EIC Accelerator awards major funding to 74 European deep tech start-ups amid lingering implementation risks
- ›The European Commission selected 74 start-ups and SMEs in the first 2022 EIC Accelerator cut-off to receive up to €382 million in combined grants and equity.
- ›The cohort was chosen from 1,093 full applications with 266 companies interviewed by investor and entrepreneur juries.
- ›Most beneficiaries asked for equity or blended finance and will receive grant payments within months while equity investments are expected to be finalised in autumn.
- ›The selection spans 18 countries with 12% coming from Horizon Europe widening countries, and unsuccessful interviewees may receive a Seal of Excellence to help find alternative funding.
- ›Implementation risks remain because of earlier delays and the need to finalise EIC Fund structures and external management contracts.
EIC Accelerator awards major funding round to 74 high potential deep tech start-ups
On 7 June 2022 the European Commission announced that 74 innovative start-ups and small and medium enterprises were selected under the European Innovation Council Accelerator first cut-off of 2022. The chosen companies will share up to €382 million delivered as a mix of grants and equity investments. The selection came from a large pool of applicants and was the result of multi-stage evaluation including remote assessments and live jury interviews.
Scale of the call and selection outcomes
The March 23, 2022 cut-off attracted major interest. A total of 1,093 organisations submitted full applications. Independent panels interviewed 266 companies and ultimately 74 were invited to receive funding. The selected companies represent 18 countries across the European Union and associated countries, with around 12 percent originating from Horizon Europe so called widening countries that historically have lower research and innovation performance.
| Metric | Value | Notes |
| Full applications to March 2022 cut-off | 1,093 | Applicants had already passed an earlier short application or fast track assessment |
| Companies interviewed by juries | 266 | Live interviews with investors and entrepreneurs |
| Companies selected for funding | 74 | To receive a combination of grants and/or equity |
| Total potential support announced | Up to €382 million | Combination of grants and EIC Fund equity investments |
| Maximum support per company | Up to €17.5 million | Reflects the blended ceiling combining grant and equity |
| Geographical spread | 18 countries | Includes widening countries at 12 percent |
How the funding is structured
The EIC Accelerator mixes non-repayable grants and equity investments via the EIC Fund. Under Horizon Europe the standard offer is a grant of up to €2.5 million combined with EIC Fund investments typically ranging from €0.5 million to €15 million. For some projects of strategic importance higher investments are permissible. The announced cohort was requested largely for equity or blended finance. In practical terms this means most companies will receive grant pre-financing shortly while the equity due diligence and signature processes run on a longer timeline.
Timeline and implementation caveats
According to the Commission the majority of these companies will receive grant financing within two to three months following contract finalisation. The equity components will typically be finalised in the autumn. The timing remains conditional on administrative steps, due diligence and the EIC Fund's operational arrangements. The Commission acknowledged earlier delays in finalising contracts and investments for companies selected in 2021 and said it is working to clear that backlog. The pace of equity signings depends in part on concluding negotiations with an external fund manager for the EIC Fund, a procedure that has been under active discussion.
That practical sequencing matters. Grants are fungible and can be used to advance technology and secure early customers. Equity investments, however, require detailed legal, financial and technical checks and are more exposed to timing risk. For deep tech ventures long delays between selection and investment can force companies to seek bridge financing, dilute founders or slow product development.
Representative projects in the selected cohort
The selection includes companies developing products across healthcare, energy, food, mobility and photonics. The European Commission highlighted a handful of examples which illustrate the portfolio tilt toward deep tech and mission oriented projects.
| Company | Country | Technology focus |
| Seven Sense | Estonia | Wearable telehaptics to improve mobility for blind and visually impaired users |
| I-CREATE (Tilt Biotherapeutics) | Finland | Oncolytic immunotherapy targeting ovarian, head and neck and lung cancers |
| LAYER (Dracula Technologies) | France | Organic photovoltaic module generating energy from ambient light |
| Magrail (Nevomo / formerly Magrail) | Poland | High speed frictionless levitating trains adapted for conventional tracks |
| Mushlabs | Germany | Biotechnology for protein-rich food ingredients using mushroom mycelium |
| Seawei Project, Seaborg | Denmark | Compact molten salt reactor for clean nuclear energy |
These projects are illustrative rather than exhaustive. The full selection covers a wide set of technologies including quantum, advanced materials, medtech, climate technologies and software for industrial and health applications.
Context in the wider EIC and Horizon Europe pipeline
The EIC Accelerator is one strand of the European Innovation Council which in 2022 planned significant resources for breakthrough innovation. Since the EIC was relaunched under Horizon Europe in March 2021 more than 6,000 start-ups and SMEs registered their ideas and nearly 3,000 submitted full applications across the instrument variants. The March 2022 cut-off participants join the 164 companies selected by the EIC in 2021.
Demand remains strong. For the March cut-off EIC applicants requested about €6.4 billion in total support with €4.1 billion earmarked for equity investments. The 2022 EIC Accelerator work programme budget was roughly €1.16 billion for that year and included earmarks for priorities such as technologies linked to strategic autonomy and the Fit for 55 climate objectives. The programme also continues to encourage applications from companies supported by EIT Knowledge and Innovation Communities through a Fast Track routing that reduces administrative overhead.
Risks, limits and what to watch next
The announcement is unambiguously positive for the selected companies and for European deep tech visibility. At the same time there are persistent implementation risks and structural limits policymakers and beneficiaries should watch. First, earlier delays in delivering grant pre-financing and equity in 2021 mean operational bottlenecks can materially affect company timetables. Second, an announcement of potential funding is not the same as a legally binding contract. Contract negotiations, compliance checks and due diligence can change terms or timelines. Third, the EIC Fund's capacity to co-invest and to attract private coinvestors will determine whether these projects receive the full amount of capital needed to scale. Finally, while the Seal of Excellence helps unsuccessful candidates, securing private follow-on finance remains challenging for very high risk deep tech ventures.
For observers of the EU innovation landscape the key issues are whether the EIC can convert selection decisions into timely cash and governance support and whether the combination of grants and equity will meaningfully reduce risk for private investors. The leverage effect of EIC equity depends on the EIC Fund execution model and the broader venture market appetite for long horizon deep tech investments.
Practical next steps for applicants and other start-ups
Companies can submit short applications to the EIC Accelerator at any time via the EIC platform. Short applications are intended to be fast screened within about four weeks. Successful short submissions are invited to prepare full applications for regular cut-offs. In 2022 the next full application cut-off dates were scheduled for 15 June and 7 October. Applicants should also consider national and regional funding channels, particularly those that accept Seal of Excellence holders or provide complementary co-financing.
For start-ups evaluating the EIC route, it is important to plan for timing uncertainty, to align grant milestones with private fundraising needs and to use business acceleration opportunities to engage potential corporate and investor partners early.
Bottom line
The June 2022 EIC Accelerator selection is a significant inflow of public capital into European deep tech start-ups. It demonstrates strong demand and a pipeline of ambitious projects across the EU. Translating these selections into effective scaling outcomes will depend on timely implementation of grants, the EIC Fund's ability to execute equity investments and the willingness of private investors to follow. The announcement is promising but not a final measure of impact. The coming months will show whether the EIC can deliver capital and partnership at the speed high risk deep tech companies require.