In this conversation within the 4Innovation Leadership Talk Series, Michiel Scheffer, President of the Board of the European Innovation Council (EIC), outlines the institution’s strategic priorities, its role within the European innovation ecosystem and reflects on its evolution from a newly launched instrument with early challenges to a central pillar in de-risking and scaling deep-tech ventures in Europe.

President Scheffer identifies two primary, sequential priorities.

The initial focus was on operational stabilisation, addressing “teething problems”, to ensure a seamless process for applicants, guided by the principle of staying “close to the innovators’ journey.” The subsequent and ongoing priority is accelerating impact, facilitated by larger funding allocations through instruments like the Strategic Technologies for Europe Platform (STEP) and the proposed Scale-Up Fund.

The EIC’s unique function, as described by Scheffer, is to act as a catalyst between foundational research and market scale-up. This involves operating as an ecosystem builder rather than solely a funding body. The EIC’s support structure is designed to guide innovators through key development stages. This includes the Pathfinder for early-stage research, the Transition instrument to bridge the gap to innovation, and the Accelerator for scaling companies, now complemented by larger funding tickets through the Strategic Technologies for Europe Platform (STEP). This financial backbone is reinforced by the EIC’s Business Acceleration Services, which provide tailored support in areas such as investor matchmaking and scaling strategy.

Regarding the challenges for deep-tech startups, Scheffer highlighted a succession of critical hurdles. Success is contingent upon a diverse, multi-skilled and resilient team capable of navigating technological scaling, strategic positioning within global value chains, and the continuous need to secure capital. He emphasized that the EIC specifically targets ventures characterized by a robust intellectual property base (e.g., granted patents), a focus on paradigm-shifting solutions to societal challenges, and a protracted “valley of death” of three to five years or more.

The EIC’s support mechanism is designed to catalyse further investment. A highly competitive grant acts as a validation signal to the market. Subsequent equity investment from the EIC Fund is conditional on a “crowding-in” effect, requiring beneficiaries to secure private capital investments. This model leverages a Trusted Investor Network and Business Acceleration Services to facilitate connections. On average, each €1 of EIC funding attracts over €3 of private co-investment. Scheffer stressed the subsidiarity of this model, noting the EIC is the “icing on the cake,” dependent on strong national and regional funding pipelines to create a viable deal flow.

The EIC’s portfolio reveals a strategic concentration in key deep-tech domains. Large concentrations are in health (particularly AI-driven diagnostics), hardware for the digital transition (semiconductors, photonics, quantum), and energy/climate technologies. A foundational criterion for all funded projects is adherence to the “do no significant harm” principle, with an aspirational target for one-third of EIC investments to directly support Green Deal objectives.

Finally, Scheffer articulated a forward-looking agenda. Maintaining Europe’s global competitiveness will require deeper capital markets for scale-ups, including the mobilization of pension funds and the strategic use of public procurement for innovation.

The EIC Board’s future focus will be on strengthening this entire pipeline, from Pathfinder and Transition instruments for early-stage research to the Accelerator for scaling companies, ensuring the EIC’s growing portfolio of currently 742 companies succeeds globally and contributes to a revolving system, where successful exits allow reinvestment in the next generation of breakthrough ventures.