How to secure European Grant Funding for UK companies
For a lot of founders, startups and scale-ups, funding is going to be a key priority. Yet many UK startups are unaware of the types of funding that can be secured from across the channel. This article will help to explain about European R&D Grant Funding opportunities and how UK-based businesses can access them. Let’s jump right in.
What is an R&D grant?
Research and Development grants (R&D grants) can be used to fund staff wages, overheads, materials, capital, travel, market research and IP Advice costs. This funding is available for ‘game-changing’ and ‘innovative’ technology-led businesses to prototype, test and launch novel products, processes, and services. R&D grant funding is non-dilutive, does not need to be repaid and can be used to fund up to 100% of a project’s specific R&D costs. Here are tangible R&D grant funding options open to UK businesses.
EIC Accelerator
UK companies can apply for between €500k and €2.5m through the EIC Accelerator. The application process has three stages:
- Stage 1: Short application + 3-min video + 10-slide deck
- Stage 2: Full application + supporting documents
- Stage 3: Interview
The entire process from start to finish will take around six months.
There are several deadlines throughout the year to apply for the EIC Accelerator, however it is important to know that before you can be accepted onto the programme, you have to first pass ‘Step 1’ of the funding application, which typically takes one month to assess. Step 1 applications can be submitted at any time throughout the year, so take this into careful consideration when planning your full submission.
(It is also worth noting that there is an optional equity funding element to the EIC accelerator, which UK companies are not eligible for – thanks again Brexit).
Eurostars
UK companies can apply for up to €350k of R&D grant funding through the Eurostars grant programme. The only barrier to applying is that you must have at least one partner organisation (business, university, accelerator, etc.) that is based in a different European country.
Eurostars is a single stage application, and you should allow a few months to prepare and submit your application. For those familiar with Innovate UK R&D grant funding, Eurostars requires a similar level of effort. Because this application involves a partner, there is some coordination and project management required in the writing process.
The published success rate for Eurostars is around 30%. This is very high compared to the EIC Accelerator, for example, which has around a 5% success rate. Be aware, a Eurostars grant will cover 60% of total project costs, compared to 70% under the EIC Accelerator.
Collaborative EU grants
As a UK company, it is also possible to access European grant funding via a consortium. UK startups can join consortiums in applying for grants such as Horizon Europe, Digital Europe, and Connected Europe Framework.
Collaborative EU grants can involve between five and 30 partners, so be prepared to invest some time during the application process to align with partners on the project you are seeking funding for.
Aside from the funding, which could be between €250k and €1.5m per partner, you gain access to valuable partners across Europe who you will be funded to work with for 2-5 years.
You can ‘register your interest’ in joining a consortium to apply for a specific grant call on the EU Funding and Tenders Portal. Find a few calls that interest you and sign up. As consortiums start to form, you might get enquiries about becoming a partner in a call.
This approach takes a lot less time and effort compared to building your own consortium.
Niche EU grants
Smaller, thematic grant calls are launched regularly across Europe, many of which UK companies are eligible to apply for (where the UK is classified as an ‘Associated Country’).
Funding tends to be between €20k and €150k and covers a wide range of topics.
The challenge here is finding the grant calls – as they tend to be promoted to a predefined contact list (via newsletters and distribution lists).
One way to stay on top of these grants is to follow Venturenomix on LinkedIn, where we share EU Grant Opportunities when we discover them.
Open your startup/scale-up to grant funding
UK companies can still access many European R&D grant funds. If you are prepared to invest the time to understand and engage with the funders and consortium partners, the opportunity to secure grant funding and partners can be very rewarding.
