June 7, 2021
The list of investment deals made by the EIC (European Innovation Council) fund has been recently updated including six new operations with a quite different profile than previous ones. The new operations are listed below:
The next generation of hybrid location technology and solutions for IoT.
|EpiEndo||Iceland||Approach to inflammatory disorders that focuses on the epithelial barrier integrity.||Health (Pharma)|
|Antofenol||France||Natural, eco-designed and anti-microbial products from agricultural waste.||Cleantech (Waste)|
|Lixea||Estonia||Innovative biomass fractionation process using low-cost ionic liquids.||Cleantech (Biomass)|
|Demeta||France||Chemistry made greener, safer and more efficient.||Cleantech (Materials)|
The profile of these operations is quite different from the first batch as we can see 3 cleantech companies and significantly lower amounts. The average key amounts for all the operations closed until today by the EIC Fund are as follows:
|Average EIC Equity||5.497.601€|
|Average Total Equity||11.192.308€|
The EIC continues making a matching investment strategy in which other investors provide about 50% of the total round.
When looking at the company profile, it corresponds to a company with a significant turnover (taken from public data) and number of employees. This reality might contrast with the so called high-risk profile of the projects that the EIC is aiming for. The conclusion may be that, although the EIC is looking for high-risk high-impact projects, they also want to invest in solid companies with a proven track-record and product-market fit. There are no investments so far in pre-revenue companies. Risky projects but solid companies.
I believe this is very relevant information for all EIC applicants. Many pre-revenue micro-enterprises are applying to the EIC blended finance operations but their chance of success might be limited.
|Average number of employees||41,15|
In terms of geography, there are 5 french companies, 1 in Germany, 1 in Denmark, 1 in Belgium, 1 in Netherlands, 1 in Iceland, 1 in Finland, 1 in Estonia and 1 in Sweden. It would be interesting to know the reason behind the striking success of France-based companies.