If you are considering to apply for the start-up grant by the EU, here is the most important information on how to identify a high-quality project:
(1) Hardware products: More than 60% of all funded projects are related to hardware manufacturing, followed by subscription services at only 16%. This does not exclude pure software projects but shows that hardware innovations have a better way of showing a need for funding due to high production costs. They also have an easier time to patent the solution and show the innovative nature of the project.
(2) High Value Industries: While the budget distribution in the newest installation of the SME Instrument has changed, the past data shows that the most frequently funded projects are related to healthcare, cleantech, energy, analytics and transportation.
(3) Revenue Model: B2B is by far the most sought after project type with 76% of all funded projects, followed by B2C revenue models. It is usually difficult for B2C projects to show investors any customer interest if the technology is still in the pre-commercial stage but e.g. retailer & distribution agreements can help in this regard.