What does it take to win funding in the ultra-competitive EIC programme?

The European Innovation Council (EIC) programme has emerged as the European Commission's flagship funding scheme for deep-tech innovators. Through its diverse funding instruments, the EIC offers comprehensive support to startups and SMEs at every stage of their growth journey, including early technology development in the lab (EIC Pathfinder and EIC Transition), industrialization and market launch (EIC Accelerator), and scale-up (EIC STEP Scale-Up).

However, success comes at a cost. All these funding instruments are highly oversubscribed, meaning there are far more excellent applications than available budget at any given deadline: on average, less than 5% of applicants will be successful.

An EIC Accelerator submission is a significant undertaking for a startup, typically requiring up to three months of full-time work (500 hours) across three application stages (short application, long application, interview). To avoid diverting crucial resources from core business activities, over 80% of applicants hire external resources to help them through this grueling process.

What’s new in 2024 in the EIC Accelerator programme?

The EIC Accelerator programme has undergone significant changes in the past year alone, posing considerable challenges for startups and SMEs seeking funding. These frequent adjustments require companies to swiftly adapt to new rules and processes, often with only a few weeks' notice. This rapid pace of change is particularly daunting for startups already grappling with the demands of running their businesses.

Reset in resubmission rules: Companies that failed before (including those that were in a cooling-off period following two unsuccessful attempts) have had their application counter reset. They are now allowed to apply up to three times across all application stages before being barred from applying again in the Horizon Europe programme. This has led to a substantial increase in resubmissions from previous years, thereby raising the overall competition level.

Fewer deadlines: The number of application deadlines has been reduced to a spring cut-off and an autumn cut-off (instead of four cut-offs previously). This adjustment extends the timeline between applications, making it even more important to succeed on the first attempt. It is very challenging to get companies funded on the second or third attempt, as substantial time may have passed, and the application must be entirely rewritten.

Decreased total programme budget: The budget allocation has decreased by 40% compared to 2023, with €375 million earmarked for open calls and €300 million explicitly allocated for challenges. This change has impacted the overall success rates of applicants.

Stricter selection criteria: The selection criteria for the short application stage have become more stringent, as 3 out of 4 evaluators must approve the application (instead of 2 out of 4 in 2023). This raises the bar for projects seeking initial approval. A proposal failing at the short application stage has only two attempts left across the next stages (long application and interviews), making it a very risky case to take on for consultants. This is why you should not file a short application on your own if you plan to seek consultant support in the long application stage.

Lump-sum budgets: The introduction of lump-sum funding increases the level of scrutiny on the project budget, as evaluators must approve the cost allocation upfront. Successful applicants will not have to justify their costs later when running the project. However, many evaluation reports have seen costs being challenged by evaluators, leading to potential rejection.

The importance of experienced consultancy support

The complexity of the application process, which can exceed 100 pages of detailed documentation, makes the support of an experienced consultancy indispensable. A seasoned consultant offers invaluable assistance in navigating these processes, ensuring that startups meet the high standards and stringent criteria set forth by the new EIC guidelines.

At Zaz Ventures, we bring expertise to significantly reduce your workload and enhance your chances of success:

• Strategic Planning: We provide advice on optimal application timing and how to align project goals with EIC priorities.
  
  
• Process Streamlining: We stay updated with programme changes, preparing a tailored strategy to address them with you.
  
  
• Application Preparation: We help you collect the necessary information and craft compelling proposals that meet the stringent selection criteria.
  
  
• Application Development: We take on a significant part of the effort required for an EIC submission, providing expert guidance and support throughout the application process, all the way to the interview stage.

Contact us today to discuss available funding options in Europe!