Winnovart
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
  5. What are the Valuation Methods and Forms of Investment?
    1. Valuation Methods adopted by the EIC Fund
    2. Forms of Equity / Quasi-Equity Investments

 

 

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.

 

 

 

5. What are the Valuation Methods and Forms of Investment?

The EIC Fund will not be valuing companies which apply for funding via the EIC Accelerator programme. Instead, they will generally adopt the valuation as set out by the private co-investor(s). Additionally, the EIC Fund will
take, in priority, the form of equity or quasi-equity investments. 

 

   

At Winnovart, it is part of our mission to bridge the gap between stakeholders of the grants-funding market-space across Europe. We believe in the potential of grants to create ecosystems that drive innovation, growth and reduce disparities between the regions of Europe.  Our aim is to support innovative SMEs, private investors and funding agencies to become part of this ecosystem and make the most of it.

Our presence in Western, Eastern and Northern Europe enables us to create international business cases for our clients, in the context of attractive funding programmes as well as beyond it, by opening up international development opportunities.

For more updates on funding opportunities, please follow us on social media: Facebook, Linkedin or Twitter.

For more details about Winnovart please check our website. If you would like to be contacted by our experts please reply to
office@winnovart.com or contact us here and we will get in touch very soon.