In a significant stride toward fostering deep tech innovation, the European Innovation Council (EIC) has established itself as a pivotal player in the European entrepreneurial ecosystem. The EIC Impact Report for the year 2023 underscores the remarkable journey of the EIC in becoming the investor of choice for European deep tech entrepreneurs, marking a new era of innovation and growth within the continent.
With a determined vision, the EIC Fund, which serves as the investment arm of the EIC, has concluded over 100 investments in deep tech companies, amounting to approximately €1.2 billion in 2023 alone. This strategic funding initiative is not just about direct financial investment; it’s about leveraging additional investment, where for each euro directly invested through the EIC Fund, over 3.5 euros of additional investment is mobilized. This approach has significantly amplified the impact of the EIC, culminating in the total value of the EIC-supported companies’ portfolio reaching nearly €70 billion, a staggering increase of €20 billion in the last two years.
The 2023 Impact Report delves into the EIC’s activities under Horizon Europe since 2021, spotlighting the funding of roughly 500 start-ups, 275 advanced research projects, and 140 projects aimed at commercializing research results. This coverage provides a comprehensive view of the EIC’s contribution to nurturing breakthrough technologies and deep tech start-ups as part of the European Union’s ambitious €10 billion programme. Furthermore, the report evaluates the longer-term impacts of the EIC portfolio, including the initiatives undertaken during the pilot phase (from 2018 to 2020) and projects funded under the predecessor SME Instrument and Future and Emerging Technology projects (since 2014).
Iliana Ivanova, Commissioner for Innovation, Research, Culture, Education, and Youth, praised the EIC’s transformative role, stating, “The European Innovation Council (EIC) has emerged as a game-changer in supporting deep tech innovation in Europe. This Impact Report shows how the EIC supports the growth of high potential startups while at the same time building a European community of deep tech investors. This is crucial to ensuring the future of our companies and strengthening EU leadership in critical technologies.”
Key findings from the report highlight the EIC’s profound influence on the European innovation landscape:
- The overall portfolio value of EIC-supported companies nearly reaching €70 billion, marking an increase of over €20 billion in just over a year.
- A notable impact on scaling up companies, with over 150 “centaurs” (valuations above €100 million), including 15 companies valued above €500 million and 8 surpassing the €1 billion mark (unicorns).
- EIC companies reporting an average of 35% employment growth and 68% revenue growth within the first two years following EIC support.
- The attraction of over €12 billion of follow-on investments, predominantly from venture capital firms, corporates, and national promotional banks.
- The generation of 1686 unique innovations from EIC research projects, showcasing the EIC’s commitment to driving forward groundbreaking technologies.
- The successful matching of EIC companies and projects with corporates, procurers, and potential investors, leading to over 125 signed deals.
The European Innovation Council Impact Report 2023 is more than just a testament to the EIC’s achievements; it’s a beacon of inspiration and a call to action for the European deep tech community. By supporting the growth of high-potential start-ups and facilitating a thriving ecosystem of deep tech investors, the EIC is not only ensuring the future success of European companies but is also solidifying the EU’s leadership in critical technological advancements.
