News

Startup Rescue Instrument: Open For Applications

Through the new Startup Rescue Instrument, EIT Health aims to alleviate the economic shock posed by the COVID-19 pandemic. Startups can now apply to receive up to €500,000 in co-investment from EIT Health in return for options.

Introduction:

Part of the EIT Crisis Response Initiative, the EIT Health Startup Rescue Instrument aims to support highly 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 startup a total cash injection of €750,000.

Through this instrument, EIT Health will enable start-ups to attract further investor commitment and propel their venture’s acceleration. In addition to providing a boost to bridge financing rounds, EIT Health will offer selected startups a strong network of partners and introduce them to other opportunities in the EIT Health portfolio programmes.

The call document is available here.

Eligibility criteria:

Start-ups

Start-ups are eligible to apply if their venture meets the following requirements:

  • Investment rounds affected/postponed by the COVID-19 crisis
  • Seeking investment or bridge rounds ≥ €1M
  • Pre-money (of current round) or Post-money valuation (of previous round) ≥ €5M
  • Series A or B, bridge-financing rounds
  • Private investor willing & able to co-invest 50% of value of EIT Health grant
  • TRL ≥ 4 (Biotech); TRL ≥ 6 Medtech/Digital Health
  • Incorporated on or later than 1 January 2013
  • Active in Medtech, Biotech and Digital Health areas. Drug development projects are not eligible.
  • Be an SME According to EU definition
  • Be registered in one of the EU Member States or countries associated to Horizon 2020.

Investor Profile

Start-ups are eligible to apply if their investor meets the following requirements:

  • Private investors already present or new to capitalization table engaged in investment negotiations with start-ups whose fundraising rounds have been affected by the COVID-19 crisis.
  • Private investors including but not limited to: Business Angels, Super Angels, Corporate VCs, VCs, family offices and other equity investment partners who could support current or target portfolio start-ups
  • The investor will need to provide start-up with evidence of ability and willingness to co-invest at least 50% of EIT Health grant-for-equity requested under current terms to be submitted with application. The higher the private co-investment the more competitive the application.
  • Willingness to support start-ups growth by covering all other cost categories, in order to enable EIT Health funding to cover innovation/ project expenses

Application period: 14 May – 1 June 2020

Application form link: https://eithealth.optimytool.com/en/