PRESS RELEASE
29 February 2024
Addressing the investment gap: A new project funded by the European Union has been launched, aimed at building a robust early-stage investment pipeline in Central and Eastern Europe
Healthy Investment Central Eastern Europe (HICEE) aims to boost innovations in Central and Eastern Europe (CEE), where start-ups receive only a third of the European average for VC investments.
The project consortium is spearheaded by EIT Health, Europe’s leading network of healthcare innovators, and a part of the European Institute of Innovation and Technology (EIT), a body of the European Union. The project partners represent business acceleration service providers and investor networks from Hungary, Poland, Slovakia, and Slovenia, as well as innovation hubs from Belgium and the Netherlands. The two-year initiative is strategically implemented under Horizon Europe, a flagship EU research and innovation programme.
The CEE region accounted for only 3.2% of Europe’s total venture capital investment in 2021. The start-ups receiving support in this region received an average venture capital investment of €1.2 million, representing a third of the European average of €3.8 million1. Attracting capital is one of the biggest challenges in developing European regions, known as modest and moderate innovation ecosystems, according to the European Innovation Scoreboard. The reasons include both fewer venture targets and a low number of investors, as well as an unwillingness to invest capital across borders.
“Research indicates that the investment gap in CEE is due to a lack of critical mass in both projects and investors. HICEE addresses this by focusing on supporting Tech Transfer Offices, cultivating knowledge-sharing through capacity building, and by building suitable investor infrastructure for early-stage ventures. The programme recognises the specific challenges faced by health and life science start-ups and aims to equip stakeholders with the knowledge needed for successful market translation”, explains Magda Krakowiak, Director of the EIT Health Accelerator.
Attracting €3M in capital with cross-border co-investments
The aim of the HICEE project is to create sustainable early-stage investment ecosystems, attract local and international investors, provide de-risking support, and actively share successful outcomes to foster continuous investor engagement. It will run its first activities in countries where partners are based, namely Poland, Hungary, Slovakia and Slovenia. However, its outreach and training opportunities will extend to other modest and moderate European regions.
The programme is expected to equip at least 10 start-up support organisations, such as Technology Transfer Offices (TTOs), with new methodologies. It also aims to train an additional 30 trainers who have the potential to impact up to 150 innovation projects/start-up ventures annually.
Other expected outcomes include vetting 25 health start-ups for advanced investment readiness in international markets and attracting millions in cross-border co-investments. Digital investment handbooks and a white paper on investment policies, published as a part of the project’s commitment to knowledge-sharing, will serve as invaluable guides for investors, contributing to a more informed and empowered investment community.
Targeting TTOs, universities, investors, and innovators, HICEE emphasises collaboration for sustained innovation in the region. The programme seeks to directly engage with the European Investment Fund, regional and national innovation agencies, and European policymakers to create an environment fostering long-term growth and forging living and lasting connections between innovation players in the region and beyond.
HICEE consortium partners
The project consortium consists of 10 partners from 7 European countries. This includes EIT Health (DE) as a coordinator, its affiliated entity EIT Health SI (DE) and the primary beneficiaries, namely Civitta (SK), Cobinangels (PL), Crowdberry (SK), EIT Health InnoStars (InnoStars) (DE), Hungarian Business Angel Network (HunBAN) (HU), Ljubljanski univerzitetni incubator (SI), MEDVIA (BE) and TU Delft (NL).
Additionally, the initiative will be drawing on the expertise of external stakeholders and advisory group members, i.e. KU Leuven (BE), Danube Angels (AT). Hungarian Export Promotion Agency Nonprofit, Inc. (HU), Business Angels Europe BAE (BE), Karolinska Institutet Innovations AB KII (SE), European Investment Fund EIF (LU), Invest Europe IE (BE), Arima d.o.o / Business Angels of Slovenia (SI).
Most of the HICEE consortium partners are already involved in activities closely linked to the project’s scope in their regions. Civitta runs an accelerator programme. Additionally, Civitta, TU Delft, Ljubljanski univerzitetni incubator and InnoStars have a very strong track record of collaborative joint programmes like the DRIVE programme or the RIS Jumpstarter programme.
EIT Health and the EIF already have a trusted working relationship and provide de-risked deal-flow to associated European investors through joint development of the Venture Center of Excellence (VCoE), a public-private co-investment programme connected to the €150 million Sustainable Development Umbrella Fund (SDUF).
“Our work with healthtech clusters in other parts of Europe have shown us that an abundance of innovation is not enough,” says MEDVIA CEO Ann Van Gysel. “It is necessary to bring these entrepreneurs – from the east and the west – together with investors who can help them bring those innovations to the market, helping hospitals to provide better care for patients. There is a gap in the sector for this kind of matchmaking.”
About The European Institute of Innovation and Technology (EIT)
The EIT is Europe’s largest innovation ecosystem bringing together close to 2,400 partners from top business, research and educational organisations across Europe in over 50 innovation hubs. The EIT strengthens Europe’s ability to innovate by powering solutions to pressing global challenges and by nurturing entrepreneurial talent to create sustainable growth and skilled jobs in Europe. The EIT is an EU body and an integral part of Horizon Europe, the EU Framework Programme for Research and Innovation. The Institute supports dynamic pan-European partnerships, EIT Knowledge and Innovation Communities, composed of leading companies, research labs and universities each dedicated to solving a pressing global challenge, from climate change to health, to renewable energy. For more information visit https://eit.europa.eu/ .
About EIT Health
EIT Health is a network of best-in-class health innovators with approximately 120 partners and is supported by the European Institute of Innovation and Technology (EIT), a body of the European Union. We collaborate across borders to deliver new solutions that can enable European citizens to live longer, healthier lives.
As Europeans tackle the challenge of increasing chronic diseases and multi-morbidity and seