The EIC Accelerator grant financing (with blended equity option) by the European Innovation Council (EIC) and European Commission (EC) funds Small- and Medium-Sized Enterprises (SME) and startups with up to €2.5 million in grants and €15 million in equity financing per project (€17.5 million total).

The EIC Accelerator sets out clear guidelines for applicants whereas it advertises to fund:

“...startups and spinout companies to develop and scaleup game-changing innovations…”

While additional information is found inside the EIC Work Programme, the general criteria are quite vague and the first hurdle for any company interested in the EIC Accelerator is to find out if the program is suitable at all (see EIC Accelerator Explained).

This article touches on common reasons why companies should not pursue the EIC Accelerator program and might be better off looking for alternatives such as EIC Pathfinder or EIC Transition as well as non-EIC grants (see One-Stop Shop).

Note: A company that is not suitable for the EIC Accelerator can be highly attractive to other investors as well as have an excellent technology and business model. The EIC Accelerator would have likely avoided funding companies such as TikTok, AirBnB, Amazon or the European Deliveroo in the TRL5-6 stage.

1. Technology

1.1 A Simple Technology

The EIC Accelerator has funded apps and pure software businesses before but this does not mean that it is easy to obtain funding with such technologies.

In a recent report on the program, common industries funded under the EIC Accelerator were in the areas of energy, agriculture, health and similar technologies which illustrates the highly technical and scientific nature of the desired products and services (see EIC Report).

The EIC Accelerator (formerly SME Instrument) has clearly become more business-focused and is now more easily swayed by good financials compared to other R&D grants but it still retains its general focus on disruptive innovations.

Every project that seeks EIC Accelerator financing should perform a realistic assessment of how sophisticated its technology is prior to applying for grant funding.

1.2 Intellectual Property (IP) and Innovation

There are a variety of industries that are very saturated or where differentiation is minuscule such as logistics-support solutions, communication tools, social networks, payment infrastructures and many others. This will render the description of the innovation and the elaboration of competitive differentiators difficult.

It is often best to apply with a grant project that has clear IP and differentiators in an industry that is less saturated. Although this does not need to be the norm since energy and battery industries are highly saturated but are repeatedly funded under the EIC.

By funding multiple projects in a single industry, the EIC is funding competitors which is effectively growing the industry rather than nurturing a single industry winner.

While competition is a reality for all businesses and should not be a reason to avoid the EIC Accelerator, it should be assessed if the market is overcrowded and if the commercial differentiators have long been eroded.

Ideally, the target market should not be in the process of being disrupted by many other startups at the time of the application.

2. Company

2.1 Small Team

Startups often have a chicken-and-egg problem whereas companies with very small teams and no track record need financing to grow but need growth to attract financing. Since bootstrapping (i.e. self-financing through revenues) is not an option in typical DeepTech companies, private or public funding is often sought out to bridge the gap.

The EIC Accelerator is funding large teams with 100+ employees but also small teams with less than 4 staff members but the latter is often a tough sell.

While Step 1 and Step 2 evaluators are happy to see that a team is having a large reach through scientists, contractors or freelancers, the Step 3 jury will likely be very critical of teams where staff members only account for 1-3 members.

It would be useful if the EIC were to publish company statistics on the beneficiaries since factors such as the team size will likely greatly influence the success chances. In general, a team of 5+ staff members would be advisable although smaller teams have also been funded.

2.2 Founded Recently

The EIC Accelerator specifically mentions startups as their ideal applicants whereas the statistics of funded projects show that 41% of companies are aged 6-10 years while only 9% are aged 5 years and below.

Still, if a company has only begun product developments recently while starting from scratch but already reached a Technology Readiness Level (see TRL) high enough for the EIC Accelerator then it might not be sophisticated or unique enough to succeed in the program.

Additionally, if a company is only a few months old, it has likely not built substantial customer interest or market traction yet which will severely limit the appeal of the project to the EIC Accelerator evaluators and jury.

Of course, an exception is a spin-off company that has been created from a larger company, University or research institute and is founded with a strong technology and market track record.

2.3 Limited Funding

The EIC Accelerator funds projects starting at TRL5 but prefers TRL6 as the starting point in most cases. To reach this level, especially for DeepTech projects, it is necessary to raise substantial seed investments to support personnel and hardware costs.

