EIC Fund - Explainer Series Banner (Explained by Winnovart)


An Overview of our Explainer Series

  1. What is the EIC Fund and How does it Work?
    1. What is the EIC Fund?
    2. How does the EIC Fund work?
  2. What is the Process of Signing a Deal with the EIC Fund?
    1. What is the process of signing a deal?
    2. Detailed steps
  3. How does the Convertible Note Work?
    1. What is a convertible instrument?
    2. How do they work in the EIC Fund's blended finance programme?
  4. What are the Qualification Criteria for Investors?
    1. Private co-investor/lead investor checklist
    2. Special cases



1. What is the EIC Fund and How does it Work?

The European Innovation Council (EIC) Fund is the investment vehicle of the EIC Accelerator programme - the EC's flagship innovation funding programme. With a budget of €3 billion from 2021-2027, the EIC Fund is positioned to be one of the largest deep-tech venture capitalists (VCs) in Europe during this period. 



2. What is the Process of Signing a Deal with the EIC Fund?

The EIC Fund investment process consists of 9 steps. Steps 1-3 involve standard communications between the award recipient and the EIC Fund as well as due diligence and compliance checks. In steps 4-6, the European Investment Bank (EIB) prepares the investment recommendation for the investment committee and Board of Directors to review. Finally, in steps 7-9, the company receives a term sheet and the investment agreement is signed.



3. How does the Convertible Note Work?

A convertible instrument is a debt instrument but it has a convertibility feature attached to it. Convertible instruments are offered when beneficiaries are labelled as a 'bucket 1' case. This means that the beneficiaries are not ready for private investment because they remain a high risk despite being awarded the EIC Fund grant.



4. What are the Qualification Criteria for Investors?

The EIC Fund's lead/co-investor checklist includes eight criteria which are located in its Investment Guidelines. In certain special cases, the qualification criteria may vary on a case-by-case basis. In each case, the qualification is subject to assessment by the EIC Fund.




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