The EIC Accelerator is a fantastic European fund (part of Horizon Europe) that gives UK small and medium sized innovators access to up to €2.5 million of non-dilutive funding.
As part of this programme, there also exists a vehicle to manage a further direct equity investment of up to € 15 million managed by the EIC Fund. This combination of grant and equity investment is referred to as blended finance.
Accessing blended finance from the UK
As of the time of writing (January 2022) there is not a direct way to access blended finance from the EIC Accelerator in the UK. UK SME’s are permitted (and encouraged!) to submit applications for all parts of the EIC funded by grants, including the Pathfinder scheme, Transition activities, and the non-dilutive grant part of the EIC Accelerator.
However, the equity investment portion remains out of bounds. The EIC writes ‘UK entities will not be eligible to apply for “blended finance” (which combines a grant with an investment component) and UK entities already awarded a “grant-only” support will not be eligible for follow up equity investments.’
Relocating from the UK to apply for blended finance
If your organisation is thinking about relocating to a European base (or is already in the process of doing so) then you may find yourself eligible to apply for blended finance in the future. ‘ A company located in UK, having submitted a successful short application, may relocate to an EU member state/Associated Country, before submitting their full application.’
Your European Grant Partners
Funding is out there.
Brexit has added a new layer of complexity to the European Grant Funding landscape for innovation-led and globally-minded businesses in the UK.
