€435 million in the form of grants, equity investments or blended finance were awarded to firms in the energy sector between 2014-2022. 600+ energy projects were funded by Europe's flagship EIC Accelerator programme (formerly known as SME instrument under Horizon 2020). 

The EIC Accelerator programme helps high-risk, innovative SMEs and start-ups willing to develop and commercialise new products, business models, and services. The EIC Accelerator programme opens funding and investment opportunities worth over €1.13 billion in 2023. These developments could potentially drive economic growth and influence new markets or disrupt existing European or global markets. 

Introduction to the EIC Fund & EIC Accelerator

The European Innovation Council (EIC) Fund is the investment vehicle of the EIC Accelerator programme - the European Commission's (EC) flagship innovation funding programme. With a budget of €3 billion from 2021-2027, the EIC Fund is positioned to be one of Europe's largest deep-tech venture capitalists (VCs) during this period. Through the structure of the fund, a minimum of €3 billion of private funds will be invested alongside the EIC Fund during this period. The EIC aspires to crowd in a further €30bn-€50bn as one of its six strategic goals.

The EIC Fund is a venture capital fund owned by the European Commission established to make direct equity investments in companies with breakthrough technologies. The Fund usually targets minority ownership stakes (10 to 20%). Furthermore, it participates in direct equity investment ranging between €0.5 million to €15 million in innovative companies that pass the rigorous EIC Accelerator selection process. The Fund invests on a matching (1:1) basis alongside a syndicate of lead investors from the private market.

EIC Funding Impact on the Energy Sector

Overview 2014-22 (Horizon 2020 & Horizon Europe)

Between 2014-2022, 639 companies in the energy sector secured funding from Europe's flagship EIC Accelerator programme (previously called SME instrument under Horizon 2020). €435 million were awarded to firms through grants, equity investments or a combination of the two: blended finance. Energy-related funding accounted for 8.5% of the total funding awarded during this period.  

*[Figures accurate as of 15/05/2023].

Distribution of Funding

EIC Funding Impact on All Sectors

Overview 2014-22

The top three sectors that attracted the most funding were: (1) Health €1.4 billion, (2) Engineering and technology €730 million and (3) ICT €570 million. 

EIC SME Instrument & EIC Accelerator Pilot 2019-20 (Horizon 2020)

Overview 2014-20

The top three sectors that attracted the most funding were: (1) Health €500 million, (2) ICT €410 million and (3) Engineering and technology  €310 million. 

EIC Accelerator 2021-27 (Horizon Europe)

Overview 2021-22

The top three sectors that attracted the most funding were: (1) Health €930 million, (2) Engineering and technology €430 million and (3)  Energy €170 million. 

Investment Strategy

The EIC Fund's investment strategy: 

• Early-stage equity investments (seed, start-up, scale-up).
• Equity investment between €0.5 million and €15 million.
• Possible follow-on investment.
• EU-wide investments across all types of technologies and verticals.
• Long time horizon (7-15 years).
• Minority ownership stakes between 10-20%.

Resources

1. EIC website: https://eic.ec.europa.eu/index_en 
2. EIC Fund: https://landing.winnovart.com/eic-fund-overview 
3. EIC Work Programme factsheet: https://eic.ec.europa.eu/eic-work-programme-2022_en#factsheets 
4. EIC Accelerator: https://landing.winnovart.com/eic-accelerator-overview-of-challenges-2023