The European Innovation Council (EIC) Fund, the venture investment arm of the European Innovation Council, has made remarkable strides in supporting breakthrough technologies and innovations. In just over a year of its operation, the EIC Fund has approved nearly €1 billion in investments in deep tech companies. This significant milestone not only showcases the fund’s commitment to fostering European deep tech entrepreneurship but also positions it as the preferred investor for innovative start-ups and SMEs.
Investment Process:
Under the EIC programme, companies undergo a rigorous evaluation process by external experts and thorough due diligence by the European Investment Bank, serving as the investment adviser to the EIC Fund. Once approved, companies have up to 12 months to secure co-investors with the support of the EIC. Notably, 71 companies have already accomplished this, attracting co-investments worth three times the amount of EIC Fund investments. Moreover, these companies receive grant support of up to €2.5 million, along with access to expertise, partnerships, and market opportunities through the EIC business acceleration services.
Success Stories:
Several promising companies have benefitted from EIC investments, driving innovation across various sectors:
1. Quandela (Palaiseau, France): A leading player in quantum photonics, Quandela develops full-stack optical quantum computers, available both on cloud and on-premises. Recently, they secured €50 million from various investors, facilitating international expansion and industrial development.
2. Microsure (Eindhoven, The Netherlands): Renowned in the field of robot-assisted micro-surgery, Microsure received €38 million to finalize the development of its groundbreaking microsurgical robot for clinical studies.
3. MeThinks AI (Barcelona, Spain): Specializing in early detection and management of acute stroke patients using artificial intelligence, MeThinks AI recently secured €2.5 million in convertible loans to prepare for the upcoming investment round.
EIC Accelerator Call and Future Prospects:
In a recent announcement, the EIC revealed that an additional 47 companies have been selected for EIC support through the latest EIC Accelerator call, amounting to €349 million, with €236 million designated for investments via the EIC Fund. This achievement brings the total number of companies supported by the EIC Accelerator since its launch under the Horizon Europe program in 2021 to 493. Notably, more than a thousand companies submitted proposals for the latest EIC Accelerator cut-off, intensifying the competition for selection.
Background and Objectives:
The EIC Accelerator program combines grants of up to €2.5 million with equity investments ranging from €0.5 to €15 million or more through the EIC Fund. Additionally, recipients benefit from various business acceleration services that provide access to expert knowledge, corporate partnerships, investors, and ecosystem actors. Start-ups and SMEs can apply to the EIC Accelerator at any time, with successful applicants moving on to prepare comprehensive applications for submission during regular cut-off dates.
The EIC Fund operates across all technologies and verticals in EU countries and countries associated with Horizon Europe. Its independent management seeks to fill a crucial financing gap by supporting companies in developing and commercializing disruptive technologies. By fostering co-investments and follow-on funding, the EIC Fund helps mitigate risk and build a broad network of capital providers and strategic partners.
The European Innovation Council Fund’s achievement of approving nearly €1 billion in investments for deep tech companies exemplifies its pivotal role in driving Europe’s innovation agenda. Through its comprehensive support system, the EIC Fund continues to empower start-ups and SMEs, spurring economic growth and propelling European deep tech entrepreneurship. As the EIC Accelerator program heads towards its next phase, it remains dedicated to identifying and nurturing top-tier innovators, further fueling the transformative potential of groundbreaking technologies.
Market Capital Research 