EIC Fund injects €331 million into 42 European deep tech companies as equity arm reaches full operation
- ›The European Innovation Council Fund approved 42 new equity investments totalling €331 million, with 13 companies already signing agreements.
- ›Since the appointment of an external fund manager in September 2022 the EIC Fund has taken 77 investment decisions worth over €521 million.
- ›Equity investments range from €500,000 to €15 million per company and complement EIC Accelerator grants of up to €2.5 million.
- ›The EIC Fund is now described as fully operational after restructuring and the appointment of AlterDomus as external fund manager.
- ›The scheme remains under expert oversight from the European Investment Bank which conducts due diligence and acts as investment adviser.
EIC Fund adds €331 million in equity to European deep tech start ups
On 6 February 2023 the European Innovation Council Fund announced 42 new investment decisions into deep tech companies that together total €331 million in equity. Thirteen of those companies had already signed their investment agreements at the time of the announcement. The Commission framed the development as a milestone for the EIC Fund which it says is now fully operational after a restructuring and the appointment of an external fund manager in September 2022.
| Metric | Value | Notes |
| New investment decisions announced (since Nov 2022) | 42 | Total equity decisions reported in this update |
| Equity committed in this round | €331 million | 13 companies had signed agreements at announcement |
| Total decisions since Sep 2022 | 77 | Total equity decisions worth over €521 million after external manager appointment |
| Investment size per company | €0.5 million to €15 million | Potentially higher in justified cases |
| EIC Accelerator grant cap | Up to €2.5 million | Equity complements these grants |
| Horizon Europe grant signature progress | 269 of 378 selected companies | Grant agreements signed under Horizon Europe at time of announcement |
| 2023 EIC Accelerator funding envelope | €1.13 billion | Grants and equity available in 2023 work programme |
Portfolio highlights and technologies supported
The companies receiving investment decisions cover a broad set of deep tech areas. The press release lists examples that include advanced computer vision software and surgical robotics for orthopaedic surgeons, visual search technologies for industrial use, tissue engineering for breast self reconstruction, novel photonics systems, climate oriented food production innovations intended to reduce emissions, and a miniaturised universal gas analyser for renewable gases. These examples illustrate the EIC Fund’s remit which favours high risk projects with potentially large market or societal impact.
How the EIC Fund operates and recent structural changes
Application and selection process
Start ups and SMEs can apply to the EIC Accelerator at any time through the EIC platform. The preliminary submission includes a short pitch, a short slide deck and a video pitch together with answers to a short set of questions about the innovation and the team. Applicants were told they would receive an initial feedback within four weeks. Selected candidates then progress to a full application at periodic cut off dates for 2023 which were listed as 22 March, 7 June, and 4 October 2023.
Earlier milestones and pipeline
The EIC Fund had already begun making equity commitments under Horizon Europe before this February announcement. A November 2022 Commission communication reported 35 investment decisions totalling around €190 million. The November message named a small number of companies where agreements had been concluded earlier in 2022 including SiPearl which received the very first EIC-related investment in June 2022. Two other companies then signed agreements that were publicly highlighted. They were Apix Analytics which develops a miniaturised universal gas analyser for renewable gases and Lattice Medical which works on breast self reconstruction using patients' own tissue.
Context, questions and caveats
Public announcements present the EIC Fund as a major new channel of risk capital for Europe’s deep tech ecosystem. That is a valid position given the scale of public resources and the policy priority attached to strategic technologies. Still there are practical questions and performance metrics observers should track beyond the round totals.
What to watch next
Observers and stakeholders should watch how quickly the announced decisions translate into signed investment agreements and subsequent disbursements. The ability of the EIC Fund to crowd in private capital and to shepherd companies across the high risk valley of death will determine whether public equity produces sustained returns beyond headline totals. Regular disclosures on follow on rounds, portfolio company progress and exits will help evaluate real world impact.
For further details the Commission referenced the EIC Fund investment guidelines and public lists of beneficiaries. The original press release listed media contacts Johannes Bahrke and Marietta Grammenou as Commission spokespeople.