Why It Could Be Beneficial to Apply Early to the 2021 EIC Accelerator (SME Instrument)

The EIC Accelerator blended financing (formerly SME Instrument Phase 2, grant and equity financing) will be reinstated in 2021 under Horizon Europe (2021-2027) with an updated evaluation process (read: Proposed 2021 Process). This will likely present new challenges to the evaluation procedure as lead by European Agency for SME's (EASME) and the European Innovation Council (EIC) but it can also present improved opportunities for startups and Small- and Medium-Sized Enterprises (SME).

Consultants and professional writers should be aware that such a new process can artificially tilt the success chances of grant applications since a continuously open call (i.e. Step 1) can lead to a bottleneck in Step 2 which makes the timing of the application essential. The following presents a list of considerations and assumptions that can impact the evaluation process:

• Open deadline: Since Step 1 will be continuously open, each applicant that applies early and receives a YES will have a guaranteed spot for the Step 2 evaluation
• YES or NO grading only: Since there is no numeric scoring, it is likely that proposals will not be ranked which means that every YES will have to be invited to Step 2 (i.e. no retrospective rejection due to rankings)
• Limited spots for Step 2: If the EIC and EASME realize in April or May 2021 (i.e. the next deadline for Step 2 is in June 2021 - see Cut-Off) that there are too many YES gradings for Step 1 already, this might significantly impact the success chances of late Step 1 applicants.

The above reasoning is highly speculative but it is likely that the new evaluation process will undergo an equilibration phase during which the thresholds need to be adjusted in some way. In the past, a score of 13 acted as the official funding threshold while the unofficial threshold (i.e. 13.5 to 14.1) was determined through rankings enabled by the scoring system. Without such a scoring system to determine the rankings, the EIC has no way of limiting the numbers of applications other than to increase the strictness of the YES/NO evaluations dynamically which can lead to unfair results.

Assuming that the EASME will not, in secret, employ an internal ranking system with scores (i.e. without communicating this to applicants) then the same logic would apply to Step 2. A single evaluation round of the full step 2 proposals could lead to an excess of applications for step 3 and, since there is no ranking, the Step 2 evaluation process must be repeated but more strictly. What strictly would mean in this case is not clear but it seems like a less transparent method of evaluating proposals compared to the 2020 process.

Conclusion

It is impossible to estimate the impact of the 2021 EIC Accelerator grant application process but this uncertainty could be mitigated through clear communication from the EASME and the EIC as to how certain thresholds are set and enforced (i.e. by providing real-time updates on YES and NO counts and thresholds). This extends to clear communication if evaluation steps are repeated internally in case applications exceed the capacities for subsequent evaluation steps. This is especially useful if an applicant can choose less competitive EIC Accelerator topics or if the timing of the application is not fixed (i.e. postponing an application to avoid the freezing period).

In summary, it could be beneficial for applicants to apply to Step 1 of the EIC Accelerator in 2021 as soon as possible since an early YES will guarantee a spot to the Step 2 evaluation while this might be significantly more difficult the later one applies.

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.

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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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