European Innovation Council Fund

What European Innovation Council Fund does

The European Innovation Council Fund (EIC Fund) is a public venture-capital investment vehicle established in 2020 as the equity investment arm of the European Innovation Council under the European Commission's Horizon Europe programme. Headquartered in Brussels and managed within the EU institutional framework by the European Innovation Council and SMEs Executive Agency (EISMEA), the fund bridges the funding gap for breakthrough deep-tech innovation that is too capital-intensive or risky for private investors alone. With a capitalisation exceeding €4 billion sourced from the European Commission, the fund provides minority equity stakes (typically ~10%, up to 25%) in startups, SMEs, and small mid-caps through two primary channels: the EIC Accelerator (€0.5M–€10M tickets for TRL 6–8 scale-ups) and EIC STEP Scale Up (€10M–€30M tickets for companies seeking €50M–€150M+ rounds). Deal flow is generated through a competitive EU selection process with an approximately 2% acceptance rate, followed by due diligence performed by the European Investment Bank, which also acts as investor of record, with portfolio decisions executed by an external fund manager.

The EIC Fund's portfolio spans 300+ companies across 25 European countries and covers a horizontal set of deep-tech verticals including quantum computing, AI semiconductors, biotechnology, energy/fusion, hydrogen, space, medtech, advanced materials, and dual-use/defence technologies. Cumulative signed investment agreements exceed €1.4 billion and the broader EIC ecosystem has mobilised €6.5 billion of total support. Co-investment leverage is a defining feature: for every €1 invested by the EIC Fund, portfolio companies raise approximately €3.50 from other investors, with €1.6 billion of co-investment mobilised across 600+ private investors from 2021 to 2024. The Trusted Investor Network formalises this with 111 institutional investors managing over €300 billion in AUM committed to co-investment. Patient capital is provided on a 7–10 year horizon (up to 15 years maximum), with milestone-based monitoring and follow-on capacity in subsequent rounds. Beyond capital, the fund offers EIC Business Acceleration Services (coaching, mentoring, corporate partnering, investor matchmaking) and access to the EIC Scaling Club (120 curated deep-tech scale-ups).

In 2026 the EIC Fund's mandate expanded materially with two new instruments: the STEP Scale Up Defence programme (€100M 2026 budget for drones, counter-drones, and missile defence) and the Scaleup Europe Fund — a €5 billion late-stage vehicle anchored by €1 billion from the European Commission, managed by EQT, and backed by a founding investor consortium including Novo Holdings, EIFO, CriteriaCaixa, Santander/Mouro, Intesa Sanpaolo group foundations, APG/ABP, Wallenberg Investments, and Allianz. The fund operates under a regulatory mandate to retain IP and strategic value within Europe, reflecting the EU's industrial-policy posture toward technological sovereignty.

Name

European Innovation Council Fund

Legal name

European Innovation Council Fund

Website

https://eic.ec.europa.eu

Company type

Public

Founded year

2020

Operating status

Operating

Short description

The European Innovation Council Fund is a €4B+ public venture-capital arm of the European Commission providing minority equity investments of €0.5M–€30M to 300+ deep-tech startups and scale-ups across 25 European countries in quantum, AI, biotech, energy, and dual-use technologies.

Ownership category

akta.pro rank

Product category

Venture Capital / Deep Tech Investment

NAICS

Other Investment Pools and Funds (5259)

SIC

Investors, Nec (6799)

akta.pro primary industry

Private Sector & Blended Finance Arms (IFC-type) (BPADACAJ)

akta.pro secondary industry

Sustainable Private Markets (Impact PE/VC, Private Credit, Infrastructure) (FSAAALAG)

Keywords

• Venture capital investment
• Deep tech funding
• Equity investments
• Innovation financing
• Startup capital

Headquarters

HQ city

Brussels

HQ country

Belgium

HQ region

Europe

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Operations, Personnel, Others

Revenue model

1. Equity Investment Returns: The EIC Fund makes minority equity stakes (typically around 10% but can go up to 25%) in deep tech startups and SMEs. Returns come from exit events including IPOs, acquisitions, and secondary share sales. Patient capital with long-term horizon of 7-10 years, max 15 years.

Pricing tiers

Go-to-market motion1 record

Distribution channels4 records

Marketing channels4 records

Core offering

The European Innovation Council Fund is the venture capital investment arm of the European Innovation Council, providing minority equity investments ranging from €0.5M to €10M under the EIC Accelerator and €10M to €30M under EIC STEP Scale Up. It bridges the funding gap for high-risk deep tech startups and SMEs across Europe by taking typically ~10% (up to 25%) equity stakes, with patient capital over a 7-10 year horizon.

Product overview

The European Innovation Council (EIC) — anchored by the EIC Fund — is a public funding ecosystem offering a portfolio of complementary programmes spanning the full innovation lifecycle, from early-stage research (EIC Pathfinder, EIC Pre-Accelerator) through market-readiness validation (EIC Transition) to commercial scaling (EIC Accelerator, STEP Scale Up, STEP Scale Up Defence), all supported by Business Acceleration Services (BAS). The EIC Fund acts as the equity investment arm providing EUR 0.5M–10M under the Accelerator and EUR 10–30M under STEP, alongside a broader suite of prizes (European Prize for Women Innovators, European Capital of Innovation Awards) and the newly launched Scaleup Europe Fund (EUR 5 billion, managed by EQT). Together these instruments deploy over EUR 6.5 billion of support to Europe's deep-tech innovators.

