Library FAQ
What investment sizes and stages does the EIC Fund target?
Initial investments range between EUR 0.5 million and EUR 15 million and may cover seed‑stage up to Series C. Support targets projects from around TRL 5/6 up to TRL 9, with grant support available for TRL 5–8 activities (grants may cover up to 70% of those act...
What is the EIC Accelerator?
The EIC Accelerator is an EU initiative under the European Innovation Council designed to bridge the financing gap (the “Valley of Death”) by supporting innovators, start-ups, SMEs and small mid-caps to bring high‑risk innovations to market and scale‑up.
What is the EIC Fund’s approach to co‑ and alternate investments?
The EIC Fund will systematically seek co‑investment and syndication on a matching basis to crowd‑in private and public investors, aiming to leverage additional funding and bring in qualified investors who provide capital, expertise and networks.
What is the EIC Fund’s Bucket 0 classification?
Bucket 0 covers cases where pre‑ or due diligence uncovers substantial negative issues preventing investment (e.g., fraud, misrepresentation, material adverse changes, reputational risk, undisclosed problematic shareholders, IP not owned or litigated). The Boa...
What is the EIC Fund’s Bucket 1 classification?
Bucket 1 includes companies that remain insufficiently mature or fail to attract co‑investment despite EIC support—due to very early technology stage, long time‑to‑market, small addressable market, or low readiness to absorb equity. It also includes cases wher...
What is the role of the EIC Fund?
The EIC Fund implements the investment component of EIC blended finance awarded by the European Commission, raises investor interest to leverage co‑ and alternate investments, and manages and exits investments to benefit the beneficiary and EU financial intere...
What ownership stakes does the EIC Fund target when investing?
When providing equity or quasi‑equity, the EIC Fund targets minority ownership stakes and may take up to a blocking minority for operations in essential EU areas; it generally avoids majority control but may hold majority stakes only if required to protect EU...
What types of co‑investors may the EIC Fund engage with?
Depending on the case, co‑investors may include Business Angels, Venture Capital funds, Impact investment funds, Family offices, Venture debt funds, National Promotional Banks (NPBs) or corporate venture arms.
What types of innovation does the EIC Accelerator support?
The EIC Accelerator supports deep‑tech (technologies based on cutting‑edge scientific advances requiring continued lab interaction), radical thinking and social innovation across high‑risk technological, market or financial areas.
Who implements the EIC Accelerator and supports the EIC Fund?
The EIC and the EIC Accelerator are implemented under the operational lead of the European Innovation and SME Executive Agency (EISMEA) by delegation of the European Commission. The EIB Group supports the EIC Fund as its Investment Advisor.
Who is eligible to apply to the EIC Accelerator?
For‑profit SMEs (including start‑ups and early‑stage companies) and small mid‑caps from any sector, typically with a strong intellectual property component, established and operating in EU Member States or Horizon Europe Associated countries are eligible.
How does the EIC Fund monitor investments and support follow-on financing?
The Investment Advisor monitors investments, manages milestone-based disbursements, financing events, write-downs, restructurings and exits; EIC Fund representatives may act as board observers or representatives and mentor networks are provided with company co...
How is intellectual property (IP) handled for blended finance projects?
Projects benefiting from EU equity (buckets 1 to 3) are exempted from Horizon 2020 IP obligations (except on early termination); within national law investees and co-investors are given maximum autonomy on IP, but where EU strategic interests arise and a block...
Under what circumstances can an application be rejected or investment terminated?
Applications can be dismissed or investments terminated if fraud, misrepresentation, exclusion, ineligibility or non-compliance (including tax, political or integrity issues) are established; grant agreements may be terminated and the EIC Fund may exit and see...
What are the EIC Fund's co-investment scenarios (buckets) in brief?
Bucket 1: market shows no interest—EIC Fund may invest alone after due diligence; Bucket 2: no immediate but potential interest—similar, with possible future co-investor involvement; Bucket 3: immediate but partial interest—EIC Fund invests relying on co-inves...
What are the typical EIC Fund investment sizes and grant amounts?
EIC Fund equity investments will range between EUR 0.5 million and EUR 15 million per company, blended with a grant component between EUR 0.5 million and EUR 2.5 million (EUR 3.5 million for the Health sector) provided by the EC.
What aspects does the EIC Fund's due diligence focus on?
Due diligence focuses on governance and management quality, capital structure and financial planning, business strategy, competition, market assessment, alternative financing sources, value creation, legal form and jurisdictions.
What company development stages does the EIC Fund target?
The EIC Fund targets Pre-Seed, Seed and Early-stage SMEs; growth-stage companies are not within the focus of the pilot phase.
What equity stakes does the EIC Fund typically target?
The EIC Fund will generally target minority ownership stakes from 10% to 25%, and up to a blocking minority for cases identified by the EC as of strategic interest; it will avoid majority stakes unless due to external unforeseen circumstances.
What geographic scope applies to eligible companies?
Companies must be established and operating in EU Member States or countries associated to Horizon 2020.
What is the EIC Fund and its main objective?
The EIC Fund is an initiative of the European Commission with support from the EIB Group that provides patient capital (equity or quasi-equity blended with grants) to bridge the financing gap between research grants and commercialization of market-creating inn...
What is the investment decision process flow from application to monitoring?
Selected proposals are channeled to the EIC Fund; the EIB (Investment Advisor) undertakes due diligence and negotiates draft terms; the Investment Committee examines due diligence and structuring proposals and recommends to the EIC Board, which takes the final...
What is the maximum total funding a recipient company can receive under these guidelines?
The EC will allocate a maximum total funding (grants and equity) of EUR 17.5 million to recipient companies to bring their innovations to market.
What is the typical investment duration and exit approach for the EIC Fund?
The EIC Fund invests patient capital with an average perspective on returns of 7–10 years and a maximum of 15 years; exit strategies are set case-by-case and may include IPOs, management buy-outs, secondary sales or liquidations.