If a company has not raised substantial financing yet or has only raised the starting capital during the founding process then the technology might lack the sophistication necessary to succeed in the EIC Accelerator program.

2.4 Limited Traction or Customers

The EIC Accelerator is a market-focused funding program and, even though it explicitly foresees Research & Development work, it has a strong commercial focus. This often leads to overlaps in the judgment of the evaluators where the TRL is assessed through the use of the technology by existing customers.

This can even extend to the point where the EIC jury will reject a project for having a TRL that is too low because no customer has interacted with the prototype yet even though the validation clearly places it at TRL6.

While it is not necessary to have paying customers, it is highly beneficial to have existing customer relationships, Letters of Intent (LOI) and other proof of traction to satisfy the evaluators.

2.5 Lacking Corporate Identity

It is very common for evaluators and EIC jury members to perform an internet search of the company they are assessing. This includes the reading of website materials, LinkedIn profiles and other public company data.

If a company has no website, social presence, or even a domain name for company emails then it will place a negative light on the company itself. Since creating such online representations is simple and not costly, it is recommended to prepare them thoroughly before considering an EIC Accelerator application.

If the CEO of a company communicates using GMAIL or similar services then this is generally a sign that the project is not fit for the EIC Accelerator.

Conclusion

It will not be necessary for every EIC Accelerator applicant to implement all the recommendations above but each individual factor can be expected to impact the evaluation.

In general, it is often beneficial to err on the side of a straightforward technology with strong market interest and traction rather than a sophisticated technology with weak market interest.

Interestingly, companies with a simple technology would likely be able to raise substantial financing from private markets in a more efficient and straightforward process compared to the EIC Accelerator. But since the EIC offers non-dilutive grants, it is still useful as a funding vehicle for companies in addition to dilutive private financing (i.e. Investing in Well-Funded Companies).

Although, it is not aligned with the mission of the EIC.

These tips are not only useful for European startups, professional writers, consultants and Small and Medium-Sized Enterprises (SME) but are generally recommended when writing a business plan or investor documents.

Deadlines: Post-Horizon 2020, the EIC Accelerator accepts Step 1 submissions now while the deadlines for the full applications (Step 2) under Horizon Europe are listed below. The Step 1 applications must be submitted weeks in advance of Step 2. The next EIC Accelerator cut-off for Step 2 (full proposal) can be found here. After Brexit, UK companies can still apply to the EIC Accelerator under Horizon Europe albeit with non-dilutive grant applications only - thereby excluding equity-financing. Switzerland has resumed its participation in Horizon Europe and is now eligible for the EIC Accelerator.

Contact: You can reach out to us via this contact form to work with a professional consultant.

AI Grant Writer: ChatEIC is a fully automated EIC Accelerator grant proposal writer: Get it here.

Eureka Network: The Eureka Network delivers various international collaborative R&D initiatives such as Network Projects, Clusters, Eurostars, Globalstars, and Innowwide, providing funding from €50K to €6.75M per project based on the specific initiative. This network emphasizes market-driven innovation and deep-tech advancement across multiple technology sectors including ICT/Digital, Industrial/Manufacturing, Bio/Medical Technologies, Energy/Environment, Quantum, AI, and Circular Economy. Eligible participants include SMEs, large enterprises, research organizations, universities, and startups, with Eurostars particularly focused on R&D-performing SMEs. Get Started

EIC Transition: EIC Transition delivers up to €2.5 million in funding to overcome the 'valley of death' gap between laboratory research and market deployment, emphasizing technology maturation and validation. The initiative supports single legal entities or small consortia of 2-5 partners including SMEs, start-ups, spin-offs, and research organizations. Key technology domains include Health/Medical Technologies, Green/Environmental Innovation, Digital/Microelectronics, Quantum Technologies, and AI/Robotics. Get Started

EIC STEP Scale-Up: EIC STEP Scale-Up delivers significant equity investments of €10-30 million for established deep-tech companies prepared for hyper-growth and large-scale expansion. The initiative targets SMEs or small mid-caps with up to 499 employees who have obtained pre-commitment from qualified investors. Primary focus areas include Digital & Deep Tech (Semiconductors, AI, Quantum), Clean Technologies for Net-Zero objectives, and Biotechnologies. Get Started

