How the EIC Can Incentivise Shorter and Clearer Applications for the EIC Accelerator (SME Instrument Phase 2) - Part 1

Information for readers: The following is a description of a proposed evaluation process but it does not, in any way, reflect the current way EIC Accelerator applications are evaluated. For this, please read this article.

The European Commission (EC) and the European Innovation Council (EIC) have always aimed at optimizing and adapting the EIC Accelerator (formerly SME Instrument Phase 2, grant and equity financing) proposal template and application process to further reduce the workload on both applicants and evaluators. Still, due to its comprehensive requirements, startups and Small- and Medium-Sized Enterprises (SME) have always had difficulties in writing an application in-house and have tended to seek professional help by hiring a writer or consultant who can facilitate this process (read: Hire a Professional Consultant).

Restricting Access to Funding Through Complexity

While great improvements have been made in this regard through the European Agency for SME's (EASME) which rapidly performs remote evaluations and the introduction of in-person pitch interviews in Brussels or remote video-calls, an EIC Accelerator proposal has always been hard to evaluate and even harder to prepare. Applications have a very high information density and force the management team of the company to either spend many weeks and months on perfecting an application or seek external help.

As a result, companies that do not have the time or resources for such an effort were unable to apply in the past. To combat this significant investment-obstacle and lower the barrier to entry for future grant beneficiaries, the EIC has tried to develop new strategies for improvements but such measures have so far only increased the burden on both SME's and evaluators (i.e. additional pitch interviews, financial documents, pitch deck, etc.).

Even the new progressive changes introduced for the EIC Accelerator in 2021 are adding a third evaluation step to the process which significantly increases the applicant's skill-set-requirements (i.e. writing, speaking and video production) and workload not only for the proposal preparation but also for the planning of this complex procedure (read: 2021 Application Process). From the perspective of the European Union (EU), it is in a double bind since a more complex process will always present a barrier for great companies that want to focus on product developments rather than content production while an oversimplified process will increase the risk of miss-funding unsuitable projects.

Attempting to optimize such a high-stakes process is difficult since, for example, a 30-page proposal will always exhibit a high information density because the grant financing is just too competitive too not utilize the maximum space available. If the rules state that a 30-page application can be prepared, then this maximum will always be the norm and if restrictions are not enforced (i.e. font-size, margins, using the annexes for content) then it will always be difficult for innovative start-ups and SME's to compete with professional grant writers.

The Evaluation Process

So far, the EIC is adding more and more layers to the application process (i.e. interviews in 2018 and a pre-application in 2021) but this will make it harder for applicants and not easier. The more layers there are to pass through, the less confidence startups will have in their success and the more discouraged they will be to apply in the first place. The fewer steps an applicant is presented with, the more beneficial it will be for them but it will also present a challenge to the evaluations since it is difficult to fully assess a project with less information.

A Linear vs. Convergent Process (Knock-Out Elimination)

In 2020, each written application was evaluated in isolation until the final pitch interview where approximately 25% to 50% of applicants were selected from a pool of presenters by a jury. This process can be viewed as a linear proposal evaluation for step 1 (i.e. written applications are graded individually, then ranked) and as convergent for the step 2 pitch (i.e. the best will win in comparison). The convergent part was only introduced recently but it displays an interesting approach for what the EIC Accelerator could look like in the future whereas it can be feasible to compare projects quickly rather than aiming to evaluate them individually.

The EIC Accelerator could create an evaluation process with elimination rounds where a certain budget is agreed upon for specific categories (i.e. energy, health, space, etc.) and the applicants can then apply to such specific calls whereas their proposals are randomly matched with other applicants to identify superior projects. Just like the current method, evaluating applications in such a way has its limitations and potential problems (i.e. unfair matching, bad luck) but it would be much faster for the evaluators and could also reduce the time invested in proposal writing.

Most prominently, a convergent approach fixes one of the core issues for the evaluation process:

Instead of identifying which project is 'worthy' of funding (i.e. too many applicants are), the EIC can directly identify the companies that are 'more worthy' without wasting the time of the applicants.

Currently, the EIC is spending a lot of time and resources on assessing the worth of each individual company but, in the end, the relative worth is all that matters (i.e. as seen in the pitch interviews). A convergent process with knock-out elimination-rounds is an evaluation that keeps the end in mind and reduces needless assessments which are not providing any feedback to rejected companies anyways.

A single knock-out round would reduce the number of applicants by 50% (i.e. 6,000 to 3,000) while a second round would reduce it towards 25% (i.e. 6,000 to 1,500). Variations can also reduce these numbers faster when 3 projects are compared in one round, yielding 33% (i.e. towards 2,000) and 11% reductions (i.e. towards 667), respectively.

This article continues in Part 2 (see also: Part 3 & Part 4).

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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