are the different steps in the EIC Accelerator application process?
The EIC Accelerator application process involves multiple steps, including Step 1, Step 2, and Step 3 interviews. Companies that successfully pass Step 1 and Step 2 are invited to Step 3 interviews. The time between Step 2 submission and Step 3 interviews can be several weeks, creating a waiting period.
What is the success rate for the EIC Accelerator?
The success rates for the EIC Accelerator are quite low, with success rates around 5% (as seen in 2022 results). This highlights the competitive nature of the program and the importance of a strong application. Startups often seek expert help to assess their chances of success.
What is 'blended finance' in the context of the EIC Accelerator?
Blended finance refers to the combination of grant funding and equity investment offered by the EIC Accelerator. The grant component provides non-dilutive funding, while the equity component involves the EIC Fund taking an ownership stake in the company. This approach aims to provide comprehensive financial support for scaling up deep tech innovations.
What is the maximum grant amount available through the EIC Accelerator?
The maximum grant amount available through the EIC Accelerator is €2.5 million. This is typically intended to bridge a funding gap or de-risk a project for companies struggling to attract sufficient private investment. Companies must justify their need for this grant support.
What should companies and consultants consider when applying for the EIC Accelerator?
Companies and consultants should carefully consider whether the project aligns with the EIC's mission of supporting high-risk, deep tech innovations. It's important to manage expectations and understand that the EIC is intended to bridge funding gaps for companies struggling to attract private investment. Accurate recommendations are crucial for prospective applicants.
What are some potential reasons why the EIC might fund a company that doesn't perfectly fit its mission?
There are several potential reasons. The EIC might aim to foster a closer relationship with a company that is largely funded by non-EU sources. Another possibility is that the Step 3 Jury prioritizes the most investable companies, even if they don't perfectly align with the EIC's mission of supporting high-risk, deep tech projects.
What is the EIC Accelerator program?
The EIC Accelerator provides blended financing (grant and equity) to startups and SMEs, offering up to €2.5 million in grant and €15 million in equity. It targets deep tech innovations that require significant funding and have difficulty attracting private investment due to high risk and long time horizons. The goal is to help these companies scale up and reach the market faster.
What can I learn from the EIC Accelerator results?
The EIC Accelerator is highly competitive, so focus on preparing high-quality proposal documents for each step. The EIC is looking for ambitious companies with strong teams and innovative solutions that align with EU priorities. Consider seeking support from experienced consultants to navigate the complex application process.
What is the 'grant-first' funding option?
The 'grant-first' funding option means that the company initially receives grant funding. The equity portion of the funding may be considered at a later stage, depending on the company's performance and needs. This allows companies to get started with their projects without immediately diluting their equity.
What is STABL Energy GmbH and why were they successful?
STABL Energy GmbH develops innovative power electronics for Battery Energy Storage Systems (BESS). They were successful because they align with the EIC's Green Deal Strategic Challenge, specifically in the Battery and Energy Storage subsegment. They also have high-level partnerships, traction, and a strong management team.
Why was the EIC Accelerator budget reduced in 2021?
The original budget was reduced because the EIC deemed many companies unsuitable to receive funding. Despite having an excess budget, they felt that there weren't enough excellent cases to justify allocating the full amount. This suggests a higher standard for project quality in 2021.
What type of funding did most successful applicants receive?
According to the official list of beneficiaries, 48% received blended finance (grant and equity), 8% received grant-only, 37% received grant-first, and 8% received equity-only. This indicates that blended finance was the most common type of funding awarded.
How has the EIC Accelerator application process changed?
The application process has changed significantly since Horizon 2020. It now involves a longer proposal document, new templates, pitch videos, read-only pitch decks, and more supporting information. The process is now a 3-step process, making it more rigorous and demanding for applicants.
Which countries had the most successful applicants in the June 2021 call?
The top three countries with the most successful applicants in the June 2021 EIC Accelerator call were France (18%), Germany (17%), and the Netherlands (12%). These countries had the highest percentage of beneficiaries who secured funding.
What were the success rates for the June 2021 EIC Accelerator call?
The overall success rate for the June 2021 EIC Accelerator call was approximately 5.4%. This was calculated based on an estimated 1,196 applicants, with 65 ultimately receiving funding. The success rates for each step were 67% for Step 1, 16% for Step 2, and 50% for Step 3.
What is the EIC Accelerator?
The EIC Accelerator provides blended financing (grant and equity) to Small- and Medium-Sized Enterprises (SMEs) and startups with breakthrough innovations. It aims to support companies with the potential to create new markets or disrupt existing ones. The EIC Accelerator helps companies scale up and bring their innovations to market.
What made STABL Energy GmbH a good fit for the EIC Accelerator?
STABL was a good fit because their technology enables a sustainable energy storage ecosystem, aligning with the EIC's Green Deal Strategic Challenge. They also demonstrated a strong vision, the capability to realize their vision, and the potential to significantly impact the European technological landscape.
What is the EIC Accelerator?
The EIC Accelerator provides funding to startups and SMEs, offering up to €2.5 million in grant and €15 million in equity financing per project, for a maximum of €17.5 million total. It aims to support innovative companies in scaling up their businesses.
What were the success rates for the October 2022 EIC Accelerator cut-off?
