Zaz Ventures with Younis Hijazi by lhoft

EIC ACCELERATOR The Leading EC Funding Instrument for Deep Tech Innovators

HORIZON EUROPE

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INTRO Why should you listen to us? €135M funding raised in 2020

Track Record 2014-2020 • €460M+ EC funding (226 projects) • €348M+ in the EIC Accelerator programme alone (84 ph.2 + 124 ph.1 projects) • 5-9 cases funded per EIC Accelerator cut-off (~14% of the funding available) • Average ticket €5.6M (calculated over the most recent 31 cases) • Max ticket €17.5M (3 cases: Hiber, IQM, Electrochea)

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EIC ACCELERATOR What is it? Who can apply? What are the funding terms? What is the evaluation process?

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EIC ACCELERATOR What is it?

• Supporting future deep tech innovation champions • Market creating disruptive innovation addressing major societal challenges in line with EC priorities • One of the most popular and selective European funding instruments (1-3% average success rate in 2020)

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EIC ACCELERATOR What is Deep Tech? Technology based on tangible engineering innovation or scientific advances and discoveries with • R&D risk • Product/market fit risk

“There must be science or engineering risk in getting the idea to actually work and, assuming it does, risk in proving market demand for that product. If there is only one of these risks, but not both, then we're not talking about a deep tech startup.” Nathan Benaich, Air Street Capital

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EIC ACCELERATOR What is Deep Tech? Technology based on tangible engineering innovation or scientific advances and discoveries • NOT incremental refinement • NOT delivery of standardised technologies • NOT business model innovation

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EIC ACCELERATOR Why is the EC investing in Deep Tech? The success of BioNTech demonstrates the importance of long-term R&D, but also the role of EC funding (source: Dealroom-Sifted)

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EIC ACCELERATOR What is Societal Impact? • Capacity to reach an exponential breakthrough in the coming 5-10 years • Capacity to impact people by addressing keys sustainable development goals (SDGs)

How will you positively impact one billion people in the next decade?

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EIC ACCELERATOR Green Deal May 2020 Call • 2071 applicants • €307M allocated to 64 companies • Average ticket €4.8M • Max ticket €17.5M (Electrochea)

Horizon Europe: Green Deal challenge June 2021 and October 2021

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EIC ACCELERATOR Funding Eligibility Normal Case (grant + equity) • Legal entity • Qualifying as SME (headcount, turnover, balance sheet) • Not owned at >25% by large corporate • Not owned at >50% by VC, university, local authority • Established in an EC Member State • Or Associated Country (e.g. Norway, Israel, Switzerland)

Exceptions • UK-based (grant only) • Small Mid-Cap < 500 employees (equity only) • Natural person from third country (incorporation required before full application stage) • Natural person from EC or Associated Country (incorporation required before funding agreement is signed) zazventures.com

EIC ACCELERATOR Funding Eligibility

Grant Component • Minimum TRL5/6 reached Equity Component • Typically above TRL8 • Can fund other TRLs as needed

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EIC ACCELERATOR Funding Terms

Grant Component • Up to €2.5M • Only for TRL6-8 activities • Funding 70% of project costs (typically 2 years) • Pre-Financing at M0= 55% of total grant

Equity Component • Up to €15M • For any TRL • 1 : 1 co-funding by external investors • Typical funding tranches • 50% as convertible debt at M12 • 50% as equity at M18-M24

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EIC ACCELERATOR Budget & Deadlines

2021 Budget • Open calls = €601M • Challenge-driven calls = €507M 2021 Deadline • Short application: • rolling basis

• Long application: • 9 June 2021 • 6 October 2021

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EIC ACCELERATOR New Application Process • 1 new extra step required to get a proposal funded (short stage, long stage, interview) • Only 2 submissions possible at each stage before 12-month cooling-off period • New application format (online form, video) 5-6 weeks 2-3 weeks

4 weeks

3-5 months within 12 months

Short application

  

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3-min video Pitch 5-page application form

Full application

   

Interview

Grant Negotiation

Work plan Market study

Due Dilligence up to 6 months

Business plan Financing plan

1st No Go

2nd No Go

No Go

EIC ACCELERATOR Novelties 5-Page Application • Breakthrough and market creating innovation • Timing • Scale-up potential • Broader impact • Team

“If you want me to speak for two minutes, it will take me three weeks of preparation. If you want me to speak for an hour, I am ready now.” - Winston Churchill

Video Pitch • Max length: 3 min • Format: free • Several options • Founder interview • Product video • A mix of both zazventures.com

EIC ACCELERATOR Strategic Challenges Strategic Digital and Health Technologies • Digital technologies e.g. advanced high performance computing, edge computing, quantum technologies, cybersecurity, artificial intelligence, block-chain, cloud infrastructure technologies, and technologies for the Internet of Things. • Healthcare technologies e.g. AI-driven tools for early diagnosis, point-of-care diagnostics, novel approaches in cell and gene therapy, development of novel biomarkers, bioprocessing 4.0, healthcare intelligence services, e-health solutions

Green Deal innovations for the Economic Recovery • Batteries and other energy storage systems for stationary and transport applications. • Green Hydrogen e.g. innovations to produce and store renewable hydrogen at different scales • Renovation e.g. making residential, commercial and public buildings more energy efficient • Low carbon industries e.g. solutions on electrification, circularity and industrial symbiosis industrial processes, carbon capture storage and utilisation technologies, digitisation of industrial processes. zazventures.com

Horizon Europe: EIC strategic challenges June 2021 and October 2021

EIC ACCELERATOR Historical Success Rates • Most competitive EC funding instrument of all • Oversubscription fueled by proposal resubmissions • High level of frustration among applicants

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EIC ACCELERATOR What are the key characteristics of a successful applicant? What is an excellent application? How can you beat the odds?

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EIC ACCELERATOR What is an excellent application?

Core • Technology • Market • Team The Wow effect • Storyline • Text quality • Visual impact

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EIC ACCELERATOR Typical score distribution Nb of Proposals Mediocre to Average

Funding Threshold

Actual Funding

• Scoring scale (out of 15) is replaced with a simple go / no go

Good

Excellent Effort + 100%

• Forces the expert to take a clear position and therefore to use the full scoring scale (from 0 to 1 with no intermediary result)

Effort + 100%

13 NO-GO

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Score (H2020) GO

Score (Horizon Europe)

EIC ACCELERATOR How can you beat the odds? It’s all about good preparation and hard work • Make sure that this is the correct instrument for you (consider alternatives such as EIC Pathfinder, EIC Transition, EUREKA Eurostars, LIFE, etc.) • Commit sufficient resources (the short application stage alone will consume at least 100 hours taking into account pitch deck, video and 5-page application)

“There are no secrets to success. It is the results of preparation, hard work, and learning from failure” - Colin Powell

• Enforce clear internal deadlines (the short application stage accepts submission on a rolling basis, which might lead to procrastination) • Work with advisors/consultants who have a track record of writing successful proposals

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GRANT WRITING SUPPORT

No Win No Pay Method

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We review and select the best funding candidates based on a thorough due diligence process.

We develop grant proposals over a period of 6-12 months at our own risk.

We only receive fees upon success of the short application stage or the long application stage

We are able to increase average success rates by a factor of 5x.

LONDON BRUSSELS

KRAKOW

PARIS ZURICH

Want to reach out? Email contact@zazventures.com ATHENS

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