DEEP TECH EUROPE European Innovation Council Pilot Impact Report 2020

Research and Innovation EUROPEAN COMMISSION

Deep Tech Europe European Innovation Council Pilot Impact Report 2020 Executive Agency for Small and Medium-sized Enterprises

European Commission B-1049 Brussels Manuscript completed in September 2020

The views expressed in this document are the sole responsibility of the authors and do not necessarily reflect the views of the European Commission. More information on the European Union is available on the internet (http://europa.eu). Luxembourg: Publications Office of the European Union, 2020 ISBN 978-92-9460-218-3

DOI 10.2826/770124

EA-03-20-597-EN-N

For any use or reproduction of photos or other material that is not under the EU copyright, permission must be sought directly from the copyright holders. 4 1. What is the European Innovation Council Pilot?

As Europe emerges from the worst economic crisis in recent times, 8 2. How do we measure success? the role of research and innovation is more important than ever. We face many challenges posed by the COVID pandemic and the EIC Key Performance Indicators transition to a fair, climate neutral, sustainable and digitally enabled economy, the solutions for which will come from novel technologies 14 3. EIC Accelerator and its portfolio of companies and disruptive innovations. 15 How the companies are selected The European Innovation Council (EIC) Pilot aims at identifying, 17 Our portfolio of companies supporting and accelerating the scale up of breakthrough technologies and game-changing innovations. Europe has no lack 26 EIC Accelerator Portfolio performance of scientific and entrepreneurial talent, but our innovators do not always have the opportunity to grow their ideas in Europe. The EIC Pilot supports those individual research teams and entrepreneurs 37 4. EIC Pathfinder and its portfolio of technologies with visionary ideas and the ambition to grow in Europe. 39 How the projects are selected Mariya Gabriel Commissioner for Innovation, 40 The EIC Pathfinder portfolio of technologies I am extremely proud of what the EIC has achieved in its current Research, Culture, Education pilot phase. This report brings together an impressive set of data and 43 EIC Pathfinder Results - -from research to innovation and Youth examples that demonstrate a range of high-impact endeavours. In 49 Impacts of FET - What do we learn from Pathfinder’s predecessor? the last year alone, over 10,000 of Europe’s most exciting innovators, startups and SMEs were attracted by the programme and applied for support. It has pioneered a new blended finance approach (combining 51 5. How to work with the EIC Portfolio grant and equity support) and set up the first ever EU investment fund (EIC Fund) dedicated to directly invest in and accompany the 51 Become an EIC Evaluator growth of potential game-changing EU startups and SMEs. It has 52 Co-invest with the EIC Fund demonstrated its agility and responsiveness by responding rapidly Join the EIC Business Acceleration Services to the COVID crisis, actively supporting woman innovators, engaging 52 a diversity of innovators from all fields and countries contributing to reduce the Innovation Divide in Europe, and supporting companies to 60 6. EIC Deep tech innovations for recovery attract over €4 billion of further investment. 60 The health sector after COVID-19 2020 is an important year for preparing the fully-fledged EIC, which 65 Digital technologies for the recovery will be established as a flagship of the new EU framework programme for research and innovation, Horizon Europe (2021 – 2027). It will 69 Innovations supporting the Green Deal provide unique opportunities to build a true European Innovation Area by connecting innovation ecosystems and bringing together our innovative researchers, startups, investors and companies from across Europe and beyond. It will put Europe at the forefront of the next generation of breakthrough technologies and market-creation companies, hence supporting EU tech sovereignty while keeping a strong international cooperation component, competitiveness and sustainable development for the benefit of EU citizens. I can only encourage everyone who has an interest in European innovation to look at what has been achieved, to witness how Europe is changing fast to meet current and future challenges, and to take part in the next chapter of the EIC as it becomes a full reality in 2021.

3 Currently in its pilot phase (2018- to run the portfolio of projects in a 1. WHAT IS THE EUROPEAN 2020), the European Innovation flexible way, and blended finance (a Council will be fully implemented combination of grant and equity) INNOVATION COUNCIL PILOT? from 2021 under Horizon Europe, under the EIC ‘Accelerator Pilot’. To compete on global markets, Pathfinder and Accelerator. It includes the EU’s next seven-year framework To capitalise on previous grants, increasingly defined by new results from the predecessors of these programme. The EIC’s pilot phase the EIC promotes the transition of technologies, Europe needs to schemes launched in Horizon 2020: has enabled the Commission to test projects from EIC Pathfinder as well capitalise on its excellent research Future Emerging Technologies (FET) the main features brought in under as other programmes like European and start-up ecosystem. That is and SME Instrument. EIC Partners, Horizon Europe, namely targeted calls Research Council projects, to the why the European Commission has including investors, corporates and for future and emerging technologies EIC Accelerator, through Transition launched the European Innovation buyers will discover why and how under the EIC ‘Pathfinder Pilot’ to innovation activities - additional Council (EIC) pilot, a flagship initiative to work with the EIC portfolio of (including Transition to Innovation grants aiming at bringing research that supports the most talented innovations. activities and the Innovation results to further innovation stages. European innovators in scaling-up Launchpad), programme managers their breakthrough innovations fast From 2021, the full EIC will be and efficiently. launched with an expected budget of over €10 billion (2021-27) and EIC Budget This report focuses on the results enhanced funding and support. and impacts of the main two funding schemes of the EIC Pilot – EIC € bn Funding €3 bn 10 EIC pilot in Horizon 2020 EIC in Horizon Europe The EIC is a one-stop-shop for instruments: the EIC Pathfinder – (2018-2020) (2021-2027) innovators, providing support from to support early applied research the idea stage to all the way to and the EIC Accelerator to support the market entry. To cover the two the commercialisation and scale-up Business Acceleration Services key dimensions of the innovation phase. In addition to funding, EIC The EIC also offers its beneficiaries process, the EIC has introduced two beneficiaries receive tailor-made a virtual meeting-place, called the business coaching and business EIC Community Platform, where The EIC The EIC acceleration services. With a network companies and researchers can of 750 international business connect, share their experiences, Pathfinder Accelerator coaches and a growing community of find investors, coaches, corporates Grant up to €4 million Blended finance (grants or grants and equity of up to global business and finance partners and leverage potential businesses Target: breakthrough, €15 million or more) from the corporate and VC world, partnerships. research projects, exploring the EIC offers its innovators specific radically new areas aiming Target: SMEs with a radically business support and coaching, at developing, disruptive new, highly risky, non- ranging from setting up an SME to technologies with market bankable ideas and with a creation potential. potential to scale up. getting companies ready to scale up and go global. 4 5 EIC Fund European Innovation Ecosystem The EIC Fund is the investment equity or quasi-equity investments The ambition of the EIC is to reach far national & regional innovation arm of the EIC. It fills the funding in companies, with ownership stakes beyond the funding and innovation agencies, universities, technology gap at the start-up stage where expected to be in general from 10% support. It aims to create a better transfer offices, accelerators and the EU venture capital market to 25. and more connected innovation incubators, public and private buyers, underperforms compared to the ecosystem in Europe. For this reason, stock exchanges, corporates and global venture capital market. The EIC The European Investment Bank it also deploys activities fostering investors among other actors. Fund provides investments from €0.5 acts as advisor of the EIC Fund and dialogue and cooperation between million to €15 million to companies manages the ownership stakes of selected for blended finance support the European Commission. The EIC EIC Timeline (grant and equity) under the EIC Fund is proactively looking for private Launch EIC predecessors Accelerator. This is the first time the investors ready to co-invest into the 2014 in H2020: SME Instrument and FET European Commission makes direct supported companies. Announcement of the EIC Pilot Advisory board 2017 In June 2019 the Commission pilot and leads the strategy and 2018 Establishment of High Level Expert Group appointed 22 exceptional innovators design of the EIC under Horizon First calls bottom up and with jury interviews from the worlds of science and Europe. The members of the Board technology, entrepreneurship, and also increase the visibility of the EIC Launch of the Enhanced EIC Pilot venture capital to the European and promote Europe as an attractive Innovation Council Advisory Board, place for breakthrough and disruptive 2019 First meeting of the EIC Advisory Board which provides strategic leadership innovation. In June 2020 the Advisory First blended finance call to the EIC. The independent Board Board published its Vision and oversees the roll out of the current Roadmap for the future. 2020 Pathfinder's first Transition to Innovation Call First Top down Call in Accelerator (Green Deal) Professor Mark Ferguson Start of first Programme Manager Chair EIC Advisory Board Establishment of the EIC Fund “The Advisory Board is focused on helping to create the EIC as the investor of choice for high impact, market creating, deep tech European entrepreneurs. The EIC will: First Investment by EIC Fund* crowd in other investors through the excellence of the projects it selects and the network of investors it develops, attract corporate partners through focussed Launch of the fully fledged events, provide outstanding mentoring and business services and uniquely offer EIC under the Horizon Europe* blended finance of grant and equity to allow innovators to rapidly scale. The EIC itself will implement agile, simple, rapid, but thorough, assessment processes. Start of Horizon Europe Our focus is to provide European innovators from diverse backgrounds with the 2021 opportunity to rapidly develop and scale their innovation in Europe, so benefiting First EIC Calls under Horizon Europe * all European citizens and allowing Europe to create the future we want.” *Foreseen 6 7 2. HOW DO WE MEASURE SUCCESS? EIC KEY PERFORMANCE INDICATORS The EIC Advisory Board was ups and SMEs) at EU and international mandated, among other things, to levels along the pathway from idea Societal Impact Economical Impact Attraction work on the framework that would to market1”. “EIC-supported “EIC-Supported “EIC is the hallmark companies contribute companies add of investments in allow to measure the success of the substantially to significantly to European entrepreneurs and programme. They have defined the In accordance with these objectives the SDGs and to GDP and jobs” researchers, being equal objectives of the EIC as: and in line with the Horizon Europe Europe’s sustainability and gender-balanced” Key Performance Indicators (KPIs), transformation” “Identify, develop and deploy high they have developed the KPIs The overarching message is that the power of the EIC is being a beacon risk innovations of all kinds with based on three storylines: societal EIC is the hallmark of investments that establishes Europe as the 21st a strong focus on breakthrough, impact, economic impact and in innovative researchers and century technology and innovation market-creating and/or deep-tech” attractiveness. entrepreneurs. It vouches for leader, with technological sovereignty and to “support the rapid scale-up of 1 EIC Advisory Board, The European Innovation equality and gender balance, and and full consciousness of the urgent innovative companies (mainly start- Council - A Vision and Roadmap for Impact. the EIC-supported companies and global need for climate-neutrality innovations substantially contribute and sustainability in the future. KPI framework developed by the EIC pilot Advisory Board to sustainability with a particular Thanks to this framework of KPIs, focus on health, resilience, the green the EIC monitors its progress and Short-term Medium-term Long-term and digital transitions, the GDP and achievements and communicates indicators indicators indicators jobs in Europe. them to potential applicants, as of year 1+ as of year 3+ as of year 5+ investors, policy makers, the wider Share of EIC- A successful EIC carries the vision that ecosystem. European innovation creates impact Which SDGs supported, disruptive connecting industry, academia, Although EIC is still in the Pilot phase, EIC-supported companies based Green Deal companies on technologies Impact Indicators politicians, entrepreneurs, and the it already delivers on 4 KPIs: Impact Societal contribute to from EIC and other broad European public. The real institutions

Market Number of capital multiple scaleups Contribution (min 3x) and their to European GDP Impact turnover Economic Equal and gender-balanced Share of women Net Promoter participation among key Score for key of key target target groups target groups groups and in

Attraction EIC-supported companies 8 9 %

SDG 2: Zero Hunger SDG 3: Health and Well-being 9% KPI 1. Which SDGs EIC-supported SDG 7: Affordable and Clean Energy How EIC supports women 3% companies contribute to SDG 9: Industry, Innovation, And SDG 2: Zero Hunger Infrastructure 35% 6% innovators? SDG 11: Sustainable cities and 14% SDG 3: Health and Well-being 9% communities 35% In Europe women continue to be Concrete measures introduced by SDG 12: Consumption and 3% Production 9% SDG 7: Affordable and Clean Energy underrepresented both in research EIC resulted in 34% of companies SDG 13: Climate Action selected in the May funding round SDG 9: Industry, Innovation, And Infrastructure and the35% tech field, especially when 3% are led by women. SDG 16: Peace, Justice And Strong moving up the academic14% and Institutions 6% 14% SDG 11: Sustainable cities and communities No SDG Supported 2% 24% corporate ladder. 6% SDG 12: Consumption and Production 24% • EU prize for Women Innovators. 1% 2% SDG 13: Climate Action On the other hand, studies show SDG 16: Peace, Justice And Strong Institutions 6% 2% 1% that diverse companies24% and mix • Concrete measures to ensure 6% No SDG Supported funds 6% perform better. Increasing that a sufficient number of the participation1% of women in deep EIC Accelerator and Pathfinder KPI 2. Market capital multiple (minimum 3x) tech is not only a matter of fairness applications are led by women. Each euro invested by EIC brought a leverage of private follow-up but also a case of excellent science Since May 2020, the EIC is investments of: and economic business case. EIC guaranteeing that the pool of the is proactively seizing this great best applicants passing all the opportunity for growth. quality thresholds and invited to interviews will be composed of x3,3 x2,9 Within the EIC portfolio, the gender at least 25% of companies led for companies selected in for companies selected in balance is monitored as an official 2015 over 4 years 2016 over 3 years KPI: 30% of researchers involved KPI 3. Share of women among key target groups in Pathfinder are female and 17% (female CEOs, female researchers – at least 35%) of companies selected in the EIC Accelerator blended finance calls are led by women.

