Commission adopts EIC 2024 work programme with over €1.2bn for deep tech and a restructured EIC Fund

Brussels, December 12th 2023

Summary

›The European Commission adopted the European Innovation Council 2024 work programme opening more than €1.2 billion in funding.
›Funding is concentrated on SMEs and start-ups in deep tech areas such as generative AI, space, semiconductors, quantum and critical raw materials.
›The EIC Fund has been restructured and will receive a capital injection to boost equity investments in EIC-selected companies while the Commission retains policy oversight.
›The work programme introduces simplifications including lump sum funding, updated IP rules to support technology transfer offices and consensus meetings for Accelerator evaluations.
›€420 million is ringfenced for strategic technologies linked to EU priorities and applications in critical areas will be screened for foreign ownership and investment risks.

EIC 2024 work programme: what was adopted and why it matters

On 12 December 2023 the European Commission formally adopted the European Innovation Council work programme for 2024. The programme opens funding opportunities worth just over €1.2 billion. The stated priority is to channel the majority of support to start-ups and small and medium sized enterprises working on so called deep tech innovation in areas judged strategically important for EU policy and industrial resilience.

Funding architecture and headline numbers

The work programme organizes support under the EIC's core instruments and allocates specific amounts against them. It also confirms large scale capital injections and portfolio management changes for the EIC Fund to strengthen equity financing for selected companies.

Scheme	2024 allocation (reported)	Typical grant size	Investment or equity component
EIC Pathfinder	€256 million	Grants up to €4 million	N/A
EIC Transition	€94 million	Grants up to €2.5 million	N/A
EIC Accelerator	€675 million	Grants below €2.5 million	Investments from €0.5 to €15 million
EIC Fund managed investments	€405 million earmarked; additional follow-on funding noted	N/A	EIC Fund investment pool plus follow-on allocations

Across official documents the programme and press material also reference a capital injection into the EIC Fund. The press release cites a €585 million injection intended to leverage more than €2 billion in new investments. Separate work programme text references €405 million earmarked for investments to be managed by the EIC Fund and an additional €180 million for follow on investments in previously selected companies. The differences reflect how budget lines, earmarking and follow-on allocations are described in multiple documents.

Why the EIC Fund matters:The EIC Fund is the EIC’s equity vehicle for co-investing in promising start-ups and scaleups selected by the EIC. Increasing its capital and changing its governance or management arrangements is intended to improve the Fund’s ability to mobilise co-investment from private partners and to follow on into later-stage rounds for supported companies.

Strategic priorities and targeted technologies

Although most calls remain open across technological fields, the 2024 work programme sets aside about €420 million for technologies the Commission classifies as strategic. These areas are linked to existing EU policy agendas including the European Green Deal, REPowerEU, the Chips Act, the Net Zero Industry Act and preparations for the forthcoming AI Act. Named domains include generative artificial intelligence, space technology, semiconductors, quantum technologies and critical raw materials.

Economic security screening:Applications in critical areas such as AI and quantum will be subject to screening for foreign ownership and investment risks. The screening is intended to support economic security and will be applied by the EIC Fund when investments are considered. This introduces an extra compliance step for applicants and potential investors.

Simplifications and procedural changes

The EIC Board advised a set of operational changes that the work programme implements. Key procedural updates are intended to reduce administrative burden and improve evaluation robustness but will require adjustments from applicants and intermediaries.

Lump sum funding:Most EIC calls will introduce lump sum funding removing traditional detailed financial reporting for beneficiaries. The aim is to reduce administrative overhead for projects. The change shifts compliance checks towards ex post controls and may alter how projects budget and account for costs.

Intellectual property rules:The programme updates specific IP rules to give Technology Transfer Offices greater empowerment. This follows recommendations from the EIC Board and seeks to make it easier to move inventions out of research settings and into commercialisation paths. Real world impact will depend on national TTO capacity and legal frameworks across member states.

Consensus meetings for Accelerator evaluations:For EIC Accelerator applications the work programme introduces consensus meetings. These are intended to make evaluation outcomes more robust by allowing evaluators to reconcile differing views before final decisions are made.

Other changes include giving the EIC Fund flexibility to increase or delay investments so that portfolio management can better match company and market developments. EIC Transition calls are also opened to follow up results from Horizon collaborative projects in addition to prior eligible sources such as ERC Proof of Concept and EIC Pathfinder projects.

How the process works for applicants and intermediaries

The programme reaffirms the EIC operational model. Short proposals and video pitches are the entry point for Accelerator applications. Successful short proposals are invited to prepare full proposals with support from EIC business coaches if requested. Evaluations are conducted by external experts selected from a Horizon Europe experts database and successful full proposals may be invited to interviews with an EIC jury as a final selection step.

