At Winnovart, we are currently researching the impact of blended funding programmes on the European innovation & investment ecosystem. We believe that blended funding (mixing grants & equity investments) is the most interesting development in the European grants-funding ecosystem for many years, promising to reshape its future.

The EIC Fund is one of the largest blended-funding programmes in Europe. More information on the EIC Fund can be found here.

We are looking to find out the general experience of selected companies and their private/lead investors with the EIC Fund. This will help us understand the reasons for the current status of the programme, as well as the significant gap between the number of companies selected and the number of signed deals.

How our survey respondents became aware of the EIC Fund

61.9% of the selected companies had previous experience with grant funding and were already aware of the EIC Fund so believed that it would be a very good opportunity. However, 4.8% had not heard of the EIC Fund before but were made aware through their private investors. 

Initial experience with the EIC Fund

55% of respondents only faced a few obstacles, reporting a positive experience with the EIC Fund. 40%, on the other hand, faced many obstacles during their process with the EIC Fund however, out of that 40%, 5% believed that this caused a negative impact on their company. 

Key challenges that our survey respondents faced

75% reported that the key challenge they faced was the duration of the entire process. Interestingly, 95% of respondents found that the EIC Fund were lacking in terms of communication, support and transparency. 

Level of complexity with the application process

48% of the respondents found the application process to be complex and time-consuming with 9.5% believing it to be very complex. Likewise, 43% found the process to be clear and easy but acknowledge that it was also time-consuming. Overwhelmingly, the selected companies found this process to be time-consuming. 

Level of complexity with the evaluation and selection process

62% found the evaluation and selection process to be clear and easy but 24% also admit that this phase was time-consuming. 38% of the selected companies did find it to be complex and time-consuming. However, unlike with the application process, the respondents believed this phase was clear and easy. 

Level of complexity with the due diligence process

57% reported that the due diligence process was complex and time-consuming with 33% believing it to be very complex. However, 24% found this phase to be clear and easy yet still time-consuming. The due diligence process seems to be the phase that our survey respondents found complex. 

Level of complexity with identifying a lead investor

53% believed that identifying a lead investor was very complex and time-consuming. But, 29% of respondents have yet to begin this process and so it will be interesting to hear their thoughts once they begin to identify a lead investor. As a result, our survey respondents found this process to be the most complex. 

Level of complexity with communication between the EIC Fund/Lead investor and signing the deal

Overwhelmingly, 57% of our survey respondents have not started the process of communicating with the EIC Fund/lead investor and signing the deal, emphasising the gap between selected deals and deals that are yet to be closed. However, for those that have started this phase, 24% found it to be complex and time-consuming with 10% believing it to be very complex. 

How our survey respondents rated the support by the EIC Fund

43% rated the support by the EIC Fund to be good but accept that improvements are needed. 20% believed that these improvements need to be significant because they found the support to be below expectations. However, 29% believed that the support was very good although minor improvements are still needed.