Frequently Asked Questions

The EIC Accelerator, run by the European Commission and European Innovation Council, provides funding to SMEs and startups. It offers up to €2.5 million in grants and €15 million in equity financing, totaling a potential €17.5 million per project. This funding is designed to support innovative projects with high growth potential.

The EIC is placing a stronger emphasis on applicants owning or having exclusive rights to the underlying science and technology. The EIC Board President has stated that applicants should have substantial patents (more than 2) where they are the applicant, inventor, or licensee. This focus aims to ensure that funded projects are truly innovative and based on solid scientific foundations.

Recent changes include the removal of the rebuttal system, which previously allowed applicants to respond to evaluator feedback. Also, the EIC has experienced issues with its AI Submission Platform, leading to its cancellation shortly before a deadline. These changes highlight the evolving nature of the EIC Accelerator and the need to stay informed.

The EIC Accelerator application process is complex and involves three steps. Step 1 is a short proposal, Step 2 requires a detailed business plan, and Step 3 involves an interview with the EIC Jury. Due to the complexity, many applicants seek help from professional writers or consultants to navigate the process successfully.

'DeepTech' refers to companies with a strong scientific or engineering foundation, often involving significant research and development. The EIC Accelerator is increasingly focusing on DeepTech companies, especially those with patents and ownership of their scientific discoveries. This shift means software startups without a strong scientific basis may find it harder to secure funding.

Despite its flaws and inconsistencies, the EIC Accelerator remains a valuable resource for European startups. Applicants should be aware of the increased focus on DeepTech and the reduced budgets, which have led to a more competitive selection process. It's crucial to emphasize the scientific basis and intellectual property of your project, but remember that EIC policies and priorities can change rapidly.

The proposed process allows applicants to apply without needing grant writers, and the effort required increases with the chance of success. Evaluators can quickly compare applications, and internal knock-out rounds can be repeated if needed. It also ensures commercial experts evaluate business plans, and provides excellent cumulative feedback to applicants.

The pitch interview in Round 3 is a crucial step to further select applicants and identify companies for funding. It allows jurors to assess the applicant's ability to communicate their vision and strategy effectively. This round helps determine which companies are best positioned to receive financing and succeed.

The proposed system aims to improve the application experience by gradually increasing the difficulty of the applicant's effort. Step 1 is designed to be easy, while Steps 2 and 3 become more challenging. This reduces the risk of applicants investing extensive work into an application without meeting the minimum success criteria.

The proposed process addresses this by funneling financial metrics and business plans to a specialized pool of evaluators in Round 2. These evaluators consist of angel investors, VCs, and successful entrepreneurs with expertise in commercial assessment. This ensures that financial aspects are evaluated by qualified individuals.

Applicants receive cumulative feedback after each evaluation round (Rounds 1, 1b, and 2). This feedback provides valuable insights to improve their project and proposal. This iterative feedback loop helps applicants refine their approach and address weaknesses identified by the evaluators.

In Round 2, applicants who passed the initial internal evaluation submit a business plan. This plan focuses on work packages, financials, team, go-to-market strategy, and revenue expectations. Evaluators in this round consist of angel investors, VCs, and successful entrepreneurs who assess the business plan's viability.

The proposed evaluation process aims to quickly screen a large number of EIC Accelerator applications. It uses tools like elimination rounds, specialized evaluator pools, and shorter applications to enable direct project comparison. This approach seeks to avoid relying on complicated scoring systems and ensures commercial experts evaluate financial metrics and business plans.

One potential drawback is the possibility of unfair matchups in early rounds, leading to excellent projects being eliminated. Also, re-submitted projects might be viewed less favorably, though this can be mitigated by not disclosing re-submission status to evaluators. Finally, the initial screening could incentivize projects with poor business models to pass through.

The business plans in Round 2 are evaluated by a pool of angel investors, venture capitalists (VCs), and successful entrepreneurs. These evaluators are specifically vetted and verified to ensure their assessment of the business plan is sound and of high quality. This ensures a commercially focused evaluation.

This article describes a proposed evaluation process and does not reflect the current way EIC Accelerator applications are evaluated. The proposed process focuses on a multi-stage approach with increasing effort required from applicants as they progress. It also emphasizes specialized evaluator pools for different stages, particularly commercial experts for business plan assessments.

Yes, the equity financing process involves a much more in-depth due diligence compared to the grant process. This is because the EIC is taking an equity stake in your company, which involves long-term associations and potential board representation. The grant process is generally faster and simpler.

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.

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 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.

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 EIC Accelerator is still in its pilot phase, and the governing bodies are actively learning from the initial experiences. The 2021 version of the EIC Accelerator under Horizon Europe is expected to address many of the reported issues and provide a more transparent and smoother process.

According to the EIC Fund representatives, they are prioritizing success cases. However, it's important to note that individual evaluators might have different priorities. It's best to focus on demonstrating the potential for significant success and impact with your innovation.

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.

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.

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 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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.