What is the EIC Fund
The EIC Fund is the venture arm of the European Innovation Council (EIC). It was set up as a capital fund under private law with the European Commission as a shareholder to fund companies selected under the EIC Accelerator.
With a budget of over €10 billion, the European Innovation Council (EIC) is strengthening Europe’s leadership in deep tech innovation by generating a pipeline of startups with the potential to become unicorns.
The EIC Fund is bridging the funding gap for deep tech European startups that have market-creating potential but carry a high risk for private and public investors. The EIC Fund supports these companies with patient capital to minimize this risk.
- Main actors
- The European Commission (shareholder)
- The EIB (investment advisor and future investor of record)
- An external Fund Manager (manages portfolio and investment decisions)
- Qualified investors validate prospects
- Co-investors invest alongside the Fund
- Investment size
- €0.5M–€10M under the EIC Accelerator
- €10M–€30M under EIC STEP Scale Up
- What we support
- Game-changing innovators
- From early-stage startups to scaling deep tech leaders
- Across all verticals and across the EU and Horizon Europe countries
- Our edge
- Minority equity stakes (typically around 10% but can go up to 25%)
- Follow-on funding in subsequent rounds
- Thematic compartments for strategic tech areas
- 110+ trusted investors managing €360B+ assets (Trusted Investors Network)
Our structure
Key actors and responsibilities:
- EIC Fund Board
Oversees the Fund’s investment strategy and holds the broadest decision-making powers under the Fund’s statutes. - European Investment Bank (EIB)
Acts as the investor and investment advisor. Carries out due diligence, proposes investments, and supports portfolio management under an impact mandate. - EIC Fund Manager
An external authority responsible for managing the EIC Fund portfolio. Makes all investment and divestment decisions on selected companies, with the support of the EIB. - EIC Fund Advisory Committee (AC)
Provides independent advice and comments on individual cases to the EIB and the Fund Manager. - European Commission / EISMEA
Through the European Innovation Council and SMEs Executive Agency (EISMEA), the Commission:- Manages the grant component of the EIC Accelerator
- Conducts technology due diligence
- Ensures coordination between grant and equity components
- Provides Business Acceleration Services
- Operates the platform to connect companies with co-investors
This structure ensures a streamlined blend of grant and equity support, while crowding in private capital for Europe’s most promising deep tech companies.
Our investment principles
The investment component of the EIC blended finance aims to act as a catalyst to crowd in other investors both public and private. We further share risks by building a large network of capital providers and strategic partners suitable for co-investments and follow on funding.
- The EIC Fund’s main objective is “impact investment” rather than maximizing return on the investment.
- The EIC Fund usually targets minority ownership stakes (around 10% that can rise up to 25%) and up to a blocking minority in cases identified by the European Commission as of strategic interest for the EU.
- We always monitor investments and, in certain cases, support investee companies in subsequent rounds of capital increase.
- The EIC Fund also creates connections with specialized mentors, ecosystems and additional funding opportunities throughout the lifetime of the EIC investment.