EIC Accelerator - SME Instrument

European Commission’s 9th framework - Horizon Europe - Main channels:

• Excellent Science

• Industrial Leadership

• Social Challenges

• Submission by pre-defined calls

• Evaluation by independent specialists

• No IP restriction

• New: blended finance - Equity investment

Horizon Europe

• Goal: Bridge the gap between innovation and market take-up

• Tailor-made investment that fits the needs of the company and of the project

• Grant for  development & demonstration: up to €2.5M Grant

• Equity of up to €15M per company (€100M total budget for equity in 2019-2020 pilot phase)

• Also provides: Coaching, Mentoring, Networking & Community

The EIC Accelerator Pilot

The Main Criteria

Excellence

The WOW effect

Focus on innovation

Stage of development (TRL)

Differentiation factors

Impact

Demand and willingness to pay

Competitiveness

Growth potential (revenue, P&L, etc.)

Commercialization plan

European dimension

Implementation

Company (R&D capabilities, Finance, Infrastructure)

The leading team

Work packages

Management scheme

The EIC Accelerator Evaluation Process

• EIC has a community of trusted VCs and investors

• EIB (European Investment Bank) acts as an investment advisor

• Due Diligence process focuses mainly on evaluating compliance and risk, Investment amount and structure, financial effort, business strategy & value creation

• Investment Advisor will be involved in the negotiation process and will do follow-ups afterward

• The company has the final say

• Initial budget of €100M

Blended Finance - Equity Investment

• Due Diligence will be performed with the company's consent

• The EIC target minority ownerships stakes (10-25%)

• Will avoid holding majority stakes and control

• 4 types of investment scenarios

• Different Methods for the valuation: Multiples of Earnings, Fair Market Value, Book Value, Discounted Cash Flow, etc

• Various investment approaches: Common shares, Preferred shares, Convertible shares, etc

Due Diligence & Investment Structure

Annual Budget - EIC Accelerator Pilot

Evaluation Process

Types of Investment Scenario

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