The Dichotomy of EIC Accelerator's Step 3 Jury Evaluation

The European Innovation Council (EIC) Accelerator program plays a pivotal role in nurturing startups and Small- and Medium-Sized Enterprises (SMEs), especially in the DeepTech sector. However, the final step of this funding journey, Step 3, which involves a jury evaluation, presents a unique challenge. The jury's decision-making process has been observed to oscillate between seeking innovative DeepTech projects and favoring proposals with lower risk profiles.

  1. Unpredictable Outcomes and Technical Understanding: The Step 3 jury's evaluations have sometimes been unpredictable, with instances of proposals succeeding with minimal changes after an initial rejection. This randomness in selection raises questions about the evaluation process's consistency and the jury's technical comprehension in some cases​​.
  2. Preference for Commercial Success over High-Risk DeepTech: There's a growing trend in the EIC jury’s criteria leaning towards projects with immediate commercial viability. DeepTech projects, by their nature, often don't show profits for extended periods, typically up to five years. The jury, however, seems to be increasingly hesitant to fund such high-risk ventures, despite this being a characteristic of the DeepTech domain​​.

Implications for High-Risk DeepTech Companies

The EIC's approach presents a paradox for high-risk DeepTech companies. While the council aims to foster innovation in this sector, its jury's risk aversion may inadvertently sideline truly groundbreaking projects that require longer timeframes to reach commercialization. This tension between fostering cutting-edge innovation and mitigating risk creates a challenging environment for high-risk DeepTech companies seeking EIC funding.

Conclusion

The EIC Accelerator's Step 3 jury process is crucial for funding decisions, yet it operates within a complex interplay of seeking innovative DeepTech projects and a preference for less risky investments. This scenario necessitates a more balanced approach, where the transformative potential of high-risk DeepTech is not overshadowed by an excessive focus on short-term commercial success.