Differentiator

Problem solved

Functional benefit

Products and services

• EIC Pathfinder Research & Innovation grants of up to €4 million for breakthrough deep-tech research teams and consortia developing projects from laboratory to prototype stage (TRL 1-4), including booster grants and coaching/mentoring.
• EIC Transition Grants of up to €2.5 million for SMEs, spin-offs, and research organisations maturing and validating novel technology toward TRL 6 and market readiness, building on EU-funded project results.
• EIC Accelerator Scale-up grants and equity investments combining lump-sum grants below €2.5 million with equity investments of €1-10 million for startups, SMEs, and small mid-caps with market-creating or market-disrupting innovations at TRL 6-8.
• STEP Scale Up Equity investments of €10-30 million to catalyse larger funding rounds of €50-150 million+ for scaling breakthrough innovations in digital, deep tech, clean tech, and biotechnologies under the Strategic Technologies for Europe Platform (STEP).
• STEP Scale Up Defence Equity-only investments of €10-30 million for scaling strategic technologies in critical defence areas including air and missile defence, drones, and counter-drones, with total 2026 budget of €100 million.
• EIC Pre-Accelerator Early-stage deep-tech startup grants of €500K-1 million for companies in widening countries to develop technology, business, and investment readiness (TRL 4-6), with a total budget of €40 million in 2027 and free access to Business Acceleration Services.
• Advanced Innovation Challenges High-risk, demand-driven deep-tech innovation support with transformative potential, using a two-stage funding model: €300,000 lump sum for stage 1 feasibility and up to €2.5 million for stage 2 development, shaped by EIC Programme Managers.
• EIC Business Acceleration Services (BAS) Support services beyond funding including coaching, mentoring, corporate partnering, investor matchmaking, international trade fair access, procurement programmes, and scaling club membership for EIC awardees and Accelerator applicants.
• EIC Fund The venture capital investment arm of the European Innovation Council, providing equity investments ranging from €0.5M-10M under the EIC Accelerator and €10M-30M under EIC STEP Scale Up, with over €1.4 billion in signed investment agreements supporting 300+ companies across 25 countries.
• Scaleup Europe Fund A multi-billion late-stage and growth fund targeting €5 billion to invest in strategic tech areas including AI, quantum, semiconductors, robotics, energy, space, biotech, and medical technologies, managed by EQT and anchored by €1 billion from the European Commission.
• European Prize for Women Innovators

Quantifiable outcome

• 3.5 Euros raised by portfolio companies for every 1 Euro invested by EIC Fund
• +3 more outcomes

Named customers8 records

Segments2 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Scale indicators11 records

Recent moves7 records

Expansion highlights6 records

Direct peers

• KfW Capital: German state-backed venture capital fund-of-funds manager, subsidiary of KfW. Provides capital to German and European VC funds with a focus on innovation and deep tech, structurally similar to EIC Fund as a public-mandate investor in private VC ecosystems.
• Atomico: London-based European-focused venture capital firm founded by Skype's Niklas Zennström. Member of EIC Fund's Trusted Investor Network and active co-investor in European deep tech and growth-stage rounds, with comparable sector focus and ticket sizes.
• Bpifrance: French public investment bank providing equity, loans, and guarantees to French startups and scale-ups, including deep tech. Operates as a sovereign-style investor with a national mandate analogous to the EIC Fund's EU-wide mandate, often co-investing with EIC (e.g., leading Quobly's €115M Series A).
• CDP Venture Capital: Italy's sovereign venture capital fund manager backed by Cassa Depositi e Prestiti. Invests across Italian and European deep tech with multi-stage mandates, and co-invested alongside the EIC Fund in Proxima Fusion's Series A extension — a near-perfect structural mirror of the EIC Fund at the national level.
• Breakthrough Energy Ventures: Bill Gates-backed private venture fund investing exclusively in deep tech companies tackling climate change. Highly comparable to EIC Fund in deep tech sector focus and patient capital horizon, though privately funded rather than publicly mandated.
• Invest-NL: Dutch national investment institution with €2.5B+ mandate to finance Dutch and European transitions including biotech and deep tech. Direct co-investor with EIC Fund in Leyden Labs (€40M round), and operates a comparable mission-driven, patient-capital model for innovation funding.
• Israel Innovation Authority: Israeli government-funded authority providing grants and equity-like instruments to deep tech startups. Structurally comparable to EIC Fund as a national innovation authority with mission-driven capital allocation to breakthrough technology sectors.
• High-Tech Gründerfonds (HTGF): Germany's largest public-private seed and early-stage investor for high-tech startups with public mandate partners including German Federal Ministry for Economic Affairs. Provides similar early-stage deep tech equity with public backing, complementing EIC Fund's later-stage focus.

Broad incumbents

• European Investment Bank (EIB): EU's long-term lending bank and the EIC Fund's investment advisor and investor of record. Provides much larger-scale debt and equity financing across the EU economy including direct VC activity; broader institutional mandate beyond deep tech specialisation.
• EQT: Major European private equity and venture capital firm selected as Fund Manager for the new Scaleup Europe Fund (€5B target). Overlaps with EIC Fund in European deep tech and growth equity investing but operates as a private, return-only firm across much wider sectors.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat6 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xx.com/EUeic
• YouTubeyoutube.com/@eiccommunity
• Facebookfacebook.com/EuropeanCommission
• LinkedInlinkedin.com/showcase/european-innovation-council

Revenue estimate

Valuation estimate

Number of profiles

Profiles3 records

Funding overview

Funding rounds1 record

Investors1 record

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M&A

Investments66 records

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about European Innovation Council Fund