Library FAQ
What types of equity-type financial instruments can the EIC Fund use?
The EIC Fund may use common shares, preferred shares, convertible instruments (e.g. convertible loans) and other equity-type instruments appropriate to achieve its objectives.
What types of financing does the EIC Fund provide?
The EIC Fund provides equity or quasi-equity investments blended with a grant component; the grant is managed by the EC and the equity component is operated by the EIC Fund with EIB Group support.
What valuation methods might be used for investee companies?
Commonly referenced methods include multiples of earnings (times revenue), fair market value comparisons, book value (market value of assets minus liabilities), price of recent investment, discounted cash flow, and other asset-based methods such as liquidation...
What was the initial pilot budget of the EIC Fund?
In its pilot phase (until 2020) the EIC Fund had an initial budget of EUR 100 million.
Which entities are eligible for EIC Fund investment?
Eligible applicants are for-profit SMEs, including start-ups and early-stage companies organized as single economic entities; consortia, universities and non-SMEs are not eligible.
Which sectors are policy priorities for the pilot?
The pilot focuses on capital-intensive policy-priority sectors including clean energy, advanced engineering, life sciences, digital, space, climate action, future mobility and social innovation.
Who manages the grant and who manages the equity component of the EIC Accelerator pilot?
The grant component is managed by the European Commission; the equity component is operated by the EIC Fund and advised by the EIB Group, under the EIC governing bodies.