The overall success rate from Step 2 was 7.1%, with a 32.5% interview selection rate for Step 3. Factoring in Step 1, the approximate total success rate for the entire application process was around 4.8%.
What types of funding are available through the EIC Accelerator?
The EIC Accelerator offers different funding options, including grant-only, grant-first, equity-only, and blended finance (grant and equity). In the October 2022 cut-off, blended finance was the most common type of funding awarded.
What is the average funding amount awarded through the EIC Accelerator?
For the October 2022 cut-off, the average EIC Accelerator ticket size was €6.03 million. This is based on a total budget of €470 million allocated to the 78 winning companies.
Who is Circu Li-ion and what problem are they solving?
Circu Li-ion is a company focused on sustainable battery energy storage. They address the growing scarcity and cost of lithium by upcycling end-of-life batteries, giving them a second life through automated, data-driven, and AI-controlled technology.
Who is Iris.AI?
Iris.AI is a company that received EIC Accelerator financing. They were supported by Segler Consulting during some stages of the application process, though the blog post does not specify their area of focus.
Is it possible to re-submit proposals to the EIC Accelerator?
Yes, it is possible to re-submit proposals. Applicants can also skip application deadlines, which makes calculating exact success rates challenging. Therefore, the success rates provided are approximate.
Who is eligible to apply for the EIC Accelerator?
The EIC Accelerator is designed for startups and Small- and Medium-Sized Enterprises (SMEs). The blog post also mentions that the information is useful for professional writers, freelancers or consultants involved in the application process.
What is blended finance in the context of the EIC Accelerator?
Blended finance refers to a combination of grant and equity funding provided by the EIC Accelerator. This type of funding was awarded to the majority of companies in the October 2022 cut-off, representing 56.4% of the funded companies.
Where can I find more information about past EIC Accelerator results?
The blog post references previous cut-offs in June 2021 and May 2022. It also includes a link to a PDF article with further details. You can also check the EUeic Twitter account for updates.
What is the EIC Accelerator?
The EIC Accelerator blended financing (formerly SME Instrument Phase 2, grant and equity) by the European Commission (EC) and European Innovation Council (EIC) is designed for startups and Small- and Medium-Sized Enterprises (SME). It awards up to €2.5 million in grant and €10 million in equity financing per project (€12.5 million total) and is the most well-funded funding instrument in the EIC portfolio. A Short but Comprehensive Explanation of the EIC Accelerator
Where are EIC Accelerator results published?
The EIC Accelerator applicants are notified via email and on the EIC website. A list of beneficiaries and reports are made available through a variety of EIC communication outlets such as the European Innovation Council (EIC) Twitter account @eueic, the EU news regarding the EIC and the European Innovation Council and SMEs Executive Agency (EISMEA) news site.
Where can I find updates on the EIC Accelerator?
There are a variety of news outlets that provide information on the EIC Accelerator such as the European Innovation Council (EIC) Twitter account @eueic, the EU news regarding the EIC and the European Innovation Council and SMEs Executive Agency (EISMEA) news site.
How long should an EIC Accelerator project be?
The project should be 1 to 2 years in duration.
Can non-EU countries apply to the EIC Accelerator?
Yes, some non-EU countries that can apply are Norway, Albania, Bosnia and Herzegovina, North Macedonia, Montenegro, Serbia, Turkey, Israel, Moldova, Ukraine, the United Kingdom, Tunisia, Georgia and Armenia. See: All Eligible EIC Accelerator Countries (including the United Kingdom, Switzerland and Ukraine)
Can a subsidiary apply to the EIC Accelerator?
Yes, the subsidiary has to declare all upstream and downstream relationships with other entities which include parent companies. The application is eligible if the Small and Medium-Sized Enterprise (SME) is deemed independent.
What is the maximum Technology Readiness Level (TRL) an EIC Accelerator project can have?
TRL5 to TRL8 is funded via grants while equity financing is funding TRL5 to TRL9. A grant project can start at TRL5-7 while an equity project could start at TRL5-8. See: How the EIC Accelerator Funds Technology Readiness Levels (TRL) (SME Instrument)
Who receives the company ownership for the EIC Accelerator equity financing?
The European Innovation Council (EIC) is supported by the European Investment Bank (EIB) and Alter Domus Luxembourg to manage EIC Fund investments.
How much company ownership is given in return for equity financing under the EIC Accelerator?
The negotiations and due diligence following the funding approval will determine the exact amount but up to 25% can be expected depending on the company's valuation and the amount requested.
What is the difference between EIC Accelerator grant, equity and blended financing?
Grant financing refers to non-repayable financing by the European Commission (EC) while equity financing by the European Innovation Council (EIC) EIC Fund and the European Investment Bank (EIB) is in exchange for company ownership (i.e. equity). Blended financing is a combination of grant and equity financing. See: A Short but Comprehensive Explanation of the EIC Accelerator
How much financing can be received under the EIC Accelerator?
The EIC Accelerator provides up to €2.5 million in grant and €10 million in equity financing which means that a maximum of €12.5 million can be requested. See: A Short but Comprehensive Explanation of the EIC Accelerator
What is the ESR?
The Evaluation Summary Report (ESR) is the final evaluation document after an EIC Accelerator application which gives the score and feedback.
What is the difference between the SME Instrument and the EIC Accelerator?
The names are interchangeable whereas the SME instrument Phase 2 has been renamed to the EIC Accelerator in June 2019.