Update on the EIC work programme and EIC Accelerator

The European Innovation Council has published an update on the 2022 work programme and the implementation status of the EIC Accelerator and EIC Fund. The pace of equity investments in late 2021 introduced delays that required additional administrative work in early 2022. The Commission says those issues are being addressed and that the full 2022 EIC work programme will be presented on 9 February 2022.

Key dates and how to apply in 2022

The Commission announced that the EIC Work Programme for 2022 will be presented on 9 February and that an online EIC Info Day for applicants will take place on 22 February. The EIC's simplified application route remains open. Short, early stage applications can be submitted at any time through the EIC AI platform. Applicants should expect feedback within four weeks. The next cut-off date for full applications was indicated as expected on 23 March 2022. For the EIC Pathfinder, the deadline for applications was expected in early May 2022 subject to confirmation in the published work programme.

State of play for the EIC Accelerator and equity investments

The update provided granular operational detail about investments that were selected in 2021 and how they will be handled while the EIC Fund is modernised. For the 102 companies selected for equity investments in October and December 2021, grant preparations are underway and due diligence was scheduled to start shortly with a target to conclude investment decisions during spring and summer 2022. The Commission says the equity investments for those 102 companies and for cut-offs under the 2022 programme will continue to be managed through the EIC Fund until a sustainable long term solution is ready.

Operationally the EIC Fund has already finalised many steps. Of the 141 investments approved by the EIC Fund Board, 139 term sheets had been sent out and 130 of those term sheets had been signed by the companies at the time of the update. Seventy five investment agreements had been formally signed and many of those included co-investors.

Modernisation and governance of the EIC Fund

The Commission describes the current phase as transitional. The EIC Fund will continue to manage equity investments while a long term, sustainable implementation model is prepared. As one tangible step the Commission said it will imminently appoint an independent Fund Manager operating as an Alternative Investment Fund Manager or AIFM. Broader discussions are ongoing about the permanent structure for EIC equity financing and more information will be provided sufficiently in advance for applicants.

Notable examples and market signalling

The update revisited earlier EIC Fund investment examples to show how the Fund has been used to attract larger financing rounds and to support strategic technologies. The French semiconductor display company Aledia received €15 million from the EIC Fund as part of a €120 million financing round. Finnish quantum computing company IQM had €15 million pre - authorised EIC investment tied to a matched private round while IQM also previously received EIC Accelerator grant funding of €2.4 million. These announcements emphasize the EIC Fund's role in crowding in private capital on strategically important technologies.

What this means for applicants and the European innovation ecosystem

The combined grant plus equity model is a distinctive feature of the EIC and addresses a real funding gap in European deep tech. The EIC Fund’s record of attracting co-investors at a multiple of EIC capital is a positive market signal. At the same time the rolling operational changes and the need to define a long term investment framework introduce uncertainty for founders and investors. The appointment of an independent Fund Manager is progress but it does not by itself resolve questions about long term governance, reporting and the exact role of the EIC relative to private venture funds.

Risks, open questions and recommendations

The administrative delays reported in January 2022 show that blending grants and equity at EU scale is complex. Key open questions for the coming months include the exact terms the EIC Fund will use under the new manager, how decisions will be timed to avoid funding gaps for companies waiting on both grants and equity, and how transparent the EIC will be about investment terms and ownership stakes. Applicants should budget time for extended due diligence and legal negotiation and should seek independent advice when accepting quasi equity instruments. Observers should watch the published work programme on 9 February for precise cut-off dates and instrument details.

Data protection and sharing

The update reiterates standard data processing arrangements. Applications and supporting documents may be shared with evaluators, coaches, the EIC Fund and third party advisers involved in due diligence. For some services candidates must give explicit consent for data to be shared with national contact points and other public organisations. Companies should pay attention to consent requests and to the data protection notices associated with the EIC submission and IT platforms.

Sources and further reading

Primary material is published on the European Commission and EIC websites including the EIC news update of 3 February 2022, the EIC Info Day materials for February 2022, and published press releases and background materials on the EIC Fund investments. Companies and stakeholders should consult the EIC 2022 work programme once released on 9 February for the definitive rules and deadlines.