Frequently Asked Questions
Here are some of the most frequently asked questions. If you have any questions that are not addressed here please get in touch and we will get back to you as soon as possible.
General
EIT Climate-KIC MED ClimAccelerator is suitable for non-incorporated projects, start-ups no older than five years since incorporation, start-ups with a minimum of two founders or two people working on a concept/project and focused on a new technology or service with high potential for both commercial viability and climate impact.
No, the project needs to have at least two people working on the idea/concept.
EIT Climate-KIC is an ideal programme for innovators with a great business idea, therefore you need nothing more than an innovative concept focused on sustainability and addressing climate change.
You can apply if you are resident or if your start-up is established in Portugal, Cyprus or Malta.
No, the programme is free of charge.
Depending on the stage of your idea, you can receive up to €20.000. This amount is available for all three partner countries. Each case will be analysed specifically with the start-up and the partners.
If you have only an idea, i.e. you enter the programme as a Stage 1 start-up, you must be incorporated by the end of the programme to receive all the payments. MED ClimAccelerator will support you in this process.
ClimAccelerator Process
Yes, Climate-KIC will invest in and support all start-ups that proceed from Stage 1 to Stage 2 and receive the larger grant funding package. They do not have to enter Stage 3 should they not wish to.
No, Climate-KIC only invests in companies that enter Stage 2 and therefore receive the grant funding from the ClimAccelerator.
EIT has designed the Climate-SAFE to be as founder-friendly as possible and with an offering in line with other accelerator programmes across Europe. If a start-up does not wish to sign the Climate-SAFE then they cannot proceed through the programme.
EIT has designed the Climate-SAFE to be as founder-friendly as possible. Therefore there is no requirement for negotiations around the investment agreement.
Climate-KIC will be fully responsible for monitoring the portfolio, we will have regular communication with the start-ups and will manage any conversion process.
Key Terms & Definitions
The long-stop date is an agreed timeframe, starting from when the agreement is signed, where the company will go out and raise further funding that will trigger the conversion of the Climate-SAFE. If the long-stop date is reached and there has been no further funding then Climate-KIC, along with the Company shall determine a fair valuation for the conversion with an external valuator.
A valuation cap is a key feature of most convertible investments. It is an upper limit on the valuation at which a convertible investment will convert. Climate-KIC chose not to include a valuation cap in our Climate-SAFE, this way, we do not limit the valuation of the companies we invest into.
- Example 1. With a €5m valuation cap
Investor A invests €50,000 into Company
Company raises €2m investment at €10m pre-money valuation
Investor A receives 0.83% equity. - Example 2. With no valuation cap
Climate-KIC invests €50,000 into Company
Company raises €2m investment at €10m pre-money valuation
Climate-KIC receives 0.42%
Equity and Ownership
As with all convertible investments, this is entirely dependent on the valuation that the company raises at in their subsequent funding round. We do not have a valuation cap, and so will follow whatever valuation is agreed with the later stage investor (typically investors would put a cap in to ensure they take a minimum amount of equity, like 7-10%).
- Example 1. Company raises at a valuation of €5m
Climate-KIC ownership = 50,000/5,000,000 = 1% - Example 2. Company raises at a valuation of €10m
Climate-KIC ownership = 50,000/10,000,000 = 0.5%
What does the start-up get?
As part of the investment, the start-up will receive access to the ClimAccelerator and the €20,000 grant funding. Further to this, Climate-KIC will provide additional services as outlined in the Climate-SAFE deck.
No, there is no limit, Climate-KIC is incentivised to support the start-ups growth.
No, there is no limit, Climate-KIC is incentivised to support the start-ups growth.
Climate-KIC will provide the additional services for the duration of time that we’re shareholders in the business – in most cases through to an exit scenario.
For the Start-up
If there are any proceeds from the company winding up (sale of assets) then this will be distributed amongst shareholders including Climate-KIC as per ownership.