The last few months have rapidly increased the digitalization of the economy. The Internet of Things (IoT) is one of the sectors directly affected by the recent developments. There is a clear case for investment in deep-tech start-ups involved in IoT and July’s EIC ePitching with Investors subsequently delivered a session on IoT and Smart Cities. Bringing together seven highly innovative EIC-backed SMEs with seven investor firms, Crypto Quantique, a British deep-tech company working on innovative cybersecurity solutions, was this month’s EIC ePitching with Investors session.
The seven innovators each had five minutes to pitch their company to an investor jury consisting of representatives from Breega Capital, Indico Capital Partners, SAP, United Ventures, SET Ventures, Tengelmann Ventures, Primoglio SGR. Afterwards the jury members could ask a range of questions and ultimately vote for the ‘best pitch’. Since May 2020, the ePitching with Investors also features pre-arranged one-to-one meetings, where investors and SMEs can sit down and discuss possible follow-ups.
A new player in the market
The event opened with a presentation on the new EIC fund. This fund will provide equity from €0.5m to €15m to breakthrough innovation companies selected for EIC Accelerator blended finance support (grant and equity). This is the first time the European Commission will make such direct equity investments in companies, with ownership stakes expected to be in general from 10% to 25% in start-up companies. The European Investment Bank, as advisors of the EIC Fund on behalf of the European Commission, will manage the ownership stakes of the European Commission. For Stephan Morais, CEO from Indico Capital Partners, the presentation of the new EIC fund was an ‘added bonus’:
“My motivation to attend today was twofold. Of course, to find new interesting opportunities within the EIC-portfolio, but also to understand the new mechanics of the EIC; how will this new fund pan out and how will it affect the market?”
With a lack of capital in the private market, Stephan sees a clear role for the EIC in “complimenting the private sector and overcoming some parts of the funding journey for which there is no private capital available.” For Johannes Behringer from Tengelmann Ventures the EIC “has quickly become a leading player in the European start-up and venture capital ecosystem”. Having participated in several EIC ePitching sessions he knew what to expect: “Participating in the Business Acceleration Services is vital for anyone who wants to access pan-European top-notch deal flow and to connect with investors at the forefront of public and private collaboration.”
An ecosystem for all
UK-based CryptoQuantique was voted ‘Best Pitch’ of the day, a “welcome surprise” and “the icing on the cake” according to CEO Shahram Mossayebi. For him the event was a great occasion, firstly to pitch to European top-tier investors: “When the EIC creates an event like this, it indicates that other participants are also aligned with EIC's mentality of support for European deep tech companies. We need to build more deep tech companies in Europe to be able to compete globally but it usually takes more time for them to generate revenue hence they need more support. That is exactly what EIC is doing.”
In addition the ePitching sessions are a good occasion to meet fellow IoT start-ups: “IoT is a huge market, a complicated ecosystem. I want to be part of this Community, and this is a great way to understand what the other companies are doing in deep tech, understand the capacity of technology in Europe.” Having attended several BAS events before, Shahram had the opportunity to already start collaborating with other attending start-ups and see what they could mean for each other:
“Through previous events we met with fellow SMEs that have technology that are complementary to ours. We were able to combine solutions to solve problems in another market. That’s what the EIC is all about, creating an ecosystem for all”.
Looking for ways to connect to top-class investors and peers?
We host regular ‘EIC ePitching with Investors’ based on your company profiles in ScaleUp EU. Our next ePitching session will take place in September 2020. Keep an eye on our events page for more information on future events.
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DISCLAIMER: This information is provided in the interest of knowledge sharing and should not be interpreted as the official view of the European Commission, or any other organisation.