In the first quarter of 2023 the EIC Fund has become the biggest venture capital investor in European deals measured by amount invested, and third in number of deals. Since its launch in 2020, the European Innovation Council Fund (EIC Fund) has approved altogether 268 investments into deep-tech companies for a total of €1.407 billion. 147 of those companies have already signed their investment agreements. These companies are pioneering start-ups that are poised to bring breakthrough innovations to citizens and businesses working in the field of information and communication technologies, biotechnology, healthcare, energy, space, agriculture and more.
The EIC Fund managed to overcome the backlog that came with the process of appointing of an external fund manager in September 2022. Since then, it has approved a total of 128 investments in deep-tech companies worth over €772 million, supporting high-risk start-ups to bring their innovative technologies to market and scale up in strategic areas for Europe.
Since its restructuring in September 2022, the EIC Fund has approved a total of 128 investments for deep-tech companies, worth over €772 million, supporting high-risk start-ups to bring their innovative technologies to market and scale up in strategic areas for Europe. With this, the EIC Fund has made a significant progress in working away the backlog of equity investments.
The Fund is an important source of funding for start-ups and small businesses in Europe. The equity investments, ranging from €500,000 to €15 million per company (more in justified cases), complement the EIC Accelerator grant financing of up to €2.5 million.
Background
The external Fund Manager, AlterDomus Management Company S.A., is responsible for taking investment decisions following the rigorous selection process for the EIC Accelerator and due diligence by the European Investment Bank (EIB). Once the EIC Fund has approved the investment, the EIB, in its role of Investment Advisor, guides the work of the lawyers for each specific transaction. It leads to investment agreement, which is signed by the EIC Fund and the company. The Fund Manager follows the EIC Fund’s Investment Guidelines.
In 2023, the Accelerator offers €1.13 billion of funding in grants up to €2.5 million and equity investments from €500,000 up to €15 million (more in justified cases). €525 million is earmarked for next generation technologies in strategic areas for Europe, including: energy storage, quantum or semiconductor components, resilient agriculture, biomarkers for cancer, as well as space technologies and services.
Start-ups and SMEs can apply for EIC Accelerator funding at any time by sending a video pitch, a slide deck and responding to a short set of questions about their innovation and the team. They receive feedback within 4 weeks. If selected, they can send a full application by one of the periodic cut-off dates. The next cut-off is on 4 October 2023.