To increase the participation of of30 female researchers% 15of female %CEOs women in the deep tech field EIC For the blended finance calls launched a number of initiatives: KPI 4. Share of scale-ups valued >€100 million • Gender parity in the pool of and their turnover expert evaluators and juries of EIC interviews and EIC Fund 5% Investment Committee. Of the EIC portfolio is valued >€100 million

10 11 by women CEO (or equivalent • EIC Business Acceleration position). This measure brought Services run women leadership already very concrete results. programmes featuring dedicated Out of 64 companies selected coaching and pitching activities Flavia Wahl in May, 22 or 34% are led by as well different outreach Co-founder | iBreve women! This contributed to an initiatives to raise awareness and The Irish company, iBreve has developed a new patent-pending wearable overall increase in the female showcase women researchers technology that analyses respiratory patterns in real-time, enabling market applications for stress reduction, remote monitoring and chronic led companies from 8% to 15% and entrepreneurs as role models. disease management. iBreve won several innovation challenges, (blended finance calls only). received funding for its dedication to sustainability and was featured in large newspapers around the world. The Co-founder Flavia Wahl was featured in Forbes’ 53 Women-Led Start-ups Disrupting HealthTech.

DISCOVER TOP EIC WOMEN INNOVATORS:

Rosa Palacín Dr Patricia Scanlon Project Coordinator | CARBAT CEO | SoapBox Labs Professor M. Rosa Palacín is deputy director at Institut de Ciencia de Patricia Scanlon is the CEO of SoapBox Labs and was one of two Irish Materials de Barcelona (CSIC). She coordinates project CARBAT that women named by Forbes magazine in its global “top 50 women in proposes to replace traditional lithium-based batteries with calcium tech” ranking last year. SoaBox Labs is developing speech recognition based batteries for higher energy density. She is also vice-president of technology aiming to help children with literacy and fluency. Over the the International Battery Association, former co-director of Alistore ERI last three years, SoapBox Labs has raised €10.8 million from investors, and serves in the Governing Board for Batteries Europe ETIP. including Elkstone and an EIC grant in 2018 of €1.4 million. The company was also featured on Silicon Republic’s 10 amazing European AI start-ups to watch list as well as one of Europe’s top startups by Wired Magazine.

Christine Mummery Project Coordinator | ORCHID Cristina Fonseca Christine Mummery is professor of Developmental Biology in the Department of Anatomy and Embryology at Leiden University Medical CEO | Cleverly.ai Center and member of the Royal Netherlands Academy of Science. She Cristina Fonseca is a serial entrepreneur who co-founded Talkdesk coordinated ORCHID project and created a roadmap for organ-on-chip and Cleverly.ai. The company developed a language-agnostic AI-based technology and built a network of all relevant stakeholders. In 2014, she customer support assistant and received EIC grant in 2019. Cristina was awarded the prestigious Hans Bloemendaal Medal for innovative Fonseca is now Venture Partner at Portugal’s largest independent interdisciplinary research, she is a member of the scientific advisory private VC fund, Indico Capital Partners. She was listed among the TOP board for Sartorius AG and currently president of the International 50 Europe’s most influential Women in the Start-up and VC Space. Society of Stem Cell Research.

12 13 3. EIC ACCELERATOR AND 3.1. How the companies ITS PORTFOLIO OF COMPANIES are selected The EIC’s Accelerator supports high-risk, high-potential innovative small and medium-sized enterprises (SMEs) willing to develop and commercialise new products, services and business models that could drive economic growth and shape new markets or disrupt existing ones in Europe and worldwide. The EIC pilot Accelerator provides: 9700 2400 100 2-3% applications independent expert experienced investor success rate • A grant-only support to SMEs carrying out any type of innovation ranging in a year evaluators specialised & entrepreneur jury from incremental to breakthrough and disruptive innovation and aiming in the field members to subsequently scale up. Start-ups and scale-ups can apply at result within one month and receive • Blended financesupport to SMEs carrying out breakthrough and disruptive any time of the year. Each applicant is the first part of their grants within non-bankable innovation. assessed by independent experts on five months on average from the their potential social and economic application date. For the equity part impact, on their capacity to create of blended finance, additional due How does the accelerator work? new markets and scale up, on the diligence is undertaken by the EIC high risk and high potential nature Fund to structure the investment. Option of an equity investment of their innovation and, finally, on of up to Grant funding their business plan. The companies Projects that do not receive funding €15 million of up to with the highest assessment are but are deemed high quality by the €2.5 million, 70% cost invited to make a live pitch to a evaluators are awarded Seal of jury of experienced investors and Excellence. It serves as a quality entrepreneurs who take final go/no- label to recognise the value of the For developing go decision. proposal and helps other funding and scaling bodies take advantage of the EIC up high risk Around 2-3% of applying companies evaluation process. Since October innovations All fundding is open, no got through this strict evaluation in 2019, 2537 companies from 40 predefined 2019. They are informed about the countries have received Seal of thematic areas Excellence Certificates.

Access to EIC Gender of EIC Accelerator coaching and Pilot jury members mentoring services, pitches with corporates, VCs, etc. 49% 51%

14 15 Background of 3.2. Our portfolio of companies 8% EIC AcceleratorBusiness angel The EIC Accelerator portfolio includes young, market-challenging start-ups 19% Pilot jury members companies selected under the EIC aiming for fast scale-up, as well as Coming from 35 different countries Accelerator Pilot and its predecessor, more established businesses that Serial Entrepreneurs 24% the SME Instrument that offered are innovation champions in their 8% Business angel only grant funding, under different field. Service-oriented companies 19% Innovation and Industry selection criteria and only through come to the EIC Accelerator to launch remote evaluation2. The launch of their first product on the market. 22% Specialists Serial Entrepreneurs the EIC pilot brought progressively Finally, university spin-offs use the 24% Venture Capitalist major modifications to the previous programme to develop the market scheme: bottom-up calls for SMEs feasibility of their technologies. 27% Innovation and Industry SpecialistsOther (previously, this support was 22% restricted to predefined thematic Around 71% of the companies in the Venture Capitalist areas), face to face interviews with a portfolio received €50 000 grants panel of experienced innovators and, (SME Instrument Phase 1) and 29% 27% Other finally, blended finance support with successfully competed for funding new evaluation criteria. above €0.5 million (SME Instrument Phase2 and EIC Accelerator). All The EIC Accelerator portfolio went through a stringent evaluation includes now around 5500 firms. The process as previously explained. COVID-19 companies are active in all sectors,

In March 2020, the EIC pilot and include all sizes, ages, profiles 2 Under the SME Instrument running from 2014, Accelerator marked a record number and verticals coming from 28 EU Phase 1 grants offered a lump-sum of €50 000 to carry out a concept and feasibility assessment of 3883 eligible applications Member States and many Horizon and Phase 2 grants gave an amount between €0.5 submitted for a single cut-off. 2020 associated countries, including million and €2.5 million for innovation activities Faroe Islands, Iceland, Israel, such as demonstration, testing, prototyping, pilot The increase was mainly due to lines, scale-up studies and market replication. From applications to tackle the COVID-19 Norway, Serbia, Turkey, Ukraine and October 2019 Phase 1 disappears and SMEs can crisis, and in response an extra €150 Switzerland. It has attracted both also apply for blended finance support. million was made available to fund COVID-19 related projects.

5500 ~1600 39 €2.78 bn companies with funding countries in grants, above €0.5 €582 m million in equity

16 17 18 Faroe Islands (the) Islands Faroe United Kingdom United Luxembourg Netherlands Switzerland Greenland Lithuania Denmark Germany Gibraltar Romania Slovenia Portugal Slovakia Bulgaria Hungary Armenia Belgium Anguilla Sweden Georgia Ukraine Czechia Norway Estonia Croatia Finland Iceland Austria Tunisia Ireland Greece Cyprus Poland France Turkey Serbia Latvia Malta Israel Spain Italy 0 0 0 0 0 0 1 1 1 1 1 1 2 2 2 3 3 3 5 6 6 6 6 7 7 8 9 10 11 12 13 13 15 17 17 19 20 22 24 27 28 31 32 35 36 49 57 57 62 63 67 69 82 89 96 97 100 101 109 119 127 133 137 141 162 167 172 192 204 210 224 243 254 257 257 265 317 (2014-2020) companies Accelerator EIC (2019 Seal ofExcellence– 343 377 459 - 2020)

EIC Accelerator 701 SoE companies by country 930 Anguilla, 2 119 (36) Portugal Faroe Islands,7(1) Greenland, 1 141 (63) Ireland Iceland, 67(31) Gibraltar (1) 930 (317) Spain 459 (100) Kingdom United Faroe Islands (the) Islands Faroe United Kingdom United 343 (172) Luxembourg France Netherlands Switzerland Greenland Lithuania Denmark Germany Gibraltar Romania Slovenia Portugal Slovakia Bulgaria Hungary Armenia Belgium Anguilla Sweden Georgia Ukraine Czechia Norway Estonia Croatia Finland Iceland Austria Belgium Tunisia Ireland Greece Cyprus 82 (57) Poland France Turkey Serbia Latvia Malta Israel Spain 210 (109) Luxembourg Italy Denmark 257 (167) Netherlands 10 (3) Switzerland 133 (96) 204 (224) Norway 0 0 0 0 0 0 1 1 1 1 1 1 2 2 2 3 3 3 5 6 6 6 6 7 7 8 9 10 11 12 13 13 15 17 17 19 20 22 24 27 28 31 32 35 36 49 57 57 62 63 67 69 82 89 96 97 100 101 109 119 377 (257) 127 133 137 Germany 141 162 167 172 192 204 210 224 243 254 257 257 265 Italy 701 317 (192) 254 (137) 343 127 (57) Sweden Tunisia (1) 377 Austria Czechia, 28(8) Slovenia 69 (17) 459 Croatia 6 # EICAccelerator Companies(#Sealof Excellence) Malta, 6 Poland, 97(22) Hungary, 89(35) Slovakia, 24(19) 701 Serbia, 6(1) 162 (101) Finland 930 Lithuania Greece 27 (3) 32 (9) 62 (13) Estonia Latvia 17 (6) Romania 13 (3) Bulgaria 15 (2) Ukraine, 10(5) Georgia (2) Armenia, 1 Cyprus, 12(7) Turkey, 49(20) Israel, (243) 265

