Demand surges for EIC Accelerator in first 2022 cut-off as Fast Track opens

The European Innovation Council Accelerator recorded strong interest in its first full-application cut-off of 2022. Over one thousand start-ups and small and medium sized enterprises submitted full proposals to the 23 March deadline. The total funding requested across those applications amounted to about €6.4 billion, of which roughly €4.1 billion was for equity investments. The submissions mix shows sustained appetite for the EIC offering but also highlights a clear mismatch between applications and available budget.

What the numbers say

The raw figures illustrate both demand and mode of financing preferred by applicants. Two thirds of applicants asked for blended finance combining grant and equity. A sizeable minority asked for grant funding only or expressed an intention to apply first for a grant and seek equity later.

Fast Track scheme and the role of EIT KICs

This cut-off is notable because it was the first to accept applicants fast-tracked by the European Institute of Innovation and Technology’s Knowledge and Innovation Communities. The Fast Track scheme lets KICs assess start-ups and scale-ups they already support and allow them to proceed directly to the full application stage of the Accelerator. The scheme is designed to reduce administrative burden and speed up the process for applicants who have already been vetted by a trusted EU innovation partner.

The Fast Track is also being opened to projects stemming from EIC Pathfinder and EIC Transition grants. That will create additional pathways from earlier-stage EU-funded projects toward the Accelerator stage where companies seek scale-up capital.

Evaluation, pitching and timeline

Submitted proposals will be reviewed by independent experts during a remote evaluation phase. Those that pass the remote stage and rank highly will be invited to pitch in front of a jury composed of investors and business experts. The timeline reported at the cut-off was for pitches in May and selection decisions to follow in June.

Proposals that clear the remote evaluation threshold and are assessed positively by the jury but cannot be funded because of budget limits receive a Seal of Excellence. The label is meant to help firms tap alternative finance sources and obtain Business Acceleration Services support.

How to apply and preparation tools

New applicants can start with a short application at any time. The EIC provides an AI-enabled platform to submit short applications, prepare full proposals and access guidance materials. Short applications are typically assessed within about four weeks and can lead to an invitation to submit a full proposal for a regular cut-off.

For 2022 the next full application cut-off dates listed at that time were 15 June and 5 October. Applicants were advised to submit short applications well in advance so that they have time to receive the short application decision and prepare the full proposal for the periodic cut-off dates.

What the Accelerator offers and 2022 budget priorities

The EIC Accelerator is aimed at start-ups and SMEs with high-impact, deep-technology innovations at Technology Readiness Levels 6 to 8. Its financial instruments include grant funding and equity or quasi-equity investments through the EIC Fund.

What to keep in mind as an observer or applicant

High application numbers demonstrate strong demand for EU scale-up capital but they do not indicate how many projects meet the high quality thresholds required for funding. The EIC has limited budget and the evaluation process is competitive. A large backlog of applications can increase the administrative burden on evaluators and lengthen time-to-decision for applicants.

There are several practical implications for applicants. Submitting a short application in good time can help secure a slot for a full proposal at a scheduled cut-off. For teams seeking equity it is important to present credible milestones and investor-readiness material because the EIC Fund undertakes due diligence when deciding on equity investments. The Seal of Excellence can be useful but it is not a substitute for active investor outreach.

Analytical perspective and caveats

Policymakers and the innovation community should read the high demand figures carefully. A strong number of applications is a signal of an active ecosystem but also of a persistent financing gap for risky deep tech. The EIC model of blended finance aims to bridge some of that gap by combining grants and an EU-backed equity instrument. However the EIC Fund is not a guarantee that every grant recipient will receive equity. Selection is conditional and subject to investment due diligence.

There is also the question of geographic and sectoral spread. Historically the distribution of EIC funding has shown concentrations in a handful of member states and in certain technologies. Fast Track routes such as those offered by the EIT KICs can funnel well-prepared applicants into the process but they can also concentrate advantage in regions that already host robust ecosystems. The EIC and implementing agencies have signalled efforts to widen participation but application numbers alone do not resolve structural imbalances.

Practical checklist for prospective applicants

1. Use the short application route on the EIC AI platform early to secure time to prepare a full proposal. 2. If eligible, explore Fast Track options with EIT KICs and other certified programmes to bypass the short application step. 3. Prepare investor-ready materials including a concise pitch deck, financial plan and clear milestones if you seek EIC Fund equity. 4. Read the EIC Accelerator guide for applicants and FAQs thoroughly. 5. Consider the Seal of Excellence as one route to alternative finance but not as a guaranteed funding solution.

A note on outcomes so far

The EIC selected 164 start-ups and SMEs across the June and October 2021 cut-offs and the first of those beneficiaries had started to receive the grant component of their funding by the time of this 2022 announcement. That underlines that selection is only the start of a process that includes contracting, grant disbursement and, where applicable, investment due diligence for equity.

In short, the 23 March cut-off confirmed persistent demand for EIC support and also marked the practical expansion of Fast Track pathways via the EIT KICs. For applicants the message is straightforward. The competition is intense and preparation matters. For policymakers the message is also clear. High demand underscores the need to balance ambition for strategic scale-up funding with transparent selection and continued efforts to broaden access across the Union.