The journey from research and innovation to market success is a critical phase for any project. For ventures that have already secured EU funds for their research and innovation kick-off, the go-to-market often is difficult, as it is difficult for them to come into contact with stakeholders who more often look at projects that are already born in the private sector. However investing in this specific phase is a unique opportunity for investors and for those who wheats to mitigate risks.

So investors, look around beyond your usual paths to find good projects to invest in and consider projects that have already demonstrated their potential, investing in this crucial stage of their life because:

1. your next investment should be in de-risked innovation

Projects that have received EU funding have already passed rigorous evaluation processes, demonstrating their potential for innovation and impact. This initial funding helps de-risk the project by validating its feasibility and market potential. investors can leverage this de-risked foundation to invest with greater confidence.

2. You have always desired a project that quickly accesses the market

EU-funded projects often have a strong research and development (R&D) base but may lack the resources to scale and commercialize their innovations. New investment can provide the necessary capital to accelerate market entry, ensuring that these innovations reach consumers faster and more effectively.

3. You can access a new network of expertise

Investors bring more than just funding; they offer valuable networks, mentorship, and strategic guidance. By investing in the go-to-market phase, inestors can help startups navigate the complexities of commercialization, from regulatory compliance to marketing strategies.

4. It’s your chance to focus on something with a potential for high returns

Investing in the go-to-market phase can yield high returns. Projects that have already demonstrated innovation and secured initial funding are often on the cusp of significant growth. Investors can capitalize on this growth potential, especially in sectors like technology, healthcare, and green energy, where EU-funded projects are prevalent.

5. You can be sure to be aligned with long-term EU goals

Investing in projects that have received EU funds aligns with broader European goals of fostering innovation, sustainability, and economic growth. Investors can play a pivotal role in supporting these objectives while also benefiting from the financial returns of successful ventures.

6. You can start a public-private partnership for innovation

The collaboration between public funding bodies and private investors can create a robust ecosystem for innovation. Investors can leverage the groundwork laid by EU funding to build strong public-private partnerships, enhancing the overall impact and success of the projects.

Moreover, all the funds allowing investors to fund startups that aim to receive EU funds for the innovation kick-off stage can also benefit startups and investors.

Combining VC investment with EU funds can provide startups with a more substantial financial base. This dual funding not only helps cover a broader range of expenses, from initial research and development to market entry and scaling, but, in general, providing additional financial support reduces the overall risk. Furthermore, the due diligence performed by EU funding bodies can serve as an additional layer of validation for the project’s viability. At the same time, the EU also invests to allow the survival of those projects that are highly innovative but present too high a market risk to be taken into consideration by private investors.

Another point to consider if you’re an investor and have just met a funder who intends to access European funds is that receiving EU funds can also significantly boost the startup’s /project credibility. This endorsement can make the startup more attractive to other investors, partners, and customers, creating a positive feedback loop that benefits all stakeholders. And I’m not talking about credibility and visibility that the startup will be able to create by itself by dedicating a part of its budget to marketing in a more or less sensible way in the next few years: here I’m talking about the mandatory high standard communication and dissemination strategy that the fund provider asks to implement and measures right away** and which has dedicated investments because the aim is to make the project as visible as possible throughout the European market.

But these are not the only reasons why it makes sense for a fund to highlight EU projects to its investors: EU funds are typically allocated to projects that align with broader societal goals, such as sustainability, innovation, and social impact. Investors who support these projects can align their portfolios with these values, potentially attracting like-minded partners and customers. It means investing not only with passion and instinct but with a future vision, it also means be part of the companies that shape the future.

Investors may also be interested in getting in touch with new talents and established teams, and they may also need skills to make available to other teams and projects already in their portfolio: EU-funded projects often come with access to a network of experts, mentors, and other resources. This support can complement the guidance and connections provided by funds, creating a more robust support system for the startup.

In general, however, investing in a company that receives both VC and EU funding is better: the combination of financial support, strategic guidance, and credibility can help these startups navigate early-stage challenges and scale more effectively. They are often better positioned for long-term growth and have more resources which means more time, knowledge, money, and credible partnerships to access = easy way to develop new products, services, and business models that can disrupt existing industries.

Don’t miss eucallslist.com if you want to know more about the open and forthcoming EU calls for your portfolio’s sector.

Categories: EUfundscompetitivenessbusinessstart-upsopen innovationHorizon 21- 27ResearchFundingInvestmentoutsurcingcommunityTechnologyDigital Europe