Cash for European deep tech startups
A summary of the newly minted European Innovation Council’s 2021 Work Programme
Are you a deep tech startup in Europe and looking for non-dilutive, very early stage funding for a breakthrough innovation?
Highlights
- €10b 🤑 for EU startups working on breakthrough technology 🚀
- Non-dilutive funding 🙏 available in the form of grants of up to €4m
- Investment funding (equity) up to €15m 💰
- Focus on impact-oriented startups 🌍 addressing the Sustainable Development Goals
- First deadlines are as early as 19 May 2021 🏃♂️
Non-dilutive funding. As an early stage deep tech VC and friend of many deep tech founders, it is music to my ears. This is why I was excited enough upon reading the 155-page European Innovation Council’s recently-released Work Programme that I felt inspired to summarize and share!
Horizon Europe is the European Commission’s massive new funding/budget plan that is slated to run from 2021–2027 to replace Horizon 2020, under which there will be a vast number of research and startup funding opportunities coming out in the next months.
One of the biggest reveals on March 18, 2021 was the European Innovation Council, which will be deploying roughly 10 billion euros between 2021 and 2027 specifically to encourage breakthrough innovations to make it from the lab to commercialization.
As such, the EIC Work Programme 2021 has laid out three broad initiatives called EIC Pathfinder, EIC Transition, and EIC Accelerator, which sequentially support development of a technology from Technology Readiness Level (TRL) 1 to TRL 9 (see the mini-Appendix at the end of this post for TRL guidelines). The EIC Pathfinder opportunity is specifically geared towards multi-institution projects tackling problems at the earliest stages of research. Applying to an EIC Transition funding opportunity needs to build on results achieved within prior funded eligible projects from EIC Pathfinder, Horizon 2020, ERC Proof of Concept projects, etc. (including if you are using IP licensed from these projects). Similarly, applying to the EIC Accelerator is put in a “Fast-Track” after completing earlier Pathfinder/Transition/Horizon Europe/Horizon 2020 programs, although there are no requirements limiting applicants who have not completed prior programs.
Importantly, there are both Open Funding calls and Challenges for each of the three initiatives (Pathfinder, Transition, Accelerator). Open Funding calls, as one would expect, are “open to proposals in any field of science, technology, or application.” Challenges are calls for specific areas such as Emerging Technologies in Cell and Gene therapy or Energy Harvesting and Storage Technologies (all outlined below).
I highly encourage any deep tech researchers or founders to read the entire work program in full! 👩💻☕️
EIC Pathfinder
- Who: Consortia of 3 or more independent entities such as research organizations, universities, SMEs, industry, etc. from at least 3 different countries (single or dual applicants allowed for Challenges in some cases)
- What: Proof of principle and validate scientific bases of breakthrough (TRL 1–4)
- Funding: Grants up to €3m (Open) or €4m (Challenge)
- Deadline: 19 May 2021 (Open) or 27 Oct 2021 (Challenges)
- Challenges: 1. Awareness inside; 2. Tools to measure and stimulate activity in brain tissue; 3. Emerging technologies in cell and gene therapy; 4. Novel routes to green hydrogen production; 5. Engineered living materials
EIC Transition
- Who: Single applicants or consortia up to 5 partners from SMEs, spin-offs, startups, research organizations, universities
- What: Validate and demonstrate technology in application relevant environment and development market readiness (TRL 4–6)
- Funding: Grants up to €2.5m
- Deadline: 22 Sep 2021 (Open and Challenges)
- Challenges: 1. Medical devices; 2. Energy harvesting and storage technologies
EIC Accelerator
- Who: Single startups, SMEs, individuals intending to launch startup, exceptional cases mid-caps
- What: Tech development and validation in grant stage, followed by scale up and commercial activities (TRL 5–8)
- Funding: Grants up to €2.5m, Investment €0.5–15m
- Deadline: Any time (short applications), Full applications 9 Jun 2021 and 6 Oct 2021 (Open and Challenges)
- Challenges: 1. Strategic health and digital technologies; 2. Green Deal innovations for the economic recovery
What I like so much about the EIC Work Programme is that it specifically targets deep tech innovations that address sustainability development goals, an area that is notoriously challenging for traditional funding and increasingly important to encouraging social and economic welfare of Europe.
EIC Prizes
The EIC has also announced much smaller, individual prizes. These have deadlines that are to be announced but slated for Q1 or Q2 2021, and are:
- EU Prize for Women Innovators (founder or co-founders): up to €100k
- The European Capital of Innovation Awards (iCapital): up to €1m
- The European Innovation Procurement Awards: up to €75k
- The European Social Innovation Competition: up to €150k
Other Funding Actions
There is an entire list of other actions including outreach and ecosystem funding, including €6m for 3 to 4 coordination actions by startup ecosystem builders, accelerators, incubators, business angel organizations, VCs, etc to support the deep tech startup ecosystem.
Am I eligible?
To be eligible for funding, the legal entity must be established in an EU Member State, an Associated Country (in classic EU form agreements are not in place yet, although Horizon 2020 Associated Countries are expected), or a low and middle income country (not available yet). Much of the funding is targeted at SMEs with fewer than 250 employees and annual turnover below €50m.
What if my innovation is not ready?
Do not fret! The Open Funding calls will have deadlines in June and October 2021 and “are expected to remain relatively stable to provide a significant level of predictability for applicants,” meaning that you can probably expect to also apply by June and October 2022 (and so on until 2027). The challenge-driven calls however, will evolve, so apply now if there is a perfect fit!
mini-Appendix: Technology Readiness Levels (👩🔬->👩💼)
These are defined in the EIC Work Programme 2021, although there is a clear statement that innovations that are not necessarily technological or follow these criteria clearly may also be supported.
TRL1 — basic principles observed
TRL2 — technology concept formulated
TRL3 — experimental proof of concept
TRL4 — technology validated in lab
TRL5 — technology validated in relevant environment
TRL6 — technology demonstrated in relevant environment
TRL7 — system prototype demonstration in operational environment
TRL8 — system complete and qualified
TRL9 — actual system proven in operational environment