19 !"#$%&'($)*"+,-,*"./01 2%3$4$5"67"89:; Portfolio companies by size at selection Portfolio companies by age Most SMEs in the portfolio are small. Almost 2/3 are micro companies with The EIC Accelerator attracts a significant number of start-ups. While start-ups represent 60% of less than 10 employees. This was an increasing trend up until 2020 when this companies, 2020 marks a shift share decreased to 48% and the share of small companies (10-49 employees) According to the EU State-aid towards selecting larger companies: increased. Regulation for R&D3, start-ups are young but increasing in staff. 100% defined as unlisted small enterprises 100% 90% up to five years following their 2020 marks a shift towards selecting registration. They have not been more mature companies, that while 90% 80% 100% 46% 48% formed through a merger, and they still young already managed to 80% 70% 90% 55% 58% 60% 46% 48% 63% 62% do not have distributed profits increase their staff on the way to 55% 58% 100%70% 80% 60% 60% 63% 62% yet. The share of start-ups joining scale up. 46% 48% Micro (1-9 employees) 90%60% 70% 55% 58% 60% 63% 62% the programme has been steadily 3 50% Small (10-49 employees) Commission Regulation (EU) No 651/2014 of 17 June 2014 declaring certain categories of aid 80%50% 60% increasing since the start of the 46% 40% 48% Medium (50-249 employees) compatible with the internal market in application 55% 70%40% 58% 60% programme with 47% in 2014 and 50% 63% 62% of Articles 107 and 108 of the Treaty Text with EEA 30% 34% Large (250 employees63% in 2020. and more) relevance 34% 47% 60%30% 40% 31% 31% 31% 31% 47% 31% 31% 30% 31% 20% 30% 31% 34% 50%20% 30% 31% 47% While start-ups (up to 5 years old) 31% 31% 10% 30% 31% 40%10% 12% 20% represent 60% of selected companies, 12% 9% 9% 9% 8% 7% 6% 9% 8% 7% 6% 3% 34% 0% 3% 30%0% 10% 47% 100% 31% 31% 12% 2014 2015 2016 201731% 20189% 20199% 20208% 9% 2014 2015 30% 201631% 2017 20187% 20196% 2020 20% 0% 3% 19% 18% Large (250 employees and more) Medium (50-249 employees) 90% 23% 2014 2015 2016 2017 2018 2019 2020 30% 27% 10% 32% 12% Small (10-499% employees) Micro (1-9 employees) 80% 9% 8% Large (2507% employees6% and more) Medium (50-249 employees) 28% 3% 0% 18% 18% 2014 2015 2016 2017Small (10-492018 employees)2019 2020 Micro (1-9 employees) 70% 100% 21% 19% 9% Large (250 employees and more) Medium (50-249 employees) 90% 19% 18% 60% 22% 23% 27% 21% 32% 30% Small (10-49 employees) Micro (1-9 employees) 80% 50% 28% 18% 18% 70% 21% 19% 40% 60% 21% 22% 30% 50% 63% 63% 63% 55% 54% 40%47% 48% 20% 30% 63% 63% 63% 55% 54% 10% 47% 48% 20%

0% 10% 20140% 2015 2016 2017 2018 2019 2020 2014 2015 2016 2017 2018 2019 2020 Up toUp five to five years years 66 to to 10 10 years yearsmore thanmore 10 thanyears 10 years

20 21 Portfolio companies by industry Portfolio companies by customer targeted The EIC Accelerator funds companies When it comes to customers, a large in all industry sectors.4 The top 3 Most of the funded companies majority (77%) of companies target 77% of companies target B2B users are active in the health, energy or industry sectors in the portfolio are: enterprise software industry B2B users with their product or health (1262), energy (922) and service. One fourth concentrates on enterprise software (735). B2C. 4 This categorisation indicates the market in which a given company operates. It is useful to bear in mind 1262 that an SME can be active on more than one market.

23% Number of companies by industry 23% B2B B2B 922 B2C 77% B2C

735 77%

Poland Sector Fintech EIC funding €1.9 m Billon Group: Shaping a Paperless Banking Future 424 EIC-funded Billon Group is providing a platform powered by Distributed 396 Ledger Technology (DLT) and based on a new type of architecture, which is able to store documents entirely in blockchain. The Polish-British fintech 354 innovation can build paperless offices across businesses and organisations. Retail banks in Poland already started providing customers with notifications 281 of commissions and fee changes on blockchain via a new document management product provided by Billon Group. The aim is to eliminate 223231 paper-based client-facing notifications, as well as to fully comply with the European Union’s financial records-related regulations, including GDPR. After receiving EIC funding, Billon has raised over $16 million in growth capital 142145 with its most recent Series A round. This capital will be used to develop 126133136 101 COVID-19 immunity certificates using blockchain. 60 42 55 56 Robert Kałuża 18 21 24 24 25 31 1 11 Co-founder and COO

Dating Hosting Event Tech Kids Legal Music Recruitment Gaming Wellness Travel Sports Fashion Education Telecom Media Fintech Marketing Living Home Security Estate Real Robotics Semiconductors Food Transportation Software Energy Health “The EIC-funding is absolutely crucial in furthering the development of our research and expanding the possibilities of the platform. That way we keep our technological advantage, our key selling point to the outside world”.

22 23 Blended finance: a unique support to Profile of blended finance companies innovative companies Who are the companies applying for with less than 5 years on the market. A novel scheme with clear mission blended finance? Are they different At the time of the application, 42% With an estimated total equity in general from 10% to 25% in start- from SMEs receiving grant-only of blended finance and 47% of grant- funding gap of about €70 billion, up companies. support? The following analysis only companies received already there is a substantial lack of finance shows a comparison between private investments. Blended finance for breakthrough and disruptive The equity part is managed by the EIC companies selected for these two companies received much higher innovators in Europe. Many European Fund incorporated in June 2020. The types of funding in cut-offs closed rounds, on average €6.3 million start-ups can’t find high risk capital European Investment Bank acts as an in October 2019, January 2020 and compared with €2.9 million in case needed to get to the stage where advisor to the EIC Fund on behalf of March 2020. of grants-only. This might indicate private sector investors get involved. the European Commission. It manages that blended finance companies are The EIC blended finance scheme the ownership stakes of the European Both blended finance and grant- more mature in terms of business under the EIC Accelerator was Commission. The EIC Fund runs the only companies are young and development. introduced to fill this gap in 2019. due diligence process, structures small. Almost half of them are It is offering a patient capital in the the deals that are inclusive vis-à-vis micro companies with less than 10 Regarding country origin, blended form of equity or quasi-equity (up private capital. It also creates value employees and 62% are start-ups finance support has been awarded to to €15 million) blended with a grant through connections with specialised Profile of EIC companies as many countries as grant-only, with France, Israel, Spain, Sweden and component (up to €2.5 million). mentors, ecosystems and additional receiving equity support: This is the first time the European funding opportunities and supports Finland having more blended finance Size projects than grant-only. 17 Commission is making such direct investee companies in subsequent 45% are micro enterprises equity investments in companies, rounds of capital increase, and seeks (1-9 employees) with ownership stakes expected to be exits from such investments. (47% for grants-only) Grants only Blended finance 48% are small enterprises Large interest from the ecosystem (10-49 employees) 13 13 As of June 2019, companies can apply competed for funding. The share (47% for grants-only) 12 12 Age for both grants-only and blended of companies applying for blended 17 finance support. So far, the EIC has finance has been steadily growing, 45% are younger than 5 years (67% for grants-only) run 4 cut-offs with blended finance reaching 1059 eligible applications 9 Previous private investments 13 13 possibility that attracted more than (27%) in March 2020, which was a 8 12 12 42% had a previous private funding 10 000 applicants with a peak in record due mainly to extra COVID (47% for grants-only)of a total amount 7 7 7 7 9

March 2020 when 3883 applicants funding available. of 285M (119M for grants only). 6 6 6 68 6

7 7 7 7 €6,5 million average per company 5 5 5 6 6 6 6 6 (€2.9 million for grants-only) 5 5 5 EIC Blended finance in numbers: 4 4 4 4 4 4 4 4 3 3 2 2 2 2 2 2 2 2 2 2 2 1 1 1 1 1 2 1 1 Bulgaria Slovakia Estonia Latvia Iceland Turkey Austria Portugal Italy Norway Kingdom Finland Belgium Sweden Netherlands Ireland Denmark Spain Switzerland Germany Israel France 1 1 1 1 1 1 1 United 4 140 €278 m €6 m Bulgaria Slovakia Estonia Latvia Iceland Turkey Austria Portugal Italy Norway Kingdom Finland Belgium Sweden Netherlands Ireland Denmark Spain Switzerland Germany Israel France cut offs companies in grants, average ticket United receiving €583 m size in equity 24 25 Cumulative private equity acquired by portfolio 3.3. EIC Accelerator Portfolio companies after the EIC Accelerator funding performance The funding, mainly Early VC, was collected in 877 rounds with an The majority of follow up rounds The EIC Accelerator supports international networks of partners, are early VC rounds. Series B rounds innovators in the final development investors and possible clients. The average funding per round of €4.8 brought the highest amount of total stages of their solutions and in companies are set on the right path million. This proves that the EIC investments bringing them onto the market. It offers towards commercial success and funding can bridge the gap between seed funding and early VC funding funding at risky stages of product scaling up. 4500 development, when private investors and help companies get started on are reluctant to step in. The coaching The following analysis is based on the capital market. However, the 4055 offered helps companies streamline investments acquired up till May Series B rounds brought the highest 4000 and structure their business strategy 2020 by companies selected since amount of investments with a total to give them the best chances to 2014, first under the SME Instrument of €1 billion and on average €19 scale up. The business acceleration and then under EIC Pilot till March million per investment. services connect companies with 2020. 3500 Private Investments attracted

3000 billion of private equity billion of total private investments €5,3 follow up investment €4 out of which €1.8 billion 2238 attracted in the last 12 months 2500 € The amount of private investments the remaining amount from debt 1950 raised by the companies after funding, IPOs and acquisitions. The Millions 2000 receiving the EIC funding is an last year saw a huge increase in important indicator that can serve as follow-on funding as within the last a proxy for the innovation’s expected 12 months, the cumulative amount of 1500 growth and market validation private investment almost doubled! Millions € potential. Until May 2020, EIC 1052 Accelerator portfolio companies had The equity investments were attracted over €5.3 billion of private gathered by 18% of the portfolio’s 1000 follow-on funding (equity, debt, companies with funding above €0.5 M&A, IPOs). This is a conservative million. This ratio is similar to the one 436 estimation as only publicly known used by Venture Capital firms where 500 investment rounds were taken into 10-20% of successful investments consideration. Out of the €5.3 billion bring sufficient results to compensate 133 of follow-up funding, €4 billion (74%) the failure of lower performance of 1,5 came from equity investments and 80-90% others. 0 2014 2015 2016 2017 2018 2019 2020 Source: Dealroom 26 27 Types of follow-up private investment rounds 1200 Top 10 EIC companies attracting private Amount Number of rounds follow-up investment rounds Amount Number of€ rounds 1.002 € 19 € 19 1000 € 17 € 161.002 € 827 Company Total investment 800 amount € 678 € 13 € 13 € 827 Title 600

Title € 535 € 678 Infarm (DE) €218 m € 399 400

Millions € € 6 € 6 € 278 € 5 € 535 268 282 € 192 € 3 200 Relex Solutions (FI) € 1 € 2 € 108 € 399 €182 m € 1 € 1 118 € 76 € 64 77 € 19 € 24 € 5 22 € 2 23 28 16 1 1 18 €4 278 15 4 0 282 268 SEED € 192 DEBT ANGEL SEED DEBT LATE VC ANGEL EARLY VC SERIES A SERIES B SERIES C SERIES D € 108 SECONDARY LATE VC Rimac Automobili (HR) €110 m CONVERTIBLE EARLY VC €SERIES 64 A SERIES B SERIES C SERIES D 118 € 76 SECONDARY GROWTH EQUITY POST IPO EQUITY € 19 € 24 CONVERTIBLE 77 PRIVATE PLACEMENT 28 € 2 € 5 22 16 18 15 4 1 1GROWTH EQUITY POST IPO EQUITY 23 4 PRIVATE PLACEMENT

