Results - EIC Fund experience survey (investors in selected companies)

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.

Please find below an initial round of results based on inputs received from private investors involved in EIC Fund deals and/or in companies selected for equity investment in this programme.

How our survey respondents became aware of the EIC Fund

Three-quarters of private investors became aware of the EIC Fund through their existing portfolio companies. More specifically, their portfolio companies were selected for equity investment via the EIC Fund.

Survey respondents' previous experience with the EIC Fund

Half of the survey respondents mentioned that they are currently co-investing alongside the EIC Fund.

Key benefits for Private Investors getting involved with the EIC Fund's blended finance program (Top 3)

67% of respondents reported that a key benefit of the EIC Fund programme is having access to R&D and assessment expertise. There are currently 13,000+ expert evaluators under Horizon Europe spanning all industries and sectors. Other benefits reported include the lower level of risk associated with the investment as well as access to great companies.

Whilst most respondents agreed that there are benefits associated with the programme, some reported that there are no benefits for private investors.

Key challenges for Private Investors when engaging with the EIC Fund's blended finance programme (Top 3)

A clear cause of concern for 33% of private investors is the duration of the investment process. Furthermore, 25% of respondents believe that the complexity of the due diligence process is a challenge.

Interest in getting involved/continuing involvement with the EIC Fund

20% of respondents expressed interest in getting involved/continuing involvement with the EIC Fund. 40% of respondents expressed interest in engaging with the EIC Fund so long as it suits their investment thesis (e.g., geography, size etc.). Lastly, 40% reported that they are not interested in engaging with the EIC Fund due to its complex and time-consuming nature.

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, and 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.