In the context of the Accelerator, non-bankability means “inability to attract sufficient funding”.
In the proposal, you must describe how you have tried to attract investment and why you were not able to safeguard sufficient funding.
A project proposal shall be considered as non-bankable if it is not able to attract sufficient financing due to the high-risk level or the existence of a market failure.
For instance these situations could include companies with:
• No revenues and no assets at all
• Not enough assets to be able to generate revenues
• Not yet profitable commercial activities
• Not yet attractive to other investors
The evidence of the non-bankability should be provided in the submission forms, through financial information related to the project launch and scale-up but also elements on the financial requirements, the equity (if applicable) and the need for EIC support.
Bankability and high-risk
The Enhanced EIC Pilot is aimed at financing high-risk innovations that due to their nature are not able to safeguard enough financing from the market, thus deemed non-bankable. High-level of risk and/or market failure will result in non-bankability.
It is then expected that the financing granted by the Enhanced EIC Pilot will decrease the level of risk, hence attract co-investors that would otherwise abstain.
For more information, check Section J. Bankability of the FAQs document here under.