EIC Transition and ERC Proof of Concept: Infoday presentations and how the two schemes link

Brussels, April 22nd 2021

Summary

›An infoday on 29 March 2021 examined synergies between the ERC Proof of Concept scheme and the EIC Transition programme and made the event presentations available.
›Speakers from the ERC Executive Agency, DG CNECT and EISMEA explained eligibility, evaluation and funding pathways from ERC PoC to EIC Transition and Accelerator.
›EIC Transition targets technology maturation from lab proof of principle to validated prototypes with grants typically up to €2.5 million and is designed to bridge the so called valley of death.
›Applicants should be aware of eligibility windows, evaluation thresholds, Seal of Excellence rules, and the practical limits of funding for sectors such as medical devices that often need longer and costlier clinical validation.

Event and materials

On 29 March 2021 the ERC Executive Agency (ERCEA), DG CNECT and the European Innovation Council and SMEs Executive Agency (EISMEA) ran an information day that focused on how ERC Proof of Concept projects and the EIC Transition programme can be combined and sequenced. The three presenters were Laura Pontiggia from the ERCEA, Viorel Peca from DG CNECT and Keith Sequeira, Head of Unit EIC Governance and Coordination at EISMEA. The presentations from that day have been published by the organisers and are available to applicants and stakeholders.

What problem both schemes are trying to solve

Speakers framed the gap in European innovation as not a lack of frontier research but the difficulty of translating research outputs into marketable, scaled innovations. Europe produces world class science yet struggles to create the number of market creating, deep tech companies required to lead strategic technology waves. The organisers described two connected problems. First, many promising results stop at proof of principle in a lab environment. Second, there are financing and ecosystem gaps for the steps that take technology from validated lab demonstrations to market ready products.

Valleys of death:The term refers to two distinct funding gaps. The first is the gap between early research proof of principle and a prototype demonstrated in a relevant environment. The second is the gap between a market ready prototype and the significant investment required to scale up into a company with commercial traction.

How the ERC Proof of Concept scheme works

ERC Proof of Concept (PoC) is a targeted, relatively light application scheme maintained by the ERC Executive Agency to help principal investigators explore commercial or societal exploitation routes for ERC-funded research. It is a small, short instrument compared with Horizon flagship grants. Key facts noted in the presentation are that the grant is typically €150,000 for up to 18 months, calls are continuous, proposals are short and the scheme is designed to be simple and fast. Between 2011 and 2020 the PoC programme ran thousands of proposals with an overall success rate in the 2011–2020 period of around 36 percent.

ERC PoC purpose:PoC is meant to convert ERC frontier research results into a concise concept and initial validation that can support further development, spin outs, partnering or follow-up funding. It is not itself intended to finance full commercial development or late stage validation.

What EIC Transition is designed to do

EIC Transition is part of the broader European Innovation Council. The programme is the intended next rung for projects that started as frontier research and need targeted funding and business support to move from proof of concept to validation in relevant environments, typically TRL 3 to TRL 5 or 6. Transition grants are larger and can incorporate more market readiness and business development activities than PoC. The pilot experience and the 2021 work programme demonstrations were used in the infoday to explain expectations and practicalities.

Instrument	Primary aim	Indicative funding (as presented)
ERC Proof of Concept	Explore exploitation routes of ERC-funded results, short feasibility and early validation	€150,000; up to 18 months
EIC Pathfinder	Support early stage research on emerging breakthrough technologies	Grants typically up to €3–4 million per project
EIC Transition	Mature proof of principle to prototype validated in relevant environment and improve market readiness	Typical grants up to €2.5 million per project; 2021 call budgets around €100 million (open and challenges combined)
EIC Accelerator	Scale deep tech startups and SMEs through grants and equity, crowding in private investors	Blended finance: grants up to €2.5 million and equity investments up to €15 million; 2021 programme budgets in the hundreds of millions

EIC Transition role in the pipeline:Transition addresses the middle gap between research validation and investor ready scale up. It explicitly accepts proposals originated from ERC PoC, EIC Pathfinder and certain FET projects and ERANETs provided timing and eligibility rules are respected.

Eligibility and practical conditions emphasised at the infoday

The presenters made specific operational points applicants must check before applying. Transition only accepts proposals that truly build on results from an eligible project. You do not have to be the original beneficiary, but you must hold or have rights to the intellectual property or know how originating from the eligible project. There are rigid timing windows for eligibility of the originating project.

