Eligibility for EIC Accelerator: Can your startup/SME apply?
Small and medium-sized enterprises (SMEs) represent 99% of all businesses in the European Union. They are the driving disruptive mechanism for innovative solutions and a digital sustainable economy. Consequently, they are in front of the revolution to tackle challenges like climate change, resource efficiency, and social cohesion throughout the planet (1).
Still with their importance to Europe’s economy, SMEs are a major focus of the EU policies. The European Commission aims to promote entrepreneurship and improve the business environment for SMEs, therefore allowing them to realize their full potential in today’s global economy (2).
The EIC Accelerator supports SMEs and small mid-caps through funding from € 0.5 mln to € 17.5 mln (3). Regarding the programme, there are objective and subjective criteria to be observed in order to be eligible to submit a proposal.
EIC ACCELERATOR ELIGIBILITY CRITERIA:
OBJECTIVE CRITERIA:
Who can apply?
Type of Company
This division is important to establish a clear picture of an enterprise’s economic situation and to exclude those that are not genuine SMEs. Overall, there are two main factors determine whether an enterprise is an SME according to the European definition(4):
Staff headcount(see details – Figure 1);
And either turnover or balance sheet total(see details – Figure 1).
These rules apply to the numbers of individual firms only. A company that is part of a larger group may need to include staff headcount/turnover/balance sheet data from that group too.
Additionally, SMEs and small mid-caps are eligible observing the following aspects:
A single company classified as SME established in an EU Member State or Associated Country.
A small mid-cap: up to 500 employees. Eligible to the investment component only (equity up to € 15 mln for commercialization activities).
One or more natural persons or legal entities:
Intending to establish an SME or a small mid-cap in a Member State or Associated Country by the time of contract signature.
Intending to invest in an SME or small mid-cap (Member State or Associated Country), who may submit the proposal on behalf of that SME or small mid-cap and who have a prior agreement with the company. Contract only with the beneficiary company.
From a third country (non-associated), intending to establish or relocate an SME to a Member State or Associated Country by the time of submitting the full application (Phase 2 Proposal). Thereupon the company will be requested to prove effective establishment and the union interests must be met.
The definition of an SME is, therefore, extremely important for access to finance and participation in EU funding programmes, targeted specifically at these enterprises. The SME Definition distinguishes between three distinct categories (4):
Autonomous: completely independent or has one or more minority partnerships, with less than 25 % of other enterprises;
Partner: holdings with at least 25 % but no more than 50 % of other enterprises;
Linked enterprise: holdings exceeding the 50 % threshold participation in other enterprises.
Technology Readiness Level (TRL)
The Technology Readiness Level (TRL) is also an important aspect to consider when applying for the EIC Accelerator and provides a guide to the assessment of the company stage of development.
Regarding the EIC, the Technology Readiness Level (TRL) requirements are:
A company/proposal should have at least completed TRL 4 and undertaken activities to achieve TRLs 5 to 9, to be funded;
Grant support is for development activities (TRLs 5/6 to 8);
Scale-up activities (TRL 9) can request investment only.
TRLs are used for guidance, with the following definitions (but recognizing that there are differences within distinct technological fields) (3):
Countries
The eligibility for EIC Accelerator requires applicants to be established in one of the eligible countries, i.e.:
Member States (including overseas countries and territories);
Eligible non-EU countries: Associated countries and low- and middle-income countries (*).
(*) Since the time of publication, confirmation of associated countries is pending. The Union aims to continue relations with Horizon 2020-associated nations, likely including them in Horizon Europe. Further third countries might join during the program. For eligibility, applicants from Horizon 2020 Associated Countries or those negotiating association with Horizon Europe are treated as Associated Country entities. This applies when the association agreement is active during grant agreement signature. If the agreement excludes the EIC Fund, entities can apply solely for the ‘grant-only’ EIC Accelerator component.
For the Horizon 2020 Associated Countries, check here:
https://ec.europa.eu/research/participants/data/ref/h2020/other/wp/2018-2020/annexes/h2020-wp1820-annex-a-countries-rules_en.pdf
SUBJECTIVE CRITERIA:
Type of Innovation
The European Commission is particularly looking for Start-ups, SMEs and in exceptional cases, small mid-caps:
When seeking to scale up high impact innovations with the potential to create new markets or disrupt existing ones;
Focused on innovations built on scientific discoveries or technological breakthroughs (‘deep tech’);
With innovations where significant funding is needed over a long timeframe and are too risky for private investors alone.
Are you looking for funding opportunities? Our team of experts can help you to build a reliable and consistent strategy.
Contact us for additional information and a free pre-evaluation of your project, including the eligibility criteria.
References:
(1) https://ec.europa.eu/growth/smes
(2) User Guide to the SME definition, European Comission, EU 2020
(3) EIC Work Programme, 2021
(4) https://ec.europa.eu/growth/smes/sme-definition_en
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