EIC Accelerator first full-application cut-off: demand outstrips supply

The European Innovation Council's Accelerator scheme opened short applications on 9 April 2021. By the first full-application cut-off on 16 June 2021 the programme had received a strong response. More than 2,000 start-ups and SMEs submitted short applications on a continuous basis. Of those, 801 progressed to submit full applications for this cut-off. The scale of demand is significant and raises immediate questions about how the EIC will prioritise between many high quality but budget-constrained proposals.

Raw figures from the 16 June 2021 cut-off

What applicants sought and where the pressure is

The 801 full applications together requested nearly five times the EIC Accelerator budget for 2021. The equity component alone accounted for about €3.2 billion. Most applicants chose blended finance, combining a grant and an equity investment. From a programme design perspective this is important because blended offers are intended to bridge the gap between early grants and private funding. It also concentrates pressure on the EIC Fund and any co-investors because equity commitments are large relative to the available budget.

Thematic breakdown and demand signals

Submissions were spread between the Open call for any breakthrough technology and the strategic thematic strands. For this cut-off 375 applications went to the Open call. The remaining concentration was split between Strategic Digital and Health technologies with 223 applications and Green Deal related innovations with 203 applications. That distribution signals continued investor and applicant interest in digital health and climate related solutions. It also reflects the EIC's strategic steer in its 2021 work programme to prioritise health, digital and Green Deal funding.

Evaluation pathway and timeline

Proposals from the 16 June cut-off were passed to independent experts for remote evaluation. Successful proposals from the remote stage will be invited to pitch to a Jury of investors and business experts in September. Results were expected in October 2021. Companies recommended for equity during the EIC jury process are intended to move directly to the EIC Fund for investment negotiations and due diligence.

Practical guidance issued to applicants

EIC published practical tips for future applicants alongside the cut-off statistics. Key operational points from the agency are: short applications can be submitted at any time as there are no cut-offs for the short form; the EIC AI platform includes new functionalities to assist applicants; the guide for applicants and FAQs had been updated; the next full-application cut-off was scheduled for 6 October 2021 and new applicants were advised to submit short applications in July or August to allow about four weeks for assessment before preparing a full proposal. Further cut-offs were expected to be announced later in the Autumn.

Background on funding instruments and support

Under its 2021 rules the EIC Accelerator offers grants of up to €2.5 million together with equity investments via the EIC Fund that can range from €500,000 to €15 million. Beyond financing the EIC provides Business Acceleration Services to awardees. These services include access to coaches, mentors, corporates and investors and are intended to increase the commercial readiness and investor readiness of supported firms.

What this data implies and a cautious assessment

The headline number is straightforward. Demand far exceeded supply. Applicants requested €4.85 billion while the EIC Accelerator budget for 2021 was approximately €1.1 billion. That mismatch means many proposals that score highly will not be funded purely for budgetary reasons. The equity requests are particularly notable because they point to a need for the EIC Fund to leverage co-investment. The EIC reports that it expects its co-investment activity to help mobilise private capital but the timeline and mechanics of achieving meaningful leverage across this pipeline remain challenging.

A few practical risks and open questions deserve attention. First, high volumes of blended finance requests create pressure on the EIC Fund to complete due diligence and to find co-investors for many small deals at a similar time. Second, the aggregate equity requested greatly exceeds the EIC Fund's immediate internal capacity which means co-investment and private partner attraction will be decisive. Third, many good projects will receive Seals of Excellence and then face the uncertain market task of converting that label into funding in national or private channels. Finally, administrative complexity and the speed of evaluations can favour teams with existing fundraising experience and preparation resources, which risks disadvantaging less well resourced but technically promising teams.

How to read the EIC numbers in the wider EU innovation context

The EIC Accelerator is part of a broader European effort to plug the so called 'valley of death' between research and commercialisation. It sits alongside national innovation supports, structural funds and private venture capital. The structural uniqueness of the EIC is its ability to combine grants with direct equity and to use the EIC brand to attract co-investors and corporate partners. That combination is potentially powerful but it also requires tight operational capacity and strong pipeline management to turn applications into investments and scaling outcomes.

Policymakers and stakeholders should watch whether the EIC Fund can convert recommendations into executed deals and whether Seals of Excellence are effective in smoothing access to alternative funding. For applicants the current environment means they should not rely on EIC funding as the only route to scale. Candidates should prepare hybrid plans that combine public grants, venture capital, strategic corporate partnerships and revenue strategies.

Practical next steps and advice

If you plan to apply to the EIC Accelerator or are in the earlier short application stage follow the EIC’s guidance. Submit a short application early to receive an assessment and coaching. Use the EIC AI platform and the updated applicant guide. Prepare a clear investor pitch and a robust financial plan that explicitly considers follow-on financing. If you receive a Seal of Excellence, treat it as a useful but not decisive signal and proactively engage national and private funders.

Bottom line

The first full-application cut-off for the EIC Accelerator generated strong demand and illustrates both the need and the scarcity of later-stage deep tech capital in Europe. The EIC is positioned to be a key actor in closing that gap but the volumes of requested grant and equity support mean the programme will have to ration resources. For many promising start-ups the EIC route will be one of several concurrent financing pathways. Observers should watch how the EIC Fund scales its investment operations and whether the Seal of Excellence proves effective in steering alternative funding to high quality projects.