DEBT SEED ANGEL Unbabel (PT) €83 m LATE VC AverageEARLY amount VC per round type SERIES A SERIES B SERIES C SERIES D SECONDARY CONVERTIBLE GROWTH EQUITY POST IPO EQUITY € 19 € 19 PRIVATE PLACEMENT € 17 Ultraleap (UK) €76 m € 16

€ 13 € 13 AlphaSense (FI) €75 m

Millions € € 6 € 6 € 5 Monese (UK) €70 m € 3 € 1 € 2 € 1 € 1 MeMed €64 m Diagnostics (IL) SEED DEBT ANGEL LATE VC EARLY VC SERIES A SERIES B SERIES C SERIES D SECONDARY CONVERTIBLE GROWTH EQUITY POST IPO EQUITY Hailo (IL) €62 m PRIVATE PLACEMENT

TactoTek (FI) €62 m Source: Dealroom 28 29 18001800 1800 1800

InvestmentsInvestments 2014-20192014-2019 16001600 Investments 2014-2019 1800 1600 InvestmentsInvestments 2014-20192014-2019 1600 Total Rounds 1600 TotalInvestments RoundsTotal Rounds2019-2020 InvestmentsTotal Rounds 2014-2019 Follow-up investmentsTotal by Roundsindustry 140016001400 Investors in EIC portfolio companies Investments 2019-2020 1400 1400 Health, Energy and Enterprise Software are the sectors with the highest amount 1400 The majority of investments in Total Rounds of post EIC funding investments. This follows the general sector distribution of 1400 1.2421.242 12001200 the funded companies came from Investors in EIC portfolio companies 1.242 portfolio companies. The period between 2019 and 2020 marked a record in 1200 1200 are coming predominantly from € 1.242 1200 Western and Northern Europe terms of investments for the EIC Portfolio. Record investments were registered Europe 1200 by companies active in Food (an increase of €270 million - 392% compared 10001000 (69%). They were injected mainly in 1000 1000 993993 993with period 2014-2019), Home living (increased by 155%), semiconductors 1000 companies from these regions. 22% over time, but not as rapidly. 22% €993 (increased by 132%) and marketing (increased by 110%). 1000 of investments came from the US 800800 of rounds closed in Europe in 2019 800 and 4% from China. This is in line 1800 800 involved at least one corporate 800 with overall US and Asian investors’ 600 investor, compared to 9% in 2015 600600 600 involvement in Europe being at 21% Investments 2014-2019 1600 (SOET). Professional VC Investment 600 Investments 2019-2020 600 of all European rounds in 2019 Funds remain the largest group 400 €437437 Total Rounds 1400 400400 (SOET_State of European Tech). 437 400 investing in companies funded by the 269 437€378378€361361 400 €378348348 361 400 EIC Accelerator, accounting for 47% 54,7 € 378 348 Millions € €303303 1200 200 175 361 348 303 139 200200 Investors prefer in general to invest 269 303 200 of all investments. Angel funding, on 81 €188188 200 62 61 65 49 188 200 locally. According to the State of 175 €14314332€14414429 38 29 28 20 1000 the other hand, represents 8% and 143 144188€11511511 12 11 9 8 1 6 9 8 5 4 2 0 139 €9898 €1158686 European Tech Report, two-thirds 143 144 98 86 6363 crowdfunding went up from 1% in 267,8 € 81 62 61 65 98 115 €3434 €3030 €4343 €3232 €63 6300 49 32 29 38 29 86 34 €301313 43 €1616 €3222 €1818 €1616 €1717 €151515 €111 0 11 28 20 12 11 9 8 13800 16 9 8 18 16 1763 15 of investments in Europe in 2017 34 30 43 32 1 6 2 5 4 2 0 1 2017 to 3% in 2020. FoodFood 13 16 18 16 KidsKids17 15 725,2 € Media TravelTravel Music 2SportsSports LegalLegal Kids 1 -2 00 HealthHealth EnergyEnergy FintechFintech Food GamingGaming HostingHosting Legal Health RoboticsRobotics SecuritySecurityMedia TelecomTelecom FashionFashionTravel Music Sports were within the same country. Out 1.187,3 € Energy Food Fintech Mark eting EducationEducation Fashion KidsGaming Hosting MediaRobotics Security RealReal EstateEstateTelecom Music Legal EventEvent techtech HealthE.E. SoftwareSoftwareEnergy Fintech HomeHome livinglivingMark eting Education Travel 600 Sports E. Software Food Robotics Security HomeTelecom living Real Estate Fashion Gaming Kids Hosting Event tech Health TransportationTransportation Media Mark eting Education Travel Music Sports Legal of all investment rounds received Investment funds are the main type EnergySemiconductorsSemiconductorsTransportation Fintech Real EstateWellness BeautyFashion Gaming HostingEvent tech -2 00 104,8 € E. Software SemiconductorsRobotics Security Home living Telecom JobsJobs RecruitmentRecruitment Mark eting Education Wellness Beauty Jobs Recruitment Event tech E. SoftwareTransportation Home living Real Estate Semiconductors Wellness Beauty by companies post EIC funding, of investors of companies in the EIC Transportation Jobs Recruitment Kids Semiconductors Food Media Music400 Legal Health Energy Fintech WellnessTravel Beauty Jobs Recruitment Sports Robotics Security Telecom Fashion Gaming Hosting 47% were purely domestic and 53% portfolio 107,7 € Mark eting Education E. Software Real Estate Event tech 205,4 € Home living 332,2 € 127,5 € Transportation 277,3 € 113,4Semiconductors € 70,0 € 200 had at least 1 foreign investor. The 269 67,4 € 30,0 € Wellness Beauty Jobs Recruitment 175 270,3 € 98,7 € The most popular crowdfunding 155,6 € 175,5 € Follow-up43,0 …13,0 € 32,0 €investments2,0 € 16,0 € 15,0 € in EIC portfolio Business Acceleration Services that 139 €578 169,5 € 29 34,0 € 30,0 € 81 75,6 € 89,3 € 16,0 € 18,0 € 17,0 € 63,0 € 1,0 € 65 32 0 platforms are CrowdCube, Ourcrowd, 70,7 € 20 are available for EIC companies 62 49 38 45,0 € 56,0 € 12 11 9 8 9 8 5 4 2 -25,5 € 11 companies by1 country6 61 -15,4 € 29 28 help them get exposure in front of Capital Cell, SyndicateRoom and €457 Companies from the United Kingdom, France and Finland €452 -2 00 Seedrs. The most successful attracted the highest amounts of private investments after international investors and boost Kids Food Music Legal Health Energy Media Travel Sports their international expansion in crowdfunding campaign was carried FintechRobotics Security€383 TelecomEIC funding.Fashion Gaming Hosting Mark eting Education Event tech Home living Real Estate general. out by RT Recycling Technologies TransportationSemiconductors €334 Wellness Beauty Jobs Recruitment Enterprise Software (UK) and facilitated by CrowdCube. Amount (€m) There is an increase in investments The company collected €4.2 million €231 in their crowdfunding campaign for Millions € from corporate investors, from 13% in €166 Rounds €154 2016 to 34% in 2019 (including both recycling end-of-life plastic into 129 €152 €136 96 €147 €105 venture funds backed by corporates virgin plastic, wax, and oils. 77 55 56 67 €75 43 51 and corporates investing directly). 37 33 28 €43 €40 €39 15 18 €20 €19 32 €10 €10 €3 €2 €2 €1 This goes beyond the overall trend in 11 17 7 7 9 4 1 2 3 3 0 0 Europe, where investments coming

UK Italy from corporate investors increased France Israel Spain Po land Turkey Latvia Fin land Sweden Ireland Belgium No rw ayEstoniaIceland Austria Greece Germany DenmarkPo rtugal Lithuania BulgariaHungary SwitzerlandNetherlands Luxembourg Source: Dealroom 30 31 %

venture capital corporate 47% venture capital Top Investors into EIC Companies corporate venture fund 24% corporate (follow-up investments) angel 24% 10% corporate venture fund 47% family office 8% angel 24% Number of Amount 47%Investor investments invested crowdfunding 4% family office workspace Technology Crossover Ventures 1 €181.8 m 3% crowdfunding accelerator 10% 2% workspace Atomico 4 €155.1 m service provider 3% 8% 4% 2% accelerator Bpifrance 10% 10 €127.8 m angel fund 2% service provider 2%3% 2% 0,25% Cherry Ventures8% 3 €117.6 m advisor 0% 4% 0,21% angel fund 0% 2% 0% Balderton Capital 2 €113.6 m Source: Dealroom 0,15% advisor TriplePoint Capital 2 €113.6 m Type of Investors supporting EIC Accelerator portfolio Astanor Ventures 1 €90.9 m (% of total investments) The largest investment in an EIC Accelerator company was done by Technology Notion Capital 4 €89.6 m Crossover Ventures which invested €176 million into Relex Solutions– so far the biggest round in the portfolio. Atomico from UK and BpiFrance comes second and third with investments totalling €155 million and €128 million respectively. Sweden Sector Healthcare EIC funding €2.9 m Idogen AB moves ahead with IPO The Swedish biotech company Idogen AB is developing tolerogenic cell therapies to prevent the patient’s immune system from attacking biological Finland Sector Enterprise software EIC funding €1.4 m agents, transplanted organs or the body’s own cells or tissues. These new types of cell therapies have the potential to improve the treatment of RELEX Solutions: 3rd largest investment in haemophilia A and reduce the risk of transplanted kidneys being rejected. their sector in Europe last year Over the past year, Idogen AB has made significant advances in its unique In the EU, close to 90 million tonnes of food waste are generated annually cell therapy projects. costing up to 140 billion euros. EIC-funded company RELEX Solutions provides a retail planning and optimization system that increases the A new combination of substances to produce tolerogenic dendritic cells efficiency and reduces the spoilage of the food value chain including has been established, and a patent application has been submitted, with retailers, wholesalers, and food manufacturers. Through precise demand potential market exclusivity until 2040. In addition, a partnership has been forecasting, automated replenishment, inventory optimization, space initiated with Radboud University Medical Center to establish a scalable planning and markdown optimization, the Helsinki-based company helps manufacturing process prior to the start of clinical trials. This year, the EIC- businesses plan better, sell more and waste less. The RELEX Living Retail funded company was listed on Nasdaq First North Growth Market in order to expand their business, raise investor visibility and get prepared for a Platform uses machine learning and AI algorithms to improve the speed Anders Karlsson and accuracy of retail decisions. RELEX works closely with top names like Main Market listing. Idogen has previously been listed on the Spotlight Stock Coop Denmark, Franprix, MediaMarkt, Morrisons, PartyCity, Rossmann and CEO Market. WHSmith. In 2019, the company secured a 176 million € funding round from TCV, which purchased a minority stake in the company. This was the Johanna Småros 3rd largest investment in Enterprise Software of the year in Europe and the “The funding from the EIC has been a crucial support for Idogen. We are developing our innovative tolerogenic cell Co-founder and Group CMO number 31 globally, placing RELEX as the most well-funded tech start-up therapy, from concept to clinical trials to help severe hemophilia A patients with an identified high medical need” in Finland. “Our EIC projects enabled us to further develop our machine learning and AI capabilities. These capabilities benefit both the retail value chain bu driving increased efficiency and competitiveness, as well as the planet through reduced waste.”