EIC Pre-Accelerator: EIC Pre-Accelerator represents a 2025 pilot initiative delivering €300,000-€500,000 in funding for early-stage deep-tech development and preparation for the EIC Accelerator program. This program is exclusively accessible to single SMEs or small mid-caps from 'Widening countries' to foster regional innovation development. The initiative encompasses deep-tech innovations across physical, biological, and digital domains. Get Started

EIC Pathfinder: EIC Pathfinder delivers up to €3 million for Open calls and up to €4 million for Challenge-based calls to support early-stage research and development with proof-of-principle validation. The initiative requires research consortia with a minimum of 3 partners from 3 different countries, including universities, research organizations, and SMEs. Primary technology focus areas include Health/Medical, Quantum Technologies, AI, Environmental/Energy, and Advanced Materials. Get Started

EIC Accelerator: EIC Accelerator delivers flexible funding options including blended finance (€2.5M grant + €0.5M-€10M equity), grant-only (up to €2.5M), or equity-only arrangements for scale-up and market deployment of breakthrough innovations. The initiative targets SMEs, start-ups, and small mid-caps with up to 499 employees, with MedTech/Healthcare representing 35% of funded projects. Additional technology areas include Biopharma, Energy, AI, Quantum, Aerospace, Advanced Materials, and Semiconductors. Get Started

Innovation Partnership: Innovation Partnership enables collaborative innovation between public and private sectors with typical funding of €1-5 million per project. The initiative supports cross-sectoral strategic technologies through public-private partnerships and consortia. Projects concentrate on addressing societal challenges through collaborative innovation approaches. Get Started

Innovation Fund: The EU Innovation Fund delivers substantial funding of €7.5 million to €300 million for large-scale demonstration of innovative low-carbon technologies. The initiative targets clean energy, carbon capture, renewable energy, and energy storage technologies to accelerate the transition to a low-carbon economy. Eligible participants include large companies, consortia, and public entities capable of implementing large-scale demonstration projects. Get Started

Innovate UK: Innovate UK delivers various programs with funding ranging from £25K to £10M depending on the specific initiative, supporting business-led innovation, collaborative R&D, and knowledge transfer. The organization funds projects across all sectors with particular emphasis on emerging technologies and supports UK-based businesses, research organizations, and universities. Programs are designed to drive economic growth through innovation and technology commercialization. Get Started

Industrial Partnership: Industrial Partnership delivers €2-10 million in funding for industrial research and innovation partnerships focusing on manufacturing, industrial technologies, and digital transformation. The initiative supports industrial consortia and research organizations in developing collaborative solutions for industrial challenges. Projects aim to strengthen European industrial competitiveness through strategic partnerships. Get Started

Eurostars: Eurostars represents a joint EU-Eureka initiative delivering €50K-€500K for international R&D collaboration specifically led by SMEs. The program adopts a bottom-up approach, accepting projects from all technology fields without predefined thematic restrictions. R&D-performing SMEs must lead the consortium and demonstrate significant R&D activities. Get Started

LIFE Programme: The LIFE Programme delivers €1-10 million in funding for environmental protection, climate action, and nature conservation projects across the European Union. The initiative supports environmental technologies, climate adaptation strategies, and biodiversity conservation initiatives. Eligible participants include public authorities, private companies, NGOs, and research institutions working on environmental and climate challenges. Get Started

Neotec: Neotec represents a Spanish initiative delivering €250K-€1M in funding for technology-based business creation and development, supporting the growth of innovative Spanish SMEs and start-ups. The program covers all technology sectors and aims to strengthen Spain's technology ecosystem. Funding is specifically targeted at Spanish technology-based SMEs and start-ups to enhance their competitiveness and market presence. Get Started

Thematic Priorities: EU Thematic Priorities encompass various programs aligned with EU strategic priorities including green transition, digital transformation, health, and security initiatives. Funding amounts vary based on the specific program and call requirements, with projects designed to address key European challenges. Applicant eligibility varies by specific program and call, with different requirements for different thematic areas. Get Started

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