The European Commission already invested nearly a billion euros in deep tech companies through the European Innovation Council (EIC) Fund. A total of 159 parties saw their applications approved.
The EIC Fund has been available since September 2022. The fund targets startups and SMEs developing breakthrough technologies and innovations. It was launched as part of Horizon Europe. The European Innovation Council has a budget of €10.1 billion to support breakthrough innovations in the life cycle from early research to proof of concept, technology transfer and the financing and scaling up of startups and SMEs.
159 applications approved
A wide range of parties applied for financial support from the EIC Fund. A total of 159 parties' applications were approved. These start-ups and SMEs go through an evaluation procedure, which includes external experts and the European Investment Bank (EIB). The EIB acts as investment adviser to the EIC Fund.
Incidentally, the EIC Fund only invests as part of a wider investment. In practice, this means that if an application for investment is approved by the EIC Fund, the applicant is given 12 months to find co-investors. The EIC supports them in this process.
Three times more investments raised
The EIC Fund reports that 71 companies have now completed this process. These parties raised a total of three times as much money from investors as the EIC Fund invests in the projects.
In addition, through its business acceleration services, the EIC also provides access to expertise and partnerships, among other things, and helps parties identify and capitalise on market opportunities.
Three examples
The European Commission explicitly mentions three parties as examples of organisations benefiting from EIC investment. These include Dutch company Microsure, which focuses on robot-assisted microsurgery. The company raised a total of €38 million in investments to finalise the development of its latest microsurgery robot, and conduct clinical trials.
Another in France's Quandela, which focuses on quantum photonics. The company develops full-stack optical quantum computers, available via the cloud as well as on-premises. Quandela raised EUR 50 million from investors to support its international expansion and further development.
The third example is Spain's Methinks, which specialises in the detection and management of acute stroke patients using artificial intelligence (AI). This party raised €2.5 million in convertible loans.
Author: Wouter Hoeffnagel
Photo: Rudy and Peter Skitterians via Pixabay