32 33 EXITS: IPOs and acquisitions Valuations Valuing an innovative company or start-up is intrinsically different from The combined valuation of EIC- backed companies grew by 40% EXITS valuing an established company. within one year 95% on European Because of the high level of risk and 17 IPOS stock exchanges often little or no revenue, traditional between 15%-25% of equity) to 11 new in 2019 & 2020 quantitative valuation methods are present valuations. The combined 43 acquisitions 65% from Europe of little use. Start-up valuations valuation of EIC-backed companies, 30% from the United States are often based on qualitative for which data are available, is 5% from Japan attributes. However, whenever a between €20.1 and €28.3 billion. This company received already an equity is 40% growth compared with last Seventeen EIC backed companies Forty-three companies have been investment, an estimation of its year’s cumulated valuation between have done their Initial Public acquired. Large European companies valuation becomes possible. With €14.3 and €20 billion. Offerings (IPOs). All, except one, float were responsible for 65% of these help from the Dealroom database, we The Swedish company Arcam is the on European stock exchanges. So far, acquisitions, 30% of acquirers came use the last recorded public valuation top valued company in the portfolio the highest amount gained at listing from the United States and two (for publicly traded companies) or with a €636 million valuation. It belongs to Bioarctic (€77 million), a SMEs were acquired by Japanese a x4-x6 multiplication of the last was a listed company that was Swedish biopharma company. The companies. second highest is Bonesupport (€50 VC round amount (assuming that subsequently unlisted as acquired by 14 14 a VC investment usually represent General Electrics. million), also a Swedish company, 2017 was a record year for EIC that produces injectable biomaterial supported companies both in terms Top 10 valuations in the EIC portfolio for bone fracture treatment. Other of IPOs and acquisitions while the companies did their IPO to gather overall European SME scene saw the Company Value smaller amounts, on average €10 same10 10peak a year later (SOET). million. Arcam (SE) €636 m 14 EIC exits per year 8 8 Bioarctic (SE) €512 m 7 7 Relex Solutions (FI) €409 m 10 Infarm (DE) €364 - €545 m 5 5 8 MeMed Diagnostics (IL) €255 - €382 m 7 4 4 Agendia (NL) €223 - €318 m 3 3 3 3 5 2 2 2 2 4 Unbabel (PT) €218 - €327 m 3 3 1 1 2 2 1 1 Hailo (IL) €218 - €327 m 1 1 Arralis (IE) €200 - €300 m 20152015 201620152016 2016201720172017 201820182018 201920192019 2020 20202020 AlphaSense (FI) €200 - €300 m NoNumber acqusitionsNo of acqusitions acquisitionsNo acqusitions No NoIPOsNo NumberIPOs IPOs of IPOs 34 Source: Dealroom 35 Growth of EIC portfolio companies 4. EIC PATHFINDER AND ITS The actual growth of funded companies can be measured by the Around 73% of companies for which data are available have seen PORTFOLIO OF TECHNOLOGIES periodic adjustment in their operating increase in their operating revenue. EIC Pathfinder goes beyond what action under Horizon 2020: revenue and the number of staff. This The average increase per company is already known. It supports high information for companies receiving was of €1.63 million over the period risk, high gain, long term and • FET Open: a bottom-up grants over €0.5 million comes of 2.1 years interdisciplinary scientific research scheme to explore innovative from the Orbis database, which enabling the emergence of visionary technologies, which may become compiles different sources of official available for only 61%-79% of innovative ideas that may transform the game-changers of the future. information, including national companies. This is preliminary into future technological innovations. registries. Data that allows for a information, but it gives an idea of The main goal is to make the most • FET Proactive: seeking to comparison between the application the portfolio’s growth. promising and creative science- establish a critical mass of and at least one year after it, is inspired technologies a reality and European researchers in a Operating revenues help Europe compete on a global number of promising exploratory The vast majority of companies have companies (61%) with grants over scale. research topics. increased their turnover on average €0.5 million (excl. 2018, 2019 calls). by €1.63 million which corresponds Out of these 563 companies, 413 The Pathfinder builds on the Future Both schemes offer grants between to a 23.5% increase on the total or 73% have seen their operating and Emerging Technologies (FET) €3 - €4 million (in specific cases up to turnover of the Accelerator portfolio revenue increase.This generated scheme running under Horizon 2020 €10 million) to promote collaborative over the period of 2.1 years. Data a total of €4.8 billion in revenues since 2014 and previous research and interdisciplinary research and on the change in operating revenue in 2019 or latest post-grant year. framework programmes since the innovation by consortia of at least 3 between the application and the On the other hand, 145 companies 90s. The Pathfinder programme entities from 3 different EU member latest available post-EIC funding (26%) have seen their operating includes two complementary lines of states and associated countries. year is currently available for 563 revenue decrease. Why fund future and emerging technologies? Employees In terms of change in the employee companies that registered increase, count between the application and was of 108% or 24 employees over the latest available post-EIC funding the period of 2.2 years on average. year, data are available for 735 (79%) companies, with grants above €0.5 Around 66% of companies for million (excl. 2018, 2019 calls). Out which data are available have seen of these 735 companies, 487 (66%) increase in their employee count. Europe’s biggest This is what makes It turns science into a have increased their employee count The average increase per company innovation potential ‘deep-tech’ so hard to competitive advantage is in the blending of replicate, and therefore for creating new markets since they applied for grant, while was of 24 employees or 108% over the period of 2.2 years knowledge, data and so strategic for Europe’s and for disruptive 126 (17%) have reduced the number skills across disciplines future. innovation. of employees. The average change for and sectors.

36 37 How does Pathfinder work? 4.1. How the projects are selected Proposals are assessed based on applicants to get a notification about three evaluation criteria: excellence, the results of the application. Focus on impact, and quality and efficiency of inter-disciplinarity the implementation. The evaluators Due to the nature of the EIC Pathfinder and visionary nature need to be convinced that the programme, evaluators’ profiles of technologies proposed science-to-technology cover all scientific domains including breakthrough has the potential physics, engineering, nanosciences, Supports high-risk and Open to all fields, but high-impact research also targeted funding to make Europe a leader in that health research and life sciences, on future and emerging for for particular domain, to change the dynamics of environment, ICT research and many technologies challenges the market and to address societal more. Furthermore, many of the challenges. In addition, the proposal experts have more than one scientific must address a radical vision area of expertise. It is also worth challenging current paradigms. mentioning that many of them have Finally, its interdisciplinarity needs to mixed profiles, being both scientists open new areas of research and the and innovators. team needs to have all the expertise necessary to successfully implement The pilot Pathfinder scheme benefits Access to EIC Grants of up to the idea. from a high demand. In 2019, 952 €3-4 million coaching, mentoring proposals were evaluated and 151 and networking to for trans-national crystallise the potential collaborative projects The proposal is assessed by received the EIC funding, with a of research results independent experts first individually success rate of 16%. In 2020, the EIC and later through a panel. At the end pilot Pathfinder open call that closed of the process the experts propose a on 3rd June 2020 has registered a Possible follow-up selection of proposals to be funded. record number of 902 proposals that funding through It takes overall 5 months (from are currently being examined. EIC transition submission to final ranked list) for the activities and EIC Accelerator

38 39 several scientific fields, however 4.2. The EIC Pathfinder portfolio as they should also create new 431 funded projects technologies, most projects have % of technologies a proof of principle in specific 2774 participants Two thirds of EIC Pathfinder projects The EIC Pathfinder brings together have at least one participating SME application. Health is the largest billion of EIC support two pre-existing schemes, FET set to carry the innovation to the application area (37% of projects), €1.2 Open and FET Proactive, With their market. followed by ICT (30%), Manufacturing 49 countries cutting-edge, high-riskAcademia and high- & infrastructure (16%), Energy & Environment (15%) and food and reward research and innovation 1% €2.8 Million average agriculture (2%). projects that aim toResearch demonstrate Organisations a grant per project new technological paradigm and lead 2% 50% Europe’s deep-tech ecosystem. This 6% average participants SMEs 6.4 section provides basic characteristics Health is the largest application area per project regarding Pathfinder projects selected (37% of projects), followed by ICT Other Companies (30%) since 2014 under Horizon 2020 and 16% areas of research and innovations being pursued. Other public bodies 25%

The EIC PathfinderOther portfolio includes 431 funded projects with more than 2774 participants that received Type of UK, ES, AT, IT Sector Circular Economy EIC funding €3.2 m overall €1.2 billion since 2014. The EIC Pathfinder participants LIAR bringing nature back into buildings average project has 6.4 participants % % The vision of the EIC-funded project called LIAR - Living Architecture is and €2.8 million in funding. Half of AcademiaAcademia ResearchResearch Organisations Organisations bringing bioreactor and Microbial Fuel Cell technology into the fabric of SMEsSMEs OtherOther Companies Companies our households to transform waste liquids, like urine from toilets and grey the participants come from academia, water from washing machines, into useful resources in our houses and 25% are research organisations and OtherOther public public bodies bodies OtherOther businesses. LIAR consortium – coordinated by Rachel Armstrong, Professor of 22% private companies, including associated countries but also non- Experimental Architecture at Newcastle University in the UK – has developed the world’s first prototype system of microbe-based ‘living’ bricks 16% SMEs. 60%-70% of the European countries such as United capable of turning our waste back into something useful that can make projects involve one or more SMEs States, Canada, Australia, China or our buildings sustainable, circular and ‘alive’. The project has also produced as beneficiaries, much higher than Doulix — a web-based DNA design toolkit developed by Explora Biotech, Brazil (who generally50%50% participate with a company that enables end-to-end design, validation and synthesis of the overall Horizon 2020 (33%). The their own funding or on25% the basis custom synthetic biology constructs. LIAR’s researchers demonstrated their 25% work at several different exhibitions in Venice, London, Tallinn and Vienna participation of SMEs is important as of reciprocity agreements). 55% of and in festivals in Japan, Norway and Denmark. The Microbial Fuel Cell Rachel Armstrong they are potential commercialisation participants come from 5 countries: technology was also used in other projects, including Pee-Power® set up at 2%2%1%1% Project Coordinator the UK’s Glastonbury music festival in 2019. partners for innovations developed France, Germany,6%6%16% Italy,16% Spain and within the Pathfinder funding scheme. Netherlands. “Thanks to the EIC-funding our technology brings nature back into buildings. It’s a bit like the revitalising feeling we get after a walk in the forest. Our aim is to reduce and eventually eliminate our dependency on fossil-fuel-based EIC Pathfinder participants come EIC Pathfinder funds research systems in buildings, whilst also giving us value back and boosting sustainability” from 49 different countries, including in different areas. Projects are all EU member states, Horizon 2020 interdisciplinary, touching upon 40 41 % In addition to the main applications, the projects are also classified according to the main technologies: 51% are materials related technologies, 33% EIC Pathfinder main biotechnology and bioengineering, 10% data technologies and 6% engineering. application areas The matrix below presents the mix between Main Applications and Main Technologies. Health Applications

Energy & Food & Manufacturing & Health Digital Technologies Environment Agriculture Infrastructure Digital/ICT 37% Biotechnology & 95 3 3 5 4 16% Bioengineering Energy & Environment/Green Engineering 0 6 3 0 11 Food & Agriculture 2% 30% 15% Data 7 23 2 0 1

