EIC Accelerator (SME Instrument Phase 2) – Introduction and Blended Finance Posted on May 22, 2020October 9, 2020 By Stephan Segler, Ph.D. Writing a successful EIC Accelerator (SME Instrument) application is always challenging due to the competitive nature of the grant and the 2 step evaluation process (i.e. written application and in-person interview). Success Rates Typical success rates range between 2% and 5% depending on the individual budget and the number of applicants but this does not mean that it’s impossible to receive the financing, it just means that you will have to be dedicated and determined to perfect your proposal until you have reached your target. To not be discouraged by setbacks and to understand that the reviewing process for the written application will require you to cover many parts which are not directly relevant to your business but are relevant to the EU. With high-quality writing and the determination to improve the application in case of a rejection, you can increase your success rate to at least 30% but there will always be a chance for failure. Attention to detail will ultimately lead you to your goal but you must be committed to placing yourself into the reviewer’s position by not only looking at the official proposal template but by also studying the criteria which are the actual basis for your score. Writing and Financing Pre-empt any concerns or questions the reviewer might have by covering all grading criteria convincingly throughout the proposal. Creating a new market or a new value-chain might not be relevant to you and addressing gender equality is in no way part of your business model but if its part of your score then you must address it. Do not consider any text, image or graphic to ever be good enough but treat it as a place holder until you have created a better version. For a single project, you are able to request up to €17,500,000 in financing (or even more if duly justified) whereas €2,500,000 is the maximum non-refundable grant amount by the European Commission (EC) while €15,000,000 is the equity component by the European Innovation Council (EIC) Fund which requires the applicant to offer company ownership (i.e. 10% to 25%) in exchange. It is possible to either ask for a pure grant or for blended finance (a combination of equity and grant) but it is not possible to ask for equity-only financing. The grant is always paid as 70% of the presented costs which means that a project which requires €1m will be eligible for a €0.7m grant while the applicant has to explain how the 30% co-financing of €0.3m will be reached. The requested equity amount will be paid in full but there is always the option to receive a counteroffer by the EC if the project budget does not fit the jury’s expectations or assessment. Reviewing While the reviewing process (step 1 and 2) will remain the same regardless of choosing grant or blended finance, the contribution itself is managed by the EC in the case of a grant and by the EIC governing bodies with support from the European Investment Bank (EIB) Group in the case of equity financing. The latter is associated with a more sophisticated due diligence process and the project will be offered to a pool of private investors who can provide financing in place of the EIC. As a result, there are different recommendations with respect to the types of projects or companies that are to be funded by each source. For example, equity financing is targeted at especially high-risk projects that are not attractive for the market yet. This criterion is also important for grant requests but equity financing further identifies companies with low or limited turnover as well as negative EBITDA as preferred targets (see Blended Finance Guidelines). This article was last modified on Oct 9, 2020 @ 12:21 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: Step 1 Open now: Apply as soon as possible to be eligible for the next Step 2 submission deadline Step 2 (closing 17:00 Brussels Time) 1st cut-off 2025: - 2nd cut-off 2025: March 12th 2025 3rd cut-off 2025: - 4th cut-off 2025: October 1st 2025 Step 3 4th cut-off 2024: January 13th to 17th 2025 1st cut-off 2025: TBD 2nd cut-off 2025: TBD 3rd cut-off 2025: TBD 4th cut-off 2025: TBD 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. Contact: You can reach out to us via this contact form to work with a professional consultant. EU, UK & US Startups: Alternative financing options for EU, UK and US innovation startups are the EIC Pathfinder (combining Future and Emerging Technologies - FET Open & FET Proactive) with €4M per project, Thematic Priorities, European Innovation Partnerships (EIP), Innovate UK with £3M (for UK-companies only) as well as the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) grants with $1M (for US-companies only). Any more questions? View the Frequently Asked Questions (FAQ) section. Want to see all articles? They can be found here. For Updates: Join this Newsletter! by Stephan Segler, PhDProfessional Grant Consultant at Segler Consulting General information on the EIC Accelerator template, professional grant writing and how to prepare a successful application can be found in the following articles: A Quick FTO Guide for EIC Accelerator Applicants in a Rush 2023 Budget Allocations for EIC Pathfinder, Transition and Accelerator Developing the Unique Selling Points (USP) for the EIC Accelerator Explaining the Resubmission Process for the EIC Accelerator A Short but Comprehensive Explanation of the EIC Accelerator EIC Accelerator Success Cases Deciding Between EIC Pathfinder, Transition and Accelerator A Winning Candidate for the EIC Accelerator EIC Accelerator Interview Preparation Process: Scripting the Pitch (Part 1) EIC Accelerator Horizon 2020 Phase 2 SME Instrument / EIC Accelerator EIC Accelerator equityEIC Accelerator financingEIC Accelerator grantEIC Accelerator rejectionEIC Accelerator successEIC Accelerator templateEIC Accelerator womenGrant AmountIndustries & CompaniesInvestorsSME Instrument Phase 2Writing Tips
EIC Accelerator Business Models for EIC Accelerator Applications (SME Instrument) Posted on May 24, 2020October 9, 2020 There are a great number of different business models available to choose from (i.e. marketplaces, product sales, SaaS, B2B, B2C, B2B2C, etc.) and the EU even lists business model innovations as a viable project type which can receive innovation financing. Still, some business models are better than others but it… Read More
EIC Accelerator Specific Buzzwords to be used in EIC Accelerator Applications (SME Instrument Phase 2) Posted on October 14, 2020October 9, 2020 The European Commission (EC) and the European Innovation Council (EIC) in particular have a variety of keywords (or buzzwords) that are often asked for in the official EIC Accelerator grant proposal template (SME Instrument Phase 2). Such keywords are not required to be part of a good business model but,… Read More
EIC Accelerator Document Formatting Tips for the EIC Accelerator Grant pt.3 (SME Instrument Phase 2) Posted on June 12, 2020October 9, 2020 For part 1 & part 2 of the EIC Accelerator grant formatting tips, please read this & this article. Proposal Colour The EIC Accelerator grant (SME Instrument Phase 2) proposal colour should be pleasant, consistent and not distract from the written content. It is recommended to choose one main proposal… Read More