Frequently Asked Questions

If you are offered a reimbursable advance (loan) and you are not able to reimburse it or do not want to, the reimbursable advance will be transformed into equity. In case of bankruptcy, the reimbursable advance will be considered as a grant and hence written off.

Offering a loan instead of a grant allows the EIC to fund a wider range of projects. This includes projects that may not be considered deeply innovative but have strong business models or financial health. It also allows them to fund projects with lower risk profiles, potentially improving their public image and success rate.

The EIC is actively building a network of investors through its online platform. They aim to connect companies with investors who have undergone prior EIC due diligence. This includes strategic investors who can offer support beyond just financing, which is particularly beneficial for early-stage projects from universities and research institutions.

The EIC Accelerator typically provides up to €15 million in equity financing per project. However, in certain justified cases, especially those aligned with the EIC Accelerator’s Strategic Challenges, you might be able to request a higher amount. This is particularly relevant for technologies strategic to the EU, facing global competition, or having funding needs exceeding typical European availability.

No, all information and conclusions provided are subject to change and represent the opinion of the author based on a draft document. The EIC itself states that the draft work programme has not been adopted or endorsed by the European Commission and may not reflect the official position of the Commission.

ScienceBusiness has published a draft of the 2023 EIC Work Programme. You can also find a library of Horizon Europe documents by the European Commission (EC) on their website, although these are mostly in draft form. Keep in mind that all information is subject to change.

Reimbursable advances are essentially interest-free loans offered by the EIC, up to €2.5 million, covering up to 70% of eligible innovation costs. They are considered by the jury in Step 3 interviews, particularly for projects with short innovation cycles. If you can't or don't want to reimburse, the advance can be converted into equity, or treated as a grant in case of bankruptcy.

Despite its intention, the 'Need for the EIC' section often becomes generic because applicants feel pressured to tell evaluators what they want to hear. Companies avoid being realistic about their fundraising plans to avoid potential criticism. This leads to a standardized response that lacks genuine insight into the company's specific needs.

The EIC's adoption of AI in grant evaluations is essential for survival due to the expected surge in AI-generated applications. This presents an opportunity to streamline the evaluation process and prioritize key factors like the company's technology and potential. The EIC must adapt to maintain efficiency and effectiveness in selecting promising projects.

The quality of applications is directly linked to the quality of the EIC's evaluation process. By streamlining the process and focusing on what truly matters, such as the company and the technology, the EIC can attract higher-quality applicants. This involves removing redundant sections and focusing on core aspects of innovation and commercial potential.

The author argues that the 'Gender and Diversity' section is easily manipulated and doesn't accurately reflect a company's true commitment to diversity. Companies can easily write this section in a way that satisfies evaluators without genuine diversity. Therefore, it becomes a redundant and ineffective measure.

The sheer volume of AI-generated applications will overwhelm the current manual evaluation system. To remain competitive and avoid being left behind, the EIC must adapt and integrate AI into its evaluation process. This adaptation is crucial for handling the expected surge in submissions and maintaining a timely and effective evaluation process.

The EIC Accelerator program, funded by the European Commission and European Innovation Council, offers up to €2.5 million in grants and €10 million in equity financing to startups and SMEs. It's designed to support innovative companies in scaling up their businesses and bringing breakthrough technologies to market. Many applicants receive support from professional writers or consultants to navigate the application process.

The author suggests removing generic sections like 'Mission and Vision,' 'Gender and Diversity,' and 'Need for the EIC.' These sections often contain boilerplate content that doesn't provide meaningful insights into the company or technology. Removing them would streamline the evaluation process and focus on more relevant aspects.

AI tools are making it easier to generate grant proposals, leading to a significant increase in the number of submissions. This surge in applications creates an imbalance with the current manual evaluation process. The EIC will likely need to adopt AI-driven evaluation methods to manage the increased workload and maintain efficiency.

If AI evaluators heavily weigh generic sections like 'Gender and Diversity,' companies might manipulate their teams to meet demographic criteria. This could lead to superficial changes without genuine commitment to diversity. This would ultimately degrade the quality of applications and undermine the EIC's goals.

The author views TRLs as subjective and confusing, suggesting they add unnecessary complexity to the evaluation process. They propose a simplified approach to technology levels, focusing on prototype creation, refinement, and scaling. This streamlined approach aims to make the evaluation process clearer and more efficient.

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.

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.

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.

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.

The EIC Accelerator typically funds projects at TRL5 or TRL6, which often requires significant seed investments, especially for DeepTech projects. If your company hasn't raised substantial funding, it might suggest that your technology isn't yet sophisticated enough for the program. Consider seeking additional funding to reach a higher TRL before applying.

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.

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.

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.

Yes, evaluators often research companies online, including their website, LinkedIn profiles, and other public data. A lack of online presence, such as a website or professional email addresses, can negatively impact your application. Ensure your company has a professional online presence before applying to create a positive impression.

While the EIC Accelerator funds both large and small teams, very small teams (1-3 people) can face challenges. Similarly, very young companies (a few months old) may lack the customer interest and market traction needed to impress evaluators. Consider building a slightly larger team and demonstrating some market validation before applying. Spin-offs with a strong technology and market track record are an exception.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.