EU Funding Suitability Checklist for Startups
This checklist helps startup founders assess if pursuing EU funding aligns with their company's profile, resources, and strategy, based on the provided analysis. It highlights key considerations and potential challenges.
Project and Company Profile Assessment
Is your project type a potential fit?
- Is your core activity focused on Research & Development (R&D), particularly deep tech or high risk innovation?
- Does your project target specific Technology Readiness Levels (TRLs) typically addressed by EU programs (e.g., TRL 1-4 for early research, TRL 4-8 for development/validation)?
- Does your project strongly align with stated EU strategic priorities (e.g., Green Deal, digital transformation, health, strategic autonomy)?
- Is your innovation considered genuinely breakthrough, disruptive, or game changing, rather than an incremental improvement?
- Can your project benefit significantly from international collaboration (if required by the specific program)?
Is your project type likely a bad fit?
- Is your primary focus on commercializing or marketing an already developed product (TRL 9)?
- Does your business model rely heavily on rapid iteration, frequent pivots, and high market agility?
- Are you seeking funding for incremental improvements rather than significant innovation?
- Does your project fall clearly outside major EU strategic focus areas?
Risk Tolerance and Resource Capacity Assessment
Can you handle the uncertainty and effort?
- Are you prepared for potentially very low success rates (e.g., single digits for EIC Accelerator)?
- Can your startup dedicate significant time (potentially months) and resources to the complex application process, understanding it might fail?
- Do you have the internal bandwidth (personnel, expertise) to manage the application process without critically impacting core operations?
Operational and Administrative Readiness Assessment
Are you prepared for the bureaucratic burden?
- Can you navigate complex, multi stage application procedures with specific formats and detailed requirements?
- Are you equipped for rigorous project management according to EU protocols post award?
- Can you handle heavy and detailed reporting requirements (both technical and financial) throughout the project?
- Do you have robust systems for meticulous record keeping, especially for personnel costs and timesheets (a major audit risk)?
- Are you prepared for potential audits during or after the project?
- Can your startup operate effectively within fixed project durations (often 2-3 years) and potentially long evaluation/grant agreement timelines (months)?
- Are you prepared to manage formal amendments for any significant changes to the project plan?
Financial Considerations Assessment
Do the financial mechanics work for you?
- Can you secure the necessary co funding (often 30% to 60% of project costs) from other sources, as EU grants rarely cover 100%?
- Can your startup's cash flow manage phased grant disbursements (pre financing, interim payments based on incurred costs) rather than a large upfront sum?
- Are you prepared to implement and manage the complex EU rules for calculating and documenting personnel costs (e.g., daily rate method)?
- If using in kind contributions, can you accurately value and document them according to EU rules?
- Do you understand that rejected cost claims during audits can lead to financial penalties or clawbacks?
Collaboration Requirements (Consortia) Assessment
Can you manage mandatory partnerships (if applicable)?
- Does the specific program you are considering require forming or joining an international consortium (common for Horizon Europe collaborative projects, Eurostars)?
- Do you have the network, time, and resources to find suitable, reliable international partners?
- Are you prepared for the added administrative overhead of negotiating consortium agreements, coordinating partners, and managing joint reporting?
- Are you willing to potentially compromise on strategic direction, budget allocation, or IP rights within a consortium structure?
- Are you aware of the risks associated with underperforming partners, especially in lump sum projects where one partner's failure can block payments for others?
Strategic Alignment and Flexibility Assessment
Does EU funding align with your strategic needs?
- Can your startup tolerate the potential loss of agility and flexibility imposed by rigid grant agreements and pre defined work plans?
- Are you willing to align your project goals potentially with broader EU policy objectives, which might differ from immediate market focus?
- Does the potential credibility gain from securing an EU grant outweigh the operational constraints?
- Are you comfortable with the level of strategic autonomy you retain within the EU project framework (especially in consortia)?
Need for External Support (Consultants) Assessment
Do you need and can you afford consultants?
- Do you anticipate needing specialized consultants to navigate the complexity and improve success chances?
- Can your startup afford consultancy fees (retainers plus success fees), noting these costs cannot be paid from the grant itself?
- Are you aware that reliance on consultants can create a "pay to play" dynamic and requires careful vetting of consultant quality and expertise?
EU funding can offer significant non dilutive capital but comes with substantial operational burdens, low probabilities of success for some programs, strategic constraints, and financial complexities. Assess these factors critically against your startup's specific situation, resources, and strategic needs before committing. Proceed with extreme caution.
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundusjoint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the "gamepreneurship" methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities.