Manufacturing & Infrastructure Materials 23 69 41 2 38

% 4.3. EIC Pathfinder Results –

% EIC Pathfinder main from research to innovation technological areas Boosting innovation effectiveness is a complex and demanding objective. Pathfinder produces outstanding Science-driven and technology-based scientific output: 72% of its peer Materials deep-tech innovation encompasses reviewed publications are in high 33% profile journals Materials the entire journey from fundamental 33% research, development of emerging Biotechnology & Bioengineering technologies and services, de- and to find a way to promote early risking, scale up, market intelligence, technology ideas from the lab to Biotechnology & Bioengineering the market. 51% investment strategies and social engagement. The two critical aspects 51% 10% Data in this process are to have the Scientific publications are one of the earliest results of work in the 10% Data capacity to pick up early signals 6% from developments in science research world. While only few 6% that point at radically new and projects have finished their work so Engineering untried technological possibilities far the EIC Pathfinder portfolio (2014- Engineering 42 43 2019) has already produced a large Top projects in terms of no. of publications amount of publications, over 3700 76% of Pathfinder innovations concern new or emerging markets out of which 2662 in peer-reviewed Project Number of Short Description journals. Many of those publications innovators behind it and their needs Acronym Publications are of high quality and outstanding in the innovation and exploitation Creates quantum simulations of QUIC (IT) relevance. As demonstrated by the process. The Innovation Radar expert 238 insulators and conductors large share of publications, over 72%, provides recommendations about in high-profile journals including how to support the innovator and its QuProCS (FI) 126 Quantum Probes for Complex Systems Nature (188) and Science (39). This innovation. also includes feature articles like for RYSQ (DE) 102 Rydberg atoms for quantum simulations the project nuClock that appeared scientific 3702 Distributed Global Financial on the cover page of the Nature in publications DOLFINS (CH) 101 September 2019. In comparison, only Systems for Society 57% of all Horizon 2020 publications 2662 peer-reviewed A novel approach for understanding and are published in high-profile journals. publications socSMCs (DE) 92 modelling social behaviour and Overall, the Pathfinder scheme 72% in high profile journals % implementing it in robots produces 16 publications in high- 46 patents applications profile journals per €10 million of 14 awarded Types of markets targeted by Pathfinder Innovations funding while in Horizon 2020 this % figure amounts to 8,8 publications 590 Innovations for the same amount of funding. 451 addressing new and The EIC Pathfinder project produce emerging markets many patent: 46 applications have So far the Innovation radar identified 27% been filed and 14 have already been 590 innovations in 150 Pathfinder EmergingEmerging market market awarded. projects. 76% of detected innovations 27% Innovation Radar experts’ assessment are either market creating, where is another tool providing insights the market is not yet existing but 7% Market-creating the innovation has clear potential to Market-creating about the innovations being created 49% create a new market, or addressing within the Pathfinder projects. The 7% progress of all EIC Pathfinder projects emerging markets, where there is 17% Mature market is systematically monitored by an a growing demand and only a few 49% Mature market Innovation Radar expert. The expert offerings are available. The remaining fills in a questionnaire that aims at 23% of innovations relate either to 17% Market not existing identifying potential innovations, level mature markets that are already but not clear if innovation can create of maturity of the technology and supplied with many products of the Market not existing but not type proposed or to markets that are cleara new if innovation market can create a its exploitation, market competition new market and societal dimension. Besides the not yet existing and it is not yet clear innovations, it also identifies the that the innovation has potential to create a new market. 44 45 Top 5 EIC Pathfinder innovations (in terms of market creation capacity, market readiness and innovator capacity EIC TRANSITION TO INNOVATION based on Innovation Radar)

The EIC aims to become a one-stop-shop for innovations. Once a breakthrough technology with market Project Pathfinder Innovation potential enters the EIC, it can receive the necessary support in terms of funding, coaching, advice and network to succeed as a marketable product.

Participation of SMEs is very important as they are the agents commercialising innovation. 60%-70% Biomarkers for Parkinson’s disease using of EIC Pathfinder projects have already important activities provided by SMEs. The analysis shows that LUMINOUS (ES) around 40 SMEs involved in Pathfinder projects received also funding from the EIC Accelerator. Many Advanced machine learning techniques EIC Accelerator supported innovations come from EU-funded research projects in the European Research Council, such as:

NanoSmell Utilization of electronic-nose (IL) based analysis of odorants

Ultraleap | UK Continuous monitoring of underwater Ultraleap developed its touchless ultrasound haptic technology subCULTron environments with an internet of artificial first through ERC starting and proof-of-concept grant. The (HR) company was created in 2013 and in 2014 received a funding of mussels, fish and lilypads. €750 000. The €1.5 million funding from the EIC SME Instrument really allowed them to perform market validation studies for the technology and accelerated the company’s growth. After receiving the grant, Ultraleap raised €30 million in private investment and Laser technology for enabling fundamental grew from 1 to 80 employees. In the meantime, they participated nuClock (DE) spectroscopy and commercial applications in Pathfinder projects LEVITATE and H-Reality, receiving a total of €1 million, and used their haptic technology to work on new in holography breakthrough inventions such as haptic holograms.

Volumetric medical X -ray imaging at extre- VOXEL (PT) Steve Cliffe mely low dose President & CEO “It would have been impossible for us to have come so far so fast without the support we’ve got from the FET Open projects. It’s not just about the funding we’ve received – though of course this has been useful – but also the people and organisations we’ve been able to collaborate with.”

46 47 4.4. Impacts of FET: Blusense Diagnostic | DK Blusense Diagnostic is a MedTech spin-off formed six years ago What do we learn from from Anja Boisen’s research group at the Technical University of Denmark following her ERC Proof of Concept grant. BluSense can create diagnostic tests for virtually any blood biomarker with Pathfinder’s predecessor the highest accuracy results in a matter of minutes. Their project Diadem was supported by a feasibility study grant from the EIC Research needs time to reveal its predecessor, the FET Programme run SME instrument as well as an additional €1.9 million from the EIC Accelerator. Blusense Diagnostic also successfully leveraged impacts. Only few projects from the under the 7th Framework Programme funding from Go Beyond Investing VC firm. BluSense has grown EIC portfolio, selected as of 2014, are for Research and Innovation (FP7) from only four people to more than 50 employees since 2014. Most recently, the company developed and CE marked a COVID-19 actually completed, the results of the between 2007 and 2014. The “FET serology test and now they are focusing on developing medical research work only start to emerge traces” study published in 2018, diagnostics devices for neglected tropical diseases. now. However, we can learn about the looked at 224 FET Open and Proactive Anja Boisen indicative impacts of the programme projects completed between 2007 Head of center of Excellence ‘IDUN’ from an analysis of the Pathfinder’s and 2014. “It is fantastic that we in the EC has unique funding opportunities covering all aspects from explorative, curiosity driven research to business accelerator programs. As a researcher it is very rewarding to see some of our research being transformed into direct benefit for society” 2007-2014 FET projects are:

The EIC developed a series of tools to enable a smooth Highly interdisciplinary Radically new Excellent transition from lab to market: 36% of projects have an 83% deal with ideas not 29% receive impact on 20+ scientific present in the scientific scientific awards The EIC Transition to Innovation grants’ ambition and commitment is to bring the technology from EIC Pathfinder/FET projects to actual use, possibly through the creation of a start-up or spin-off. Projects must fields community before build on results from an ongoing or finished project, funded as a result of a FET-Open or FET Proactive call under Horizon 2020. The aim is to bring promising technologies to a level of development, validation and demonstration where they become a credible basis for entrepreneurship, business creation, investment At first, the study aimed to confirm of FET research. The bibliometric and, ultimately, economic and/or societal returns. The project has to be driven by a partner with the vision whether the FET scheme managed analysis shows that the overwhelming to exploit the technology. So far, 13 projects have been funded in Transition to innovation activities all responding to the call that closed on 13th November 2019. Each project has an average budget of €2 to select the interdisciplinary, and majority of FET projects (83%) deals million and lasts for two years. radically new research projects. A with research ideas not present in Innovation Launchpad grants, up to €100 000 are available to fund further innovation related work, i.e. citation analysis showed that FET the scientific community before and activities which were not scheduled to be funded by the original projects. The funding is used to verify and substantiate the innovation potential of ideas arising from Pathfinder or FET projects and to support results are cited in many different could therefore be termed “radically the next steps in bringing them closer to the market. The Innovation Launchpad funding scheme was scientific fields: 36% of the analysed new”. FET researchers believe the established in 2016. Since then, 74 projects have been awarded, including 32 SMEs from all over Europe. Innovation Launchpad projects regularly participate in workshops designed to stimulate networking, FET projects have an impact on programme offers the opportunity develop collective intelligence on innovation management and exchange best practises. more than 20 scientific fields. This to do research that goes beyond the In Horizon Europe further activities are foreseen to foster entrepreneurship and test commercialisation is a very high figure and reflects the mainstream. potential of Pathfinder technologies. Business Acceleration Services will play a role in connecting those technologies with potential commercial partners: corporates, investors, entrepreneurs, procurers (see interdisciplinary nature of FET. more under section 5.3. Business Acceleration Services). Novelty is another central feature

48 49 Economic impact of FET projects: 5. HOW TO WORK WITH 33% 25% 12% THE EIC PORTFOLIO of all projects had at report at least one patent of FET projects led to the 5.1. Become an EIC Evaluator least one publication application based on FET founding of a spin-off The EIC benefits from an extended coming from larger corporates, with the participation of results company and diverse pool of evaluators, both innovation hubs, and accelerators. an industrial partner in terms of profiles and gender. Co-publications with industry are of research that may trigger an Experts taking part in the evaluations Experts evaluate proposals a good proxy of the actual impacts innovation ecosystem. 25 % of are highly qualified, with in-depth independently or meet in Brussels of FET projects on the economy and the projects reported at least one knowledge in a wide variety of or virtually to interview applicants industry participation. 33% had at patent application, indicating the scientific areas and industry as and select the best innovators to be least one publication written with considerable applied impact of their well. Experts are selected on the financed under the EIC. The return the participation of an industrial scientific project. Finally 12 % of basis of their scientific expertise on the time investment is manyfold: partner such as IBM, Panasonic FET projects led to the founding of and productivity as well as gender evaluators discover brand new or Thales. This finding can be a spin-off company. A remarkably balance. innovative projects and follow the assessed as indicating a high level high figure when comparing this with latest trends in their preferred industry of cooperation with industry. Patent experiences in academia and other For the EIC Pathfinder, The majority sectors. They get to meet other applications are another indicator of public research funding programmes. of evaluators came from Academia experts and investors from all over economic relevance and especially (52%), and research organisations Europe pursuing similar goals. The (24%), and private firms (6%) In activity is financially compensated, the EIC Accelerator, around 26% of in line with the reimbursement and evaluators are venture capitalists, allowance conditions for experts of Healthcare Technology €4.9 m UK, CH, NL, AT, CZ EIC funding 29% innovation and industry the European Commission. The EIC CResPace: Neuron-on-chip to specialists, 24% entrepreneurs, 21% is always looking for new experts help cardiology patients business angels and other experts for both the Pathfinder and the CResPace is a project bringing innovation in biotechnology and medical engineering together. Launched in 2017, its aim is to provide much needed Accelerator programmes. therapies for cardiorespiratory and functional neurological diseases. There is a pressing need in modern medicine for projects like CResPace as many such diseases have no cure and patients carry a high symptom burden. The main outcome of the project will be an adaptive pacemaker, based on technology using small artificial neural networks known as central pattern generators. During the research, CResPace invented artificial neurons on Anna Maj | EIC jury member silicon chips that behave just like the real neurons. This first-of-its-kind Fin Tech Innovation Leader achievement has an enormous scope for medical devices to cure chronic diseases, such as heart failure, Alzheimer’s or other neurodegenerative “Every time we convene as a jury panel I am excited about discovering the best diseases. The implants created with this technology will help patients with of breed tech start-ups across Europe. The evaluation sessions (both onsite and diseases like heart failure or hypertension to extend their life and increase recently online) are always an inspirational and rewarding experience. As a jury Alain Nogaret their quality of life. members we are always committed to select outstanding teams of innovators Project Coordinator and entrepreneurs, the best of the best, who are ready and well equipped to scale globally, and in this way to contribute and support the European innovation “The EIC project has made it possible for European research teams engaged in disciplines as varied as Medicine, Physics, Physiology and Engineering to come together to achieve breakthroughs that meet the needs of patients ecosystem.” suffering from chronic diseases. The CresPace consortium has delivered outcomes that are more than the sum of its parts and that provide a template for future multidisciplinary driven innovation” 50 51 The EIC-funded innovations are in can save a significant amount of 5.2. Co-invest with the EIC Fund different stages of development money and resources on scouting, As detailed in Section 3.3., the The EIC also looks for investors to offering the business partners a communicating and evaluating start- Accelerator programme offers equity become mentors of the companies wide range of possibilities from joint ups and scale-ups. Furthermore, or quasi-equity support to innovative selected for blended finance and R&I, licensing, investment and so co-investing alongside the EIC fund companies. The EIC Fund manages provide them with strategic advice, on. Time is money so by having a can de-risk investment rounds into the equity investment part of the EIC networking opportunities and one-stop-shop source of innovative companies considered too risky fundraising support, among others. funding, and offers the opportunity for ideas across Europe, partners otherwise. private investors to co-finance highly innovative companies. The rigorous evaluation process by experts with a wide range of specialities ensures that the best companies are selected Kinga Stanisławska with the highest potential impact. EIC advisory board member “The EIC is not only about financial support. It’s also about the Business Acceleration Services, about having access to partners, investors, corporates, to 5.3. Join EIC Business the ecosystem. The EIC has been already doing this very successfully.” Acceleration Services The EIC support goes far beyond By working with the EIC, corporates, funding. In order to further leverage procurers, investors and other EIC investments it offers innovators partners can access 5700+ quality access to top, tailor-made Business stamped companies and more than Acceleration Services. The aim is to 430 innovation-driven research accelerate innovations and scale-up teams from all around Europe. The EIC-supported companies. Thanks EIC is the largest community of its to its wide reach and international kind in Europe, across all fields and 11 500 40 900 2000 EIC Community networking events pitching corporates, investors network, the EIC offers to its disruptive innovation areas from members per year innovators and procurers at beneficiaries: health, ICT, energy and environment, events mobility, agritech, fintech etc. All • Access to world-class coaches, EIC-funded research and innovation mentors, expertise and training go through a highly competitive • Access to global partners, leading selection process. corporates, investors, procurers, distributors and clients 2500+ 25% 89% significant business of SMEs having satisfaction • Access to innovation ecosystem contacts follow-up deals rate partners and peers

