The grant and the equity contribution for the EIC Accelerator are sourced from different funds (i.e. the EC and the EIC, respectively) which means that the budget is also separated into two components. The grant will need to be defined in a budget table in Part A of the administrative forms which include the individual personnel, indirect, direct and subcontracting costs while the grant amount is defined as a maximum of 70% of the given project costs.
For example, if the total project costs for the grant-side are given as €1m then the grant contribution cannot exceed €700k. The proposal itself (i.e. Document 1) will detail the grant with respect to subcontracting, workpackage budgets and resources through a list of items including justifications. The equity financing will be requested separately as a flat sum (i.e. €2m) in the administrative forms but without any other segmentation. It will also be briefly defined in the respective equity section and in the workpackages.
In total, the overall project costs will be the sum of the grant (i.e. 70% or €700k – by the EC), the grant co-financing (i.e. 30% or €300k – by the applicant) and the equity financing (i.e. €2m – by the EIC) while the total financing requested (i.e. €2.7m) will be the sum of the grant (i.e. €700k) and the equity financing (i.e. €2m). The sourcing of the remaining 30% (€300k in this example) must be addressed in the proposal and it should be presented, in a believable way, that the expensed can be covered by revenues, investors or by other means.
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) are January 11th 2023 (only EIC Accelerator Open), March 22nd 2023, June 7th 2023 and October 4th 2023 under Horizon Europe. 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.
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by Stephan Segler, PhD
Professional 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:
- EIC Accelerator Interviews: Pitch Deck vs. Proposal Documents (SME Instrument)
- Choosing a Good Project for the EIC Accelerator (SME Instrument Phase 2)
- The EIC Accelerator Budget: Grant vs. Blended Finance (SME Instrument Phase 2)
- EIC Accelerator – Introduction and Blended Finance (SME Instrument Phase 2)
- EIC-Accelerator Writing: Providing the Missing Link (SME Instrument Phase 2)
- The Biggest Mistakes When Applying to the EIC Accelerator (SME Instrument Phase 2)
- Identifying a Broad Vision for an EIC Accelerator Project (SME Instrument Phase 2)