COVID-19 Venture Financing Support.
The COVID-19 pandemic has significantly affected society, the economy and millions of people around the globe, and this impact is felt across our EIT Community. The EIT mission is to provide unique support to students, entrepreneurs and innovators across Europe, dedicated to developing innovative solutions to societal challenges.
EIT Climate-KIC is therefore supporting this extraordinary initiative responding to the pandemic crisis. This initiative supports two parallel streams of activity to: i) provide immediate and emergency support to selected climate positive start-ups and small businesses affected by this COVID-19; and ii) support selected projects needed to regenerate and reboot our economies in line with EIT Climate-KIC’s mission to achieve a system transformation towards a low-carbon economy. As part of the EIT’s Crisis Response Initiative this activity directly contributes to the European Union’s response to the COVID-19 pandemic.
This call specifically focuses on venture support (i) and the application deadline is 7 June 2020. To find more information about support for projects (ii), click here.
What do we offer?
EIT Climate-KIC will offer a financial support package to selected ventures for a period of maximum 6 months (e.g. the financial support can cover costs incurred between July 1, 2020 and December 31, 2020).
The financial request in the proposal shall be realistic, in order to guarantee absorption capacity of the venture in the indicated time frame. The ventures that receive support will be subject to performance and cost reporting, as well as reviews and audits.
The funding will be structured as a non-priced grant agreement for up to EUR 500 000 that can be converted into equity. Conversion events can then be a subsequent priced funding round, in case of a trade sale or at long-stop. Specific details will be worked out based on individual applications.
All communication and dissemination materials relating to this initiative shall include the EIT Climate-KIC and EU co-branding and logos (download the brand guidelines) and include the following statement: As part of the EIT’s Crisis Response Initiative, this activity directly contributes to the European Union’s response to the COVID-19 pandemic.
Who qualifies for support?
Startups, scale-ups and SMEs with the following characteristics:
- Your company has been incorporated within the last 10 years
- You fall under the European Commission’s definition of an SME*
- Your venture has a significantly positive impact on climate
- COVID-19 is affecting your business
- You can allocate funding of EUR 300 000 to EUR 500 000 EUR within 3-6 months
- Your company is based in a EU member state or a location where we operate our Accelerator programme
- Contribution to EIT Climate-KIC’s financial sustainability through a convertible equity mechanism, in consideration for the support
What can I use the financial support for?
Ventures can use the financial support within a defined time span and for certain costs relevant to the development of the business. The first date of eligibility is on 1 April 2020, and the last date of eligibility is on 31December 2020. Only a part of the grant can be spent in early 2021 and under certain circumstances. The costs for which the financial support can be used includes:
- Personnel costs relevant for the development of the business.
- Travel and subsistence costs to assist programme activities and events and fairs relevant for the development of the business.
- The applicable depreciation costs of fixed assets relevant for the development of the business (e.g. materials, equipment necessary for building a prototype).
- Consumables relevant for the development of the business.
- Services relevant for the development of the business (e.g. legal, IP, expert advice, financial advice, branding, etc.).
The financial support will be issued in lump sums, pre-financed and payable instalments until 31 December 2020.
How do we evaluate your application?
The following criteria will be used to evaluate your application:
- Climate impact potential
- People and team
- Market opportunity (TAM, SAM, SOM)
- Innovativeness of product/service
- Considerable contribution to prevent COVID-19 related challenges and substantiated justification of financial request
- Past performance within Accelerator programme and information from programme manager (if available)
What does the process look like?
- Feedback on your proposal (short-listing): 20 June 2020
- Due Diligence Phase: 22 June – 31 July 2020
- Investment Phase: 01 July – 30 September 2020