52 53 EIC BUSINESS ACCELERATION France Sector Nanotech EIC funding €1,1 m GENESINK: Gaining investments and clients SERVICES PARTNERS with the EIC business acceleration services GenesInk is a French company specialized in the conductive and semi- conductive inks market. Their nano-solutions aim to decrease raw material consumption and avoid pollution, especially for the electronics of the future: flexible printed electronics. In 2016, they received a €2 million grant from the EIC that opened the door to EIC Business Acceleration Services for them.

Corinne Versini, the CEO of GenesInk, won the EIC pitching contest at the EIC Investor Day: Empowering Woman Innovators in April 2019. Following the event they signed an initial funding agreement with Rise Tide 3, an association which invests in woman-led innovative companies.

In addition, after attending EIC Corporate Day, Genesink started a partnership with a new large costumer, L’Oreal. They signed a NDA and started working Corinne Versini on a joint development agreement to use GenesInk’s technology for CEO L’Oreal’s specific requirements. Versini affirms that this partnership was an eye opener as GenesInk was not focused on the cosmetic industry before.

“The EIC BAS events we attended got us funding, business, as well as access to an immense network. They put us in touch with decision makers we normally don’t meet. For small companies like us that is really valuable.”

54 55 Corporate Day with L’Oreal Discover the EIC Business Acceleration Services: The Buyers Partnership Programme The EIC Community is an exclusive, virtual meeting place in the form of an Public and private buyers are important potential clients online business platform, where EIC beneficiaries can connect and leverage for a majority of the EIC companies. Utility companies, potential business partnerships. Besides EIC innovators it includes corporates, hospitals or cities have a lot to gain from EIC-funded investors, procurers, ecosystem partners. The EIC Community offers: innovations in order to raise the living standards of citizens. Procurement procedures, especially public ones • A directory of over 5700 quality checked EIC companies and 440 tend to favour bigger companies as they are long and research teams complex to handle for start-ups. Through early market • A Forum to reach the whole EIC Community consultation and thematic procurement scouting days, • Tools for organising events with EIC beneficiaries the EIC tries to overcome these barriers, connecting the • A marketplace to announce innovation challenges EIC innovators with buyers looking to exploit deep tech innovations.

The Corporate Partnership Programme It bridges the gap between EIC-funded innovators and large corporates so they collaborate and develop new The Investors Partnership Programme business models and opportunities. It offers exclusive The EIC connects its beneficiaries with more than matching events (Corporates Days) and challenge-based 170 investors in Europe’s top finance hubs, through collaboration schemes. This initiative is an absolute win- pitching events organised by the EIC for companies win situation for everyone involved: the innovators obtain benefitting from EIC grants, blended finance or scale, resources, sale channels, connections and forge new a quality stamp of the Seal of Excellence. It also business opportunities, while the corporates can identify collaborates with renowned organisations or stock new emerging technologies and have access to great ideas exchanges like Nasdaq or Euronext, Innovate UK that can positively impact their business. As a first result, and BPI France. As a first result, up to 20% of up to 25% of participating companies close follow-up deals participating companies have a follow-up discussions after the EIC events. with investors after the pitching.

Cybelle Buyck VP Legal and Corporate Affairs Europe AB InBev Alex Zhigarev “Together with the EIC we are bringing all these start-ups together, which in turn Speedinvest brings bright ideas, which is beneficial not just for us, but for many companies in Europe. This way we can all continue to innovate, be stronger and be competitive “I am very content to see that the EIC is taking an active role in building these in the future.” entrepreneurial ecosystems by bringing together various players and providing them important services. EIC’s portfolio is growing in quantity and quality and gathers start-ups from all over Europe. This makes it easier for the start-ups to access capital and provides necessary cross-border transparency to all players.”

56 57 Business coaching If you want to work with It will help beneficiaries progress over the life cycle of their innovation, from idea to us please get in touch via proof of concept, to first pilot application and the contact form of the finally to upscaling and expansion. The EIC EIC Community. is always looking for experienced coaches to join the team. Potential coaches must demonstrate having executive industrial experience with launching products and business development and indicate sectorial and geographical experience. The service is CHECK THE remunerated. EIC BUSINESS ACCELERATION SERVICES CALENDAR Innovation Ecosystem Partners To further strengthen the Business Acceleration Services’ scope the EIC seeks for partnerships with ecosystem partners bringing in specific experience, specific expertise or access to specific networks in certain innovation areas. Such collaboration can include exchanges of information, the co-organisation of specific EIC events (such as pitching events or specific trainings, bootcamps, summer schools), data mining or mapping services of tech infrastructure, piloting plants and test-beds. Potential partnerships can take the form of a win-win collaboration or through a co-funding.

In addition, EIC beneficiaries can access international trade fairs through the Overseas Trade fairs Programme and other soft-landing services in top targeted markets, including Community talks, a GHG neutrality programme promoting the reduction of greenhouse gas emissions, specific services for early stage innovations and a women innovators programme.

58 Corporate Day With Galp 59 6. EIC DEEP TECH INNOVATIONS EIC Health “Centaurs” and their valuation

FOR RECOVERY Additive manufacturing for ARCAM (SE) €640 m 6.1. The health sector after implants COVID-19 The coronavirus pandemic has Europe significantly and are crucial to Treatments for Bioarctic (SE) €460 m affected every area of our lives avoid a relapse or a second wave. Parkinson disease including our work, our schools and our social life as well. In a crisis like Although medical innovation is the this unity and quick action are key highest priority during a global Helping physicians to make Memed €255 faster, to prevent and minimise damage pandemic, it is still important after - and speed up the recovery. The main COVID-19 is gone. Helping doctors diagnostics (IL) €380 m better-informed impact of the coronavirus pandemic is make more precise diagnoses and treatment decisions on the healthcare system. The death prescribe more effective treatments Molecular diagnostics and rate of the virus is strongly linked to improves recovery rate, and lower €220 personalised the availability of hospital care. Many recovery time. Prevention of major Agendia (NL) - treatment plans for EIC-funded projects have the potential diseases increases the life expectancy €320 m cancer patients or have been mobilised to curb the and the quality of life for the whole pandemic and help the fight against society as well as lowers the burden it. Novel medical technologies such on the health care system. €189 Producing synthetic DNA as innovative testing have benefitted DNA Script (FR) - through natural €270 m enzymes

Health tech in the EIC Portfolio:

1265 125 €1.3 bn €2 bn companies Pathfinder EIC Funding Follow-up projects investments

60 61 Tackling the virus The EIC has demonstrated its agility different nationalities who submitted and responsiveness during the over 2000 solutions. To help the best Norway Sector Healthcare EIC funding €2.5 m pandemic. Allocating an extra €150 solutions realise, 2235 partnerships EpiGuard: Infection-proof medical isolation million for COVID-related solutions were brokered during the EIC unit is safely transporting COVID-19 patients to the 2020 march cut-off of the Matchathon. CureVac, supported by EpiGuard’s EpiShuttle is an award-winning flexible patient transport unit designed for the safe transportation of highly infectious patients. Accelerator programme supported the European Commission with €80 Developed with the input of medics, patients, and clinical experts, the solution has been used with life-threatening diseases such as Ebola and, 36 projects tackling all areas of the million, is developing a RNA based more recently, COVID-19. The infection-proof transportation pod doesn’t crisis from treatment and testing vaccine for the coronavirus. All these require that healthcare professionals wear personal protective equipment (PPE) throughout the transport, but only when loading and offloading the to video sharing tools for remote solutions make Europe more resilient patient – and they can still provide care and treat the patient through the working and home schooling. The to and prepared for a potential ports provided. In the last months, this EIC-funded innovation has been used to transport numerous COVID-19 patients. The EpiShuttle is in service by EIC Hackathon brought over 20 000 second wave. Logan Air, The Royal Norwegian Air Force, the Royal Danish Air Force, the brilliant innovators together with 141 German Air Ambulance DRF, FAI, among others. Ellen Cathrine Anderse CEO EIC Pathfinder EIC Accelerator “With the EpiShuttle, healthcare professional’s safety is the top priority. The EpiShuttle keeps the patient absolutely Projects Companies isolated, providing safer transport, for patients and medical professionals. We see that patient transport has played a significant role in the pandemic response. With sufficient transport capacity, you are able to move patients to Projects applicable to Companies tackling areas with less pressure and more available intensive care capacity. The EIC pilot funding has been crucial for us in 13 COVID-19 70 COVID-19 both developing the EpiShuttle v2 and now help tackle the coronavirus outbreak.”