Eligible originating projects:EIC Pathfinder projects including the pilot, H2020 FET Open and FET Proactive, ERC Proof of Concept projects, and a set of ERANETs that ran under FET work programmes such as CHIST-ERA, QUANTERA and FLAG-ERA.

Timing rules for eligibility:The originating project must have a start date more than 12 months before the Transition call deadline and an end date less than 24 months before that deadline. This rule is about ensuring relevance while avoiding re-financing projects that are already mature or too recent to have produced usable results.

How Transition proposals are assessed

Evaluation combines remote expert review with a possible interview stage. The initial remote review uses three criteria with explicit thresholds. Scores from individual reviewers are aggregated and medians are used. If a proposal passes a first ranking and is within a budgetary banding it can be invited to a jury interview where a small panel assesses the project and recommends funding.

Evaluation criteria and thresholds:Excellence threshold 4 out of 5; Impact threshold 4 out of 5; Quality and efficiency of implementation threshold 3 out of 5. Criteria address technological novelty and feasibility, business and market fit, entrepreneurship and investment readiness, team quality, milestones and resource allocation.

Typical evaluation timeline (2021 process as example):Remote evaluation feedback was scheduled around 9 weeks after the call deadline. Invitations to an interview might be sent around 13 weeks with final feedback around 17 weeks. Grant agreements targeted signature within six months after the call deadline. These are illustrative timings used in the 2021 work programme and may vary in later calls.

Practical features, services and instruments that support applicants

The EIC offers Business Acceleration Services including coaching, investor matchmaking, mentoring and engagement with corporates. EIC business coaches are drawn from lists established through calls for expression of interest. The infoday explained how applicants can use coaches to prepare full applications and how the Seal of Excellence can be used to secure alternative funding.

Seal of Excellence:A label that can be issued to SME applicants who pass evaluation thresholds but are not funded due to budget limits. A Seal can facilitate access to national or regional funding. It is only issued if applicants consent to the sharing of their application data with relevant funding bodies.

Fast track to Accelerator:Transition projects may be eligible to enter the Accelerator via a Fast Track route. A Transition project review can determine whether a follow-up Accelerator application is appropriate without the applicant needing to submit an initial first stage application.

2021 call design and budgets discussed at the infoday

The EIC 2021 work programme divided funding across open calls and themed challenges. For 2021 the slides presented indicative budgets and timing. Example figures used in the infoday were Accelerator overall budgets in the order of several hundred million euros with a roughly even split between grant and equity components, Pathfinder budgets in the low hundreds of millions for open and challenge calls, and Transition budgets that together were around €100 million for open and challenge calls combined. Applicants were told to consult the published work programme and the Funding and Tenders portal for precise figures and deadlines.

2021 instrument	Call modality	Illustrative 2021 budget notes
EIC Accelerator	Open and Green Deal and strategic challenge tracks	Roughly €593 million noted for open track; multiple challenge envelopes also indicated; roughly 50:50 grant and equity mix in some lines
EIC Pathfinder	Open and targeted challenge tracks	Open track around €168 million and challenge track around €132 million in the 2021 plan
EIC Transition	Open and two specific challenge tracks in 2021	Open ≈ €60 million with additional ≈ €40 million for two challenge topics

Examples of 2021 Transition challenge subject areas

The infoday described two challenge areas used in the 2021 Transition calls to illustrate the type of topics the programme favours. One was energy harvesting and storage technologies with an emphasis on integrated solutions and longer term or seasonal storage beyond conventional lithium ion. The other was medical technology and devices where the gap between lab prototype and clinical validation is often long, costly and regulated.

Why medical technology is a special case:Speakers warned that medtech and device projects may need larger budgets and longer durations than the standard Transition envelope. Regulatory compliance, safety testing and clinical validation often push projects into timelines and cost profiles that require additional funding or a very clear staging plan.

Observations and lessons from the 2019 Transition pilot and advice from the infoday

The pilot showed clear appetite for mid-stage technology maturation funding. It revealed that consortia often need business and market expertise in addition to technical partners. Some key lessons presented were that proposals should have realistic business exploitation plans, consortia composition should reflect commercialisation needs and that certain sectors need longer timescales or greater funds. The pilot also showed proposals which had previously used Innovation Launchpad resources were often commercially stronger because they had already integrated business activities.

