.png "EIC Fund - Updates & Insights (Bold)")
Six Strategic Goals
Following the suggestions from an independent report written by the EIC pilot Advisory Board, the EIC has implemented a series of goals and key performance indicators (KPIs). Specifically, the EIC recommends six strategic goals with accompanying KPIs. The EIC aims to diligently monitor its progress with respect to each of its goals by using the respective KPIs.
1. Be the Investor of Choice
Goal: “To be the investor of choice for those with visionary ideas”
KPI 1: “High Net Promoter Score from EIC participants”
KPI 2: “Increased share of EIC supported start-ups and research projects led by women”
KPI 3: “Increased share of EIC supported startups and research project partners from widening countries”
2. Crowd in Private Investment
Goal: “To crowd in €30-50 billion investment into European deep tech”
With a budget of €3 billion from 2021-2027, the EIC Fund is positioned to be one of the most prominent deep-tech venture capitalists (VCs) in Europe during this time frame. 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 €30 billion-€50 billion as one of its strategic goals. This is in an effort to reduce the funding disparity across different regions of Europe in comparison to more developed countries across the globe. Each € of EIC financial support triggered follow-on investments of €2.4 during the pilot phase. The first group of investments through the EIC Fund have attracted a multiple of 2.7 in co-investments so far.
KPI 1: “EIC Fund multiplier of 3-5 times at portfolio level from co-investors”
KPI 2: “Follow up investments on portfolio of 3-5 times the EIC support in the 3 years following EIC support”
3. Promote High Risk Technologies
Goal: “To pull through high risk technologies in critical areas for society and strategic autonomy”
KPI 1: “High share of EIC companies in priority deep tech areas”
KPI 2: “High share of citations and patents from EIC projects in priority deep tech areas”
4. Increase the Number of Unicorns in the EU
Goal: “To increase the number of European unicorns and scale ups”
The EIC pilot proved to be a great success, with hundreds of companies receiving financial support. Furthermore, the EIC helped form 5 unicorns (startups with a valuation over €1 billion) and over 90 centaurs (startups with a valuation over €100 million).
KPI 1: “Increased number of EIC supported centaur companies”
KPI 2: “Increased number of EIC supported unicorns”
KPI 3: “Employment and revenue growth of EIC companies”
5. Build on Public R&D
Goal: “To catalyse innovation impacts from European public R&D”
KPI 1: “Increased number of EIC research results turned into new companies or commercial deals”
KPI 2: “Increased number of EIC supported companies emerging from EIC research projects, ERC, EIT and national programes”
6. Achieve Operational Excellence
Goal: “To achieve operational excellence”
Transitioning from the pilot phase has proved to be rather difficult. The EIC has faced major setbacks and delays. Startups that were selected for funding through the EIC Accelerator have been waiting patiently to receive equity investment. The delay in funding has put many startups at risk of closure. For more information, read this Sifted article which dives deep into the reality of the EIC's equity programme.
KPI 1: “Startups to receive first grant payment within 4-5 months of applying to the EIC”
KPI 2: “EIC Fund to agree investment term sheet within 8 weeks”
Resources
- EIC website: https://eic.ec.europa.eu/index_en
- A vision and roadmap for impact: https://eic.ec.europa.eu/system/files/2021-03/ec_rtd_eic-vision-roadmap-impact.pdf
- The EIC: Strategic Goals and Key Performance Indicators: https://eic.ec.europa.eu/system/files/2022-06/KPI%20EIC-1.pdf
- Inside the EU’s stalling startup investment scheme: https://sifted.eu/articles/rise-fall-eu-vc-eic/