Medical AI Artificial intelligence is impacting of treatments. Smart management Vaccines to prevent pandemic and seasonal all areas of life including medicine. systems help healthcare workers Osivax (FR) outbreaks of respiratory viral infections Machine learning algorithms can be plan their work to minimise waiting trained to perform time- and labour- time and improve patient experience. intense activities, such as segmenting The medical AI market size is growing and classifying cells, and run complex extremely fast and is forecasted to ‘’One size fits all’’ unique drug to simulations to predict the outcome reach nearly $100 billion by 2027. NoViruses- eradicate multiple viral species 2brain (PT) simultaneously from the central nervous system of co-infected individuals EIC Pathfinder EIC Accelerator Projects Companies 2 Medical AI projects AI driven health 4 Computer models 95 companies in medicine

62 63 Biomolecule discovery in food using artifi- 6.2. Digital technologies Nuritas (IE) cial intelligence and DNA analysis for the recovery AI enhancement of surgical technology for The COVID-19 crisis accentuated the with a historic deployment of remote BESAFE (ES) the reduction of human behaviour-related central role of digital technologies work, a monumental increase in the surgical accidents in our economy and daily lives, and digital access to services and a shift highlighted the urgent need to speed to “lights out” factories and supply up Europe’s digital transformation. chains. This transition will continue Many companies and individuals in during the recovery from the Personalised Medicine Europe made a major “digital leap” COVID-19 induced economic crisis. Developments in genetics and provide information of the general EIC Digital “Centaurs” and their valuation the Human Genome project have state of health. This information will provided an incredible amount help patients mitigate risk, prevent of information. It opens up the diseases and get precise treatment. Relex Supply chain management €410 m and predictive analytics possibility of predicting the outcome Due to the prediction and prevention solutions (FI) of a treatment on an individual with capabilities, personalised medicine software a level of certainty higher than ever has the potential not only to improve before. Genetic data can highlight patient care but also to reduce Specialised deep learning mutations that put an individual healthcare use and costs. €220 - processors to deliver data Hailo (IL) more at risk of certain diseases and €330 m centre performance to edge devices

EIC Pathfinder EIC Accelerator Online, human Projects Companies €220 - Unbabel (PT) €330 m corrected, machine Personalised medicine Personalised medicine translation service 2 projects 102 companies Semantic financial search €180 - AlphaSense (FI) €270 m engine for investment professionals Enabling drug developers to manufacture Avectas (IE) potent engineered cell therapies at therapeutic volumes Automated driving AImotive (HU) €180 m Electrochemically-enabled technology Electromed (LU) high-throughput peptidomics for next-generation precision medicine

64 65 Digital tech in the EIC Portfolio: Combining Machine Learning algorithms and IoT to deliver Konux (DE) software-as-a-service solutions for operation, monitoring, and maintenance process automation 1954 101 €1.3 bn €2.2 bn companies Pathfinder EIC Funding Follow-up projects investments Incorporating dream-like processes Dream (FR) in robots to consolidate their experience and improve their future ability to learn and adapt Autonomous devices and Internet of things Autonomous devices are physical eye. Independently, autonomous robots that are aware of their physical devices can already provide good Quantum technologies surroundings. They learn from input value but when integrated within the The year 2020 is expected to initiate classical computer. As the amount of and experience and are able to do Internet of Things, they can function the quantum era with Google data increases, quantum computing tasks mostly on their own. Some can be exponentially better. The IoT can announcing its 53-qubit quantum can bring solutions that target the as big as factory robots that produce combine the physical and the virtual computer in 2019. Quantum biggest industrial challenges, such cars, and some can be small like bees worlds into a new smart environment, computing can speed up the as health care and energy. In 2020, that are used to pollinate flowers. which senses, analyses and adapts, number of algorithms performing the ability to handle big data will be Some, like cancer fighting nanobots, and makes our lives easier, safer and computations in a couple of seconds required for cancer treatment, nuclear are not even visible to the human more efficient. whereas it would take centuries with a energy control, and DNA analysis.

EIC Pathfinder EIC Accelerator EIC Pathfinder EIC Accelerator Projects Companies Projects Companies 14 Software to create 371 IOT 15 Quantum computers Quantum technology complex machine companies response Autonomous & sensor 7 Quantum 25 Human-like behaviour, 40 tech Quantum cryptography 10 dreaming or sense of 4 time 281 Robotics Network of autonomous 4 devices, bio-hybrid devices, new Hafnium Labs Software that provides reliable autonomous motion physical property data for molecules (DK) and mixtures

Delft Massively scalable quantum Circuits (NL) hardware solution

66 67 Space innovations Space technologies and specifically of the crisis, to mitigate its potential Bulgaria Sector Aerospace EIC funding €1.2 m space data proved to be very useful impacts and anticipate new models during the Covid-19 pandemic. They for the recovery period. The New EnduroSat: Access to space redefined EnduroSat is designing, building and operating high-end NanoSats for a provided location-based information Space sector refers to aerospace range of space missions. Thanks to the successful market launch of its novel space systems developed during the Phase II SME Instrument project, to ease social distancing and filled companies and ventures working the Bulgarian start-up established itself as an innovative satellite player. up the gap in weather forecasting independently of governments and The company is vertically integrated with in-house capability, bringing down the cost of a NanoSat from hundreds of thousands of euros to less caused by grounded planes. Up-to- driven by commercial ends. It can than 50 000 EUR for a basic configuration. Through EnduroSat’s unique date space data helps the scientific help develop faster, better and Online Satellite Configurator, customers can build their ideal NanoSat in just a few minutes. This simplifies the mission planning and opens up new community and public authorities to cheaper access to space technologies opportunities in space for European entrepreneurs, small and medium-sized better understand the consequences and space data. businesses, educational and research institutions. The EIC-funded company raised a €1 million investment from Freigeist Capital and received €350 000 from the Bulgarian fund Neo Ventures. The founder, Raycho Raychev was also named one of Europe’s top innovators under the age of 35 by MIT Technology Review. EIC Pathfinder EIC Accelerator Raycho Raychev http://www.endurosat.com/ Companies Founder & CEO Projects “Thanks to the European Innovation Council and networking opportunities provided by the EU Commission, 2 space tech 52 Space tech EnduroSat succeeded in scaling up their business and accessing new markets” 1 Earth observation 29 Satellite tech 2 satellite safety 6 Space travel 6.3. Innovations supporting the

Engineering the Green Deal Nanoavionics (LV) Future of Commercial Space The EU’s climate goals are very had an impact on the environment. ambitious. The 2030 climate and Reduced transport and travelling energy framework aims to reduce and a decrease in construction and greenhouse gas emissions by 40%, production activities have led to a Changing orbit in space using increase the green energy share significant drop in carbon emissions E.T.PACK (ES) the Earth’s magnetic field to 32% and increase the energy and air pollution, especially in big efficiency by 32.5% by 2030. The cities. This shows that decarbonising European Green Deal targets aim to these industries is crucial for make Europe climate neutral by 2050. achieving our climate goals. EIC- The European Commission tackles funded innovative new technologies the climate challenges at multiple offer ways of replacing combustion levels: by increasing the share of engines with electric batteries, fossil renewable energy, supporting plastic fuels with renewable energy and recycling, transitioning to a circular lowering the carbon footprint of economy and increasing the energy many industries, such as construction efficiency of buildings and transport. and agriculture. The coronavirus pandemic has also 68 69 Green Energy Green tech in the EIC Portfolio: Energy supply is the single largest support them for continuous power source of carbon emissions. In 2017, supply. New technologies developed it corresponded to the emission of 1.2 by EIC-funded projects can increase billion tonne CO2 equivalent in Europe. the efficiency of solar panels and The major challenges of transitioning hydro plants as well as to harness to fully renewable energy sources are energy from other renewable sources 1600 50 €1 bn €1,15 bn companies Pathfinder EIC Funding Follow-up two-fold: 1. Currently the efficiency of such as ocean waves. Renewable projects investments most renewable power plants is low fuel from artificial photosynthesis or 2. Most renewable energy sources are hydrogen can serve as a substitute not available at all times, therefore for fossil fuel. EIC Green “Centaurs” and their valuation fossil or nuclear plants need to

Urban farming services company that EIC Pathfinder EIC Accelerator €520 – develops farming tech for grocery Infarm (DE) Projects Companies 760 m stores, restaurants, and local distribution centres 13 Energy storage and 288 Clean energy transfer 162 Energy efficiency 8 Solar energy 67 Energy storage Hydrogenics Acquired Designing, manufacturing, building 7 Thermal energy 116 Waste solutions and installing industrial and (BE) for $290M commercial Hydrogen Systems

Sustainable way of Arkyne Electricity from plant’s producing protein using photosynthesis Innovafeed €160 - regionally available, Technologies (ES) (FR) €240 m low-value materials, intended for animal feed and aquaculture Diamond materials for the AMR-G Smart photocatalytic conversion of CO2 €145 - Water meter add-on that will provi- DIACAT (DE) Water Meters de you with maximum data of your to fine chemicals and fuels €220 m water spend using visible light (IL)

Unique solutions to Microphyt €115 - industrialize the production of (FR) €170 m biomass of species of microalgae of economic interest

70 71 Green Transport The global plastic production in 2015 down the plastic using for example Transport is the second largest sector by the EIC offer solutions. Electric was 322 billion tonnes and only 30% microorganisms that turn plastic in terms of CO2 emissions. Moreover, vehicles and hydrogen engines show is recycled. Innovative solutions help into materials useful to the chemical combustion engines produce other a green alternative to combustion find ways to reuse and repurpose industry. air pollutants and microparticles engines and efficient smart city more of our plastic waste and break that have been linked to respiratory management can reduce traffic and diseases. Here too, innovative increase the use of public transport companies and research funded and car-sharing services. EIC Pathfinder EIC Accelerator Projects Companies EIC Pathfinder EIC Accelerator 3 Clean water 116 Waste solutions Projects Companies 2 CO2 capture 107 Water 5 Renewable fuel 346 Transportation 3 Fighting pollution 62 Climate-related 12 Batteries 13 Hydrogen fuel cells 23 Fighting pollution 1 Smart parking 10 Batteries for electric vehicles 47 Smart city Produces thermoplastic pellets based on milk Lactips (FR) protein Electric propulsion system for the air H55 (CH) transportation of Fundamental breakthrough in RADICAL (IE) tomorrow detection of atmospheric free radicals

NeuroMotive NeuroRobotics platform application to Future of solar energy supported in EIC Pathfinder lab and Accelerator The European Innovation Council promotes the Green Deal principles. (DE) traction control for automotive industry In energy sector, both the Accelerator and Pathfinder programmes reap success. ES, CH, NL, AT, DE, FR, IT EIC funding €7.9 m A-LEAF is a Pathfinder project, which got inspiration from the natural process of photosynthesis carried out by green plants Climate and Environment and oriented its research on developing an artificial leaf capable of producing fuel from sunlight, carbon dioxide and water. This ground-breaking technology could change the sustainability paradigm, by transforming carbon dioxide into valuable Reducing carbon emission and affects both nature and humanity. chemical fuels using a clean, fast and cost-effective process. pollution might not be enough to Less and less fresh water sources stop global warming from becoming are potable affecting developing Spain EIC funding €1.6 m RatedPower, a Spanish SME supported by EIC Accelerator developed a software allowing automation of utility-scale irreversible and prevent species from countries disproportionately. Novel photovoltaic power plant analysis, design and basic engineering process, while making it much faster and reliable. Since extinction. Capturing CO2 via artificial filtration technologies can remove then, RatedPower has gained multiple awards recognition regarding the market potential of such a tool. photosynthesis or inorganic process contamination and give access to “EIC funding has helped RatedPower to: improve and expand are one of the innovative solutions clean water. Organic pesticides are an its product (pvDesign), making possible to develop faster and better new features; grow its team´s size and quality; Andrea Barber developed by EIC-funded companies. alternative to chemicals that poison and promote its brand and image across different markets.” CEO RatedPower As pollution is growing, and it the ground water.

72 73 Methodology Note The data about private investment has been collected in collaboration with Dealroom.co, a Dutch company using big data technologies to scan the Inter- net and other sources in search for publicly available data about innovative companies. It monitors the progress of private companies by tracking indicators of innovation and growth, such as investments (both venture funding and to a lesser extent government grants), exits (IPO, merger & acquisition), accelerator support etc. The reliability of the information has been confirmed through verifications. It covers 85% of all transactions, given that some investment rounds are not disclosed. Therefore, the analysis in this report provides an estimated overview of the situation, and the actual numbers are likely to be higher overall.

The information regarding financial performance of companies comes from the obligatory self reporting of companies as well as from Orbis database5, which compiles different sources of official information, including national registries.

The data about Pathfinder patents and publications come from project report. Moreover the report uses information from Innovation Radar experts’ assessment. This is a tool providing insights about the innovations being created within the Pathfinder projects. The progress of all EIC Pathfinder projects is systematically monitored by an Innovation Radar expert. The expert fills in a questionnaire that aims at identifying potential innovations, level of maturity of the technology and its exploitation, market competition and societal dimension.

5https://orbis.bvdinfo.com/version-2018410/home.serv?product=OrbisNeo

74 EA-03-20-597-EN-N EA-04-19-534-EN-C

ISBN 978-92-9460-218-3 DOI 10.2826/770124