Library FAQ
What types of financial instruments can the Compartment use to invest?
The Compartment may invest in equity or equity-related securities, including preferred equity, convertible debt, options, warrants, quasi-equity instruments (e.g. participation rights, SAFE), and direct equity.
What types of innovation does the Compartment support?
Deep-tech (technology based on cutting-edge scientific advances), radical thinking, and social innovation, and it may focus on capital-intensive strategic technologies where appropriate.
Which entity makes all investment and divestment decisions for the Compartment?
The External AIFM makes all investment and divestment decisions for the account of the Compartment.
Are there policy priority areas the EIC Accelerator focuses on?
Yes. While open to all high‑risk innovations, part of support may focus on capital‑intensive strategic technologies in policy priority areas such as Health, Green Deal (clean energy, climate action, future mobility), Digital Transformation, advanced engineerin...
Can the EC provide follow‑on investment after the initial award?
Yes. The European Commission may award follow‑on investment on an ad hoc basis, outside calls, subject to budgetary availability, independent expert review and advice of the EIC Board, for operations initially awarded an investment component or a “grant first”...
How are investments structured and disbursed?
Investments may be disbursed in tranches tied to meaningful milestones reflecting project maturity and TRL progress. The EIC Fund Board decides on the total investment package and may recommend revising or rejecting initially awarded investments; EISMEA coordi...
How do companies apply and receive EIC support?
Companies apply through public EC calls. EISMEA collects and evaluates proposals; the EC selects actions and awards indicative blended finance. EISMEA negotiates the grant contract and forwards the indicative investment component to the EIC Fund for due dilige...
How is the EIC Fund governed?
The EIC Fund is governed by a Board of Directors (five members appointed by the European Commission) which oversees investment strategy and decides on operations, advised by an Investment Committee of eight members who propose investment structures and terms.
How is the investment agreement linked to the grant contract?
Once negotiated, the investment agreement enters into force upon an amendment to the Accelerator grant contract that reflects the agreed investment amount, instalments, milestones/deliverables and any agreed changes to the action; some investment terms are kep...
What are the consequences of a material breach of the Accelerator contract?
A material breach of the grant component of the Accelerator contract prevents the EIC Fund from further investing in the company and may lead to early exit; the converse also applies.
What founder‑friendly terms does the EIC Fund aim to preserve?
The EIC Fund aims for founder‑friendly terms to preserve founder value and motivation—for example a stock option pool of at least 10% for founders and key employees—while also considering investor‑friendly terms to attract private capital.
What funding components does the EIC Accelerator provide?
EIC Accelerator support consists of EIC blended finance: a mix of grant and investment (in particular equity or quasi‑equity). For a small mid‑cap the support may consist only of investment on a co‑investment basis.
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...