Seal of Excellence and onward support:Applicants who reach certain quality thresholds but are not funded by the EIC can agree to have their proposals or a limited data set shared with national or regional funding bodies to seek alternative financing. Applicants can also consent to share application information with Horizon Europe National Contact Points, Enterprise Europe Network members and other public organisations to access complementary services.

Operational dates and events

The Commission scheduled information events to explain the work programme. The published dates included an online information day for potential applicants on Monday 15 January 2024 and a dedicated online info session on Tuesday 16 January 2024 focusing on the Accelerator Challenges.

Governance and EIC Fund restructuring

A governance change was finalised in parallel with the work programme. The Commission transferred its shares in the EIC Fund to the European Investment Bank from 1 January 2024 on a temporary basis. The Commission states it will retain overall policy oversight of the Fund’s governance and investment policy. The restructuring is intended to provide the EIC Fund greater flexibility in portfolio management while enabling it to attract more co investors.

Capital injections and leverage claims:Official material references a capital injection of €585 million into the EIC Fund in 2024 with the expectation it will leverage in excess of €2 billion in new investment for EIC investee companies. Documents also cite €405 million explicitly earmarked for investments to be managed by the EIC Fund plus an additional €180 million for follow on investments in previously selected companies. These numbers reflect different budget lines and follow on financing commitments that are split across documentation.

Data processing, partners and safeguards

The EIC Accelerator data protection notice is detailed and extensive. It explains legal bases, partners that will process applicant data and retention rules. It names several third parties involved in handling investment and due diligence related data and sets out retention and rights provisions for applicants, evaluators, coaches and jury members.

Key third party partners named in the data notice:The European Investment Bank acts as investment adviser to the EIC Fund. Alter Domus Luxembourg performs know your company checks, valuation support and paymaster functions for the EIC Fund. Dealflow.eu assists with investor outreach, pitch preparation and complementary due diligence activities. These entities will process personal data on behalf of the EIC controllers under contractual confidentiality and data protection obligations.

Personal data categories and retention:Data collected include names, contact details, CVs and professional information for applicants, evaluators, jury members and coaches. Additional identification and contract documents may be required for interview access. Retention rules include up to 7 years for selected experts, up to 10 years for funded applicants after programme closure, up to 5 years for unsuccessful applicants, and in some cases up to 25 years for anonymised scientific or statistical research unless the data subject objects.

Use of automated tools and AI:The notice allows for the use of AI to facilitate data processing but specifies that AI will not be used to make automated decisions. Human evaluators and decision makers remain responsible for selection outcomes.

Context and implications for the EU innovation ecosystem

The EIC sits at the intersection of EU research funding, industrial policy and venture finance. The 2024 work programme reconfirms emphasis on deep tech, scaling companies and creating an EU pool of investable ventures. Updating IP rules and simplifying grant modalities are practical steps that reflect feedback from the ecosystem. Strengthened equity capacity through the EIC Fund aims to plug a persistent financing gap for later stage deep tech.

However the announcements should not be read as a guaranteed fix. Co investment leverage claims depend on private market appetite which can fluctuate. Screening for foreign ownership introduces important economic security safeguards but may complicate cross border investments and slow deal processes. The governance move that places the Commission's EIC Fund shares temporarily with the European Investment Bank centralises management but also raises questions about the balance between public policy steer and independent investment operations.

Practical takeaways for applicants and investors

Startups and SMEs planning to apply should prepare for video pitches and short proposals, secure EU Login and PIC codes and consider selecting an EIC business coach early for full proposal development. Companies in strategic domains should be ready for additional scrutiny on ownership and investment sources. Investors should note the EIC Fund’s greater flexibility and the prospect of co investment, but also expect diligence processes that involve the EIB and third party service providers.

Dates, documents and where to find more

The 2024 work programme and supporting factsheets and FAQs were published alongside the Commission decision on 12 December 2023. The Commission and the EIC run information days and maintain programme documentation on EIC and Funding and Tenders portals. Applicants should consult the official work programme documents and the EISMEA data protection notice for full operational and legal details.

Critical caveat on numbers:Official texts and press materials use slightly different formulations for allocations and injections. Applicants and stakeholders should rely on the legal texts and budget lines published in the work programme and the Funding and Tenders Portal for precise eligibility and funding rules.

Final assessment

The 2024 EIC work programme is a reaffirmation of the Commission's focus on deep tech and scaling EU startups through a mixture of grants, coaching and equity. The practical changes aim to reduce administrative load and make portfolio management more responsive. The success of the package will hinge on execution details, market co investment behaviour and how well the introduced safeguards and simplifications work in practice.