EIC Fund’s rise in Europe’s VC tables and what it actually means
- ›In 2023 the EIC Fund ranked among the most active tech investors in Europe by deal activity and by amount invested, according to Sifted and PitchBook snapshots.
- ›The EIC Fund pairs equity investments with EIC Accelerator grants in a blended finance model that targets deep tech start-ups.
- ›Equity checks typically range from EUR 500,000 to EUR 15 million per company while EIC Accelerator grants can reach EUR 2.5 million.
- ›The Fund is run by an external AIFM and advised by the European Investment Bank, raising questions about public risk, transparency and measures to protect EU strategic interests.
EIC Fund’s rise in Europe’s VC tables and what it actually means
The European Innovation Council Fund has been prominent in trade press and rankings since 2021. In mid 2023 several industry trackers put the fund among the most active investors in Europe by number of transactions and by volume of capital. That attention reflects an intentional shift by the European Union to use blended public finance to close gaps in the financing chain for high risk, technology intensive companies. The headlines are easy to read but the reality is more layered. The EIC Fund is an unusual public sector investor operating in a private markets environment, and the metrics used in press rankings measure activity rather than long term returns or social impact.
What the rankings actually reported
In the second quarter of 2023 Sifted listed the EIC Fund as the fifth largest tech investor in Europe by activity for that quarter. Sifted also put the EIC Fund at the top of its list of the 10 most active “tech‑bio” investors in Europe. PitchBook snapshots for Q2 2023 placed the EIC Fund second among European VC investors by activity and 15th worldwide when filtering for venture firms. These placements reflect deal counts and amounts invested during specific calendar periods rather than measures of realised returns or exits.
| Source & metric | EIC Fund placement | Notes |
| Sifted Q2 2023 (tech deals) | 5th largest tech investor in Europe | Quarterly snapshot of deals and amounts |
| Sifted Q2 2023 (tech‑bio) | 1st most active tech‑bio investor in Europe | Counts activity in life sciences and biology related investments |
| PitchBook Q2 2023 (venture firms) | 2nd in Europe, 15th worldwide | Ranking depends on chosen filters and definition of investor universe |
| EIC Fund cumulative since 2020 | 268 investments approved, total €1.407 billion | 147 investment agreements signed as of July 2023 |
How the EIC Fund operates in practical terms
The EIC Fund is the equity arm paired with the European Innovation Council Accelerator grant programme. It is designed to provide patient capital to early stage deep tech companies that the private market finds too risky or capital intensive. The setup mixes EU grant financing and an equity or quasi‑equity investment component under a blended finance approach. Operational responsibility for investment decisions rests with an external alternative investment fund manager, while the European Investment Bank acts as investment adviser.
Key operational points from public EIC documents and investment guidelines
| Item | Public figure or process | Comment |
| EIC Fund total envelope (2021–2027) | €4 billion | Allocated across Horizon Europe compartment and specific implementation rules |
| Typical equity ticket | €500,000 to €15 million | Higher amounts possible when justified and authorised |
| EIC Accelerator grants | Up to €2.5 million per company | Grants can cover up to 70% of eligible costs for pre‑TRL9 activities |
| Cumulative approvals (to July 2023) | 268 approvals totalling €1.407 billion | 147 companies had signed investment agreements by July 2023 |
| Leverage aim | EIC states it can crowd in €3.5 for every €1 invested | This is a target and a reported outcome metric for some periods not a guaranteed multiplier |
| Investment decision authority | External AIFM (Alter Domus) | EIB provides due diligence advice; Commission authorises award decisions |
| Selection route | EIC Accelerator application and jury process | Applicants submit short proposal with video pitch; if selected they prepare a full application and may be invited to interview |
Application and selection, simplified
Selection is competitive and uses external experts and juries. The investment component is subject to further due diligence by the EIB and by the External AIFM before finalisation of any equity agreement.
Examples from the EIC portfolio and what to watch
The EIC Fund has co‑invested in companies across a range of sectors, from quantum computing to clean energy and health. Publicly cited names include Pasqal, Modvion, Ganymed Robotics, Brite Solar, Qarnot Computing, Hardt Hyperloop, ATXA Therapeutics, Brevel, SONIO, Xeltis and Cellevate. These examples show breadth but not uniform outcomes.
| Company | Sector | Publicly disclosed EIC involvement |
| Pasqal | Quantum computing | Beneficiary of EIC grant and EIC Fund co‑investment; reported Series B of €100m with EIC Fund participation (public reports indicate approx €19.5m investment) |
| Modvion | Wind power hardware (wooden towers) | EIC Fund approved an investment of €2.4m; EIC BAS support for investor outreach |
| Ganymed Robotics | Surgical robotics | EIC Fund committed €10m in a Series B round; part of blended financing narrative |
| Brite Solar | Advanced solar materials | EIC Fund participated with €1.2m in a Series A round of €8.6m |
| Qarnot Computing | Distributed cloud HPC and low carbon compute | Named as an EIC Fund portfolio company in EIC communications |
| Hardt Hyperloop, ATXA Therapeutics, Brevel, SONIO, Xeltis, Cellevate | Various deep tech and health | Listed in EIC communications as Fund recipients or portfolio companies |
Governance, safeguards and legal constraints
The EIC Fund is managed operationally by an external AIFM. The European Investment Bank acts as investment adviser for the equity component and the EISMEA runs the Accelerator grant instrument and coordinates grant and equity pieces. The Commission issues award decisions that can condition investments in ways intended to protect EU strategic interests. Investment Guidelines published by the Commission set out restrictions, eligible stages, “buckets” of investor readiness and detailed due diligence requirements.
The Investment Guidelines include exclusions and compliance checks. These cover sanctions screening, anti money laundering, tax and corruption exclusion criteria and an obligation to avoid sectors flagged under ethical rules in Horizon Europe. Contracts and public disclosures are used to provide transparency about portfolio holdings but some commercial details remain confidential for reasons of market sensitivity.
What the EIC Fund’s activity does and does not prove
High activity in deal tables shows that public money is being deployed at scale into risky technology ventures. That is, in itself, neither proof of success nor of harm. Activity metrics count how many checks are written and their size over a period. They do not show whether the investments produce commercial exits, long term jobs in the EU, or systemic changes in the private capital market. Independent assessment of returns, follow‑on private capital secured and socio‑economic outcomes will be necessary to judge the Fund’s effectiveness over time.
Practical implications and caveats for stakeholders
For entrepreneurs: the EIC route can provide a potent combination of grant and long horizon capital plus access to networks and procurement pathways. The trade off is greater public sector involvement and compliance obligations that can affect exit options. For private investors: co‑investment opportunities can be attractive since the EIC Fund may act as a signal and de‑risker. Yet private investors should still perform their own independent diligence and be mindful of governance terms attached to public co‑investment. For policymakers and citizens: the Fund represents a deliberate industrial policy tool. That role requires robust oversight, clear benchmarks for success and transparency on the public money deployed and the public returns expected.
Risks to track include the potential for market distortion if public investment displaces private capital that would otherwise have funded the business, conflicts between public policy objectives and investor profit motives, and the risk that information about investors or beneficial owners could expose EU initiatives to geopolitical complications. The EIC rules reflect awareness of those risks with compliance and exclusion clauses, and with a structure that gives the external AIFM final authority over investment and exit decisions.
Bottom line
The EIC Fund has quickly become a visible actor in Europe’s venture landscape by volume and deal count. That visibility signals an active attempt by the EU to address the financing gap faced by capital intensive deep tech ventures. Rankings that put the EIC Fund near the top of European investor lists describe activity not investment performance. The Fund’s true test will be whether the public capital it commits leverages sustainable private follow‑on funding, delivers innovation that generates durable European economic value and respects the transparency and governance expectations that should accompany public investment in private markets.
Selected sources and further reading
Public EIC and EISMEA pages on the EIC Fund, EIC Accelerator and Business Acceleration Services, the EIC Fund Investment Guidelines (Horizon Europe compartment), Sifted and PitchBook coverage of Q2 2023 investor rankings, and company announcements from portfolio firms such as Pasqal, Modvion, Ganymed, Brite Solar and Qarnot Computing. For legal and procedural details see Horizon Europe regulation and the EIC Investment Guidelines.