Good practice recommended for applicants:Assemble a motivated entrepreneur led team or collaborate with SMEs and spinouts. Set measurable milestones, include potential first customers and specify resource allocation. Be clear about IP ownership or rights to use originating project results and how you will reach investment readiness.

Governance, actors and data handling highlighted at the event

Speakers reiterated how the EIC sits inside Horizon Europe but has dedicated governance and instruments. The EIC Board and President set strategy, the EIC and SME Executive Agency manages programmes since 1 April 2021 and a dedicated EIC Fund manages equity investments. The infoday also covered practicalities such as coach selection, jury formation and the involvement of external actors such as the European Investment Bank in due diligence when equity is involved. The presentations also unpacked data handling and consent rules for sharing applicant information with national agencies and investors.

Data sharing and consent:Certain follow-on instruments and labels such as the Seal of Excellence require applicants to give consent to the sharing of their application details with national or regional funding bodies. If an investment component is active, the programme may share necessary information with investment partners. Applicants should read the data protection notices and consent statements carefully.

Where the system still faces limits and what applicants should watch for

The infoday presentations were explicit about the opportunities created by combining ERC PoC with EIC Transition but they also revealed structural challenges. The EU innovation landscape remains fragmented by region and national systems. Even with EU instruments, bridging the valley of death often requires patient capital, strong founder teams and industrial partnerships. The standard Transition envelope may be insufficient for capital intensive sectors. Administrative complexity and timing rules are potential bottlenecks for researchers seeking quick follow-on support. Finally, labels such as Seal of Excellence are helpful but do not guarantee national funding will follow.

Practical risks to mind:Timing mismatches. Insufficient budgets for clinical or industrial scale validation. Dependence on consent for data sharing which can slow or limit investor matching. Administrative burden for teams unfamiliar with venture development or procurement of external services.

How to proceed if you are an ERC PoC grantee interested in Transition

Check your project dates against eligibility windows. Confirm IP ownership or secure rights to the results you intend to use. Draft a concise plan that combines a technical maturation pathway with business and market activities and measurable milestones. Consider using an EIC business coach to prepare a full proposal. If you are in medtech, plan realistically for longer timelines and discuss potential additional funding sources early.

Practical application steps:Obtain a Participant Identification Code and EU Login. Prepare and submit proposals through the EU Funding and Tenders Portal. If successful at the short list stage or initial screening you may be assigned or select an EIC business coach to help prepare a full proposal. Successful full proposals may be invited to an interview. If selected, be prepared to negotiate grant and where applicable investment agreements and to enter due diligence for equity.

Presentations and speakers

The infoday featured three primary presenters representing the main actors: Laura Pontiggia from the ERC Executive Agency explained the PoC instrument and its statistics. Viorel Peca from DG CNECT presented aspects of transition and EIC strategy. Keith Sequeira from EISMEA explained EIC governance, the Transition pilot lessons, the business acceleration services and practicalities for applicants. The organisers have published the slide decks and materials from the infoday.

Speakers at the 29 March 2021 infoday

Laura Pontiggia, Policy Analyst at the ERC Executive Agency. Viorel Peca, Head of Unit at DG CNECT. Keith Sequeira, Head of Unit EIC Governance and Coordination at EISMEA.

Takeaways and measured perspective

The infoday reinforced that the ERC PoC and EIC Transition instruments were explicitly designed to be complementary. For researchers and technology teams that clearly meet eligibility rules and have credible paths to market readiness, Transition can provide an important next step. Applicants must however be realistic about the scale of investment required in certain domains. The EIC offers services that go beyond grants but these services do not eliminate the fundamental need for strong teams, industrial partners and follow-on private investment. The policy aim of creating smoother handovers between European research funding and market deployment is clear. Delivering that aim at scale will require sustained alignment between EU, national and private funding channels and close management of the constraints noted above.

Where to find the presentations and next steps

The infoday presentations were published by the organisers at the end of March and in April 2021. Applicants interested in applying should consult the EIC Work Programme and the Funding and Tenders Portal for precise call texts, deadlines, eligibility conditions and the relevant data protection notices. Contact points such as the EISMEA helpdesk and national Horizon contact points can provide additional, local guidance.

Contacts and support mentioned:EISMEA helpdesk for EIC calls, Funding and Tenders Portal for submissions, Horizon Europe National Contact Points and the Enterprise Europe Network for local or regional funding matching and business support. Review the published EIC data protection and EISMEA privacy notices before consenting to data sharing.