EIC signs 100th Accelerator grant as backlog eases but investment delays remain
- ›The European Innovation Council has signed its 100th Accelerator grant agreement, marking progress after a backlog caused by restructuring of the EIC Fund.
- ›EISMEA has now signed most grant-only and grant-first contracts from June and October 2021 cut-offs and made pre-financing payments.
- ›Companies receive the first grant payment within 10 days of signature but equity investments remain delayed pending appointment of an external EIC Fund manager.
- ›The European Investment Bank is conducting due diligence as investment advisers, which should speed decisions once the fund manager is in place.
- ›The EIC is continuing non-financial support through Business Acceleration Services and a dedicated initiative to help Ukrainian deep tech start-ups.
EIC signs 100th Accelerator grant as backlog eases but investment delays remain
The European Innovation Council announced on 15 September 2022 that it has signed the 100th grant agreement under the EIC Accelerator. The milestone follows months of delays caused by the restructuring of the EIC Fund required under Horizon Europe rules. The EIC and the European Innovation Council and SMEs Executive Agency, EISMEA, say they have reduced the time between selection and contract signature for many applicants. However the equity side of the Accelerator support is still being finalised pending appointment of an external fund manager and completion of due diligence.
Why there was a backlog and what changed
When the EIC Accelerator launched in March 2021 it offered a combination of grants, blended finance and equity to help Europe’s deep tech start-ups scale. The EIC Fund had to be restructured to comply with Horizon Europe legal provisions. That administrative restructuring slowed implementation. EISMEA and the Commission say they have taken steps to fast track grant implementation and to make sure delays do not repeat. The agency reports significant improvements in signing grant agreements and making pre-financing payments to selected companies.
What has been signed so far
EISMEA reports that most of the grant components from early cut-offs are now contractually concluded and pre-financing payments made. The agency says it has improved processing times and that companies receive the first payment within 10 days after signature of the grant agreement.
| Cut-off | Companies selected | Grant-only / grant-first signed | Blended finance grant component signed | Equity/investment status |
| June 2021 | 63 selected (full applications) | All 59 projects with a grant component signed and pre-financing paid | 30 companies requested blended finance; all grant components signed | 30 blended cases plus 4 equity-only: most investment agreements expected to be signed by year end |
| October 2021 | 99 selected | 29 companies requested grant-only or grant-first; all these contracts signed and pre-financing paid | 29 of 61 blended projects signed grant component | 1 investment decision taken; further investment agreement signatures expected |
| March 2022 | 74 selected | 36 requested grant only or grant first; first 2 grant contracts signed (one with pre-financing paid) | 38 requested blended finance or equity only | Due diligence and negotiations ongoing; equity finalisation expected from autumn 2022 until early 2024 |
| June 2022 | 986 full applications submitted | Evaluation at jury interview stage; results expected in October 2022 | — | — |
Payments, timelines and what companies are actually receiving
EISMEA says it has accelerated grant signature and pre-financing. Once a grant agreement is signed, the agency reports that companies receive their first payment within 10 days. For the June 2021 cut-off all grant pre-financing payments had been made. For October 2021 all grant-only and grant-first recipients have received pre-financing. For the March 2022 cohort most grants are expected to be implemented within 5 to 8 months after selection, while equity closings are likely to take longer.
Investment component and the EIC Fund
The equity side of the Accelerator is still constrained by the EIC Fund restructuring. The European Investment Bank is conducting due diligence in its role as investment adviser. The Commission says that once an independent external fund manager is appointed, that manager will make final investment decisions and that the backlog of pending investments should accelerate. The first EIC Fund investment under the fully fledged arrangements was announced in June 2022 when SiPearl received a grant and a €15 million equity commitment. The EIC says other investments will follow.
Scale and demand for the Accelerator
Since launch in April 2021 the EIC Accelerator has attracted heavy demand. The programme has processed over 7,200 short applications and nearly 4,000 full applications to regular cut-offs. The full application volumes per cut-off were 805 for June 2021, 1,098 for October 2021, 1,091 for March 2022 and 986 for June 2022. The next full application cut-off at the time of writing was 5 October 2022.
EIC non-financial support and Ukraine initiative
The EIC also emphasises Business Acceleration Services that offer coaching, mentoring, investor and corporate matchmaking, trade fair support and other services. The agency is preparing its annual conference, the EIC Summit, and is continuing targeted support for Ukraine. The EIC has launched a €20 million action to support at least 200 Ukrainian deep tech start-ups with grants of up to €60,000, plus non-financial advisory and matchmaking. The EIC also appointed a Ukraine-based ambassador to liaise with the local ecosystem.
State of play note dated 8 September 2022
The EIC published a more detailed status update on 8 September 2022. It repeated that June 2021 grant components have been fully signed and pre-financed. It noted the October 2021 cohort had 5 grant-only projects with United Kingdom beneficiaries rejected because association agreements under Horizon Europe were not in place. The update said that grant components for October and many blended projects had been signed and that the equity component closures were progressing through due diligence.
Analysis and remaining risks
The EIC has moved decisively to unblock grants and to get cash to companies. Getting pre-financing into companies within ten days of signature is a meaningful operational achievement. But equity is inherently slower than grants because of valuation and investor governance steps. The programme remains vulnerable to further delays until an external EIC Fund manager is in place and familiar processes are operating at speed.
Other risks are administrative and geopolitical. For example some UK beneficiaries were excluded from October 2021 grants because association arrangements with Horizon Europe were not finalised. That demonstrates how EU legal frameworks and international agreements can directly affect innovator access to funding. High application volumes also put pressure on evaluator pools, contracting teams and due diligence resources.
What to watch next
Key near term items to monitor are the appointment of the external EIC Fund manager, the pace of investment agreement signatures for blended and equity-only cases, and the formal results of the June 2022 cut-off interviews which were due in October 2022. The way the EIC turns pilot arrangements into a stable, timely investment platform will be decisive for Europe’s ability to support deep tech scale-up at speed.
| Quick timeline | Milestone |
| March 2021 | EIC Accelerator launched |
| June 2021 cut-off | 63 full applications selected. All 59 projects with grant components signed and pre-financed. |
| October 2021 cut-off | 99 selected. Grant-only and grant-first contracts signed for those eligible with pre-financing paid. 29 blended grant components signed. |
| March 2022 cut-off | 74 selected. First two grant contracts signed. Most grants expected within 5-8 months, equity closures into 2023 and early 2024. |
| June 2022 cut-off | 986 full applications. Jury interviews under way with results expected in October 2022. |
| June 14, 2022 | First major EIC Fund equity investment under restructured arrangements announced for SiPearl. |
| September 15, 2022 | EIC announces signature of 100th Accelerator grant agreement |
Practical notes for applicants
Applicants invited to prepare full proposals can request an EIC business coach to support Step 2. Companies should ensure they have the required EU Login and Participant Identification Code ahead of submission. If a proposal is selected, expect separate contractual tracks for grant and equity components. Grants are handled by EISMEA. Equity involves the EIC Fund, the EIB as adviser and eventually an independent fund manager or co-investors.
Concluding perspective
Signing the 100th grant agreement is a visible sign that EISMEA and the Commission have been able to catch up on grant contracts after the operational bottleneck created by the EIC Fund restructuring. There is still work to do on accelerating equity investments and on avoiding future legal and administrative frictions that can slow funding to fast-moving start-ups. For Europe’s deep tech scale-up ambitions the combination of rapid grant disbursement and timely equity follow-on will be critical. The EIC has shown progress on one side of the ledger. The other side remains a test of institutional capacity and of the new EIC Fund arrangements.