15th May 2020
Start-ups hurt by crisis can apply for up to €500,000 in co-investment in exchange for options
Start-ups struggling with the economic shock posed by the COVID-19 pandemic can receive co-investment from EIT Health through a new instrument being funded by the EIT Crisis Response Initiative, which was launched 14 May 2020.
The EIT Health Start-up Rescue Instrument allows start-ups that are struggling due to the crisis to apply for up to €500,000 in co-investment from EIT Health, in return for options. The new instrument aims to help innovative ventures by increasing investor firepower and bridging the fundraising gap of start-ups in Series A, Series B and bridge-financing rounds. EIT Health will leverage the value of an investor’s commitment and co-invest up to €500,000 in grants for options. For example, if a private investor invests at least €250,000, EIT Health will match this with a €500,000 grant and give the start-up a total cash injection of €750,000. Find out more here.
The EIT Crisis Response Initiative
The EIT Health Start-up Rescue Instrument is financed through the €60 million EIT Crisis Response Initiative, part of the EU’s collective efforts to tackle the COVID-19 crisis. The EIT initiative was developed with the recognition that the COVID-19 pandemic and unfolding economic crisis have brought unprecedented changes and challenges to our societies. For its recovery, Europe needs strong collaboration to develop, identify and implement solutions. The EIT has a responsibility to answer these needs with innovation at the heart of solutions to resolve the crisis.
The new EIT Crisis Response Initiative mobilises additional funding, to be administered by the EIT’s Knowledge and Innovation Communities (KICs), which include EIT Health and seven other KICs. The initiative consists of two main tracks of activities:
- Venture Support Instrument: Start-ups, scale-ups and SMEs have been enormously impacted by the COVID-19 crisis, with investment drying up and significant cash flow issues emerging. Additional EIT support (financing, technical assistance and network) will help highly innovative ventures weather the crisis and accelerate their growth.
- Pandemic Response Projects: More than ever, innovations and new solutions are needed to tackle the current crisis and prevent its resurgence. The EIT ecosystem is agile and will mobilise innovators to address the COVID-19 crisis impact, both in terms of the immediate health concerns and the wider response needed.
Find out more about the EIT Crisis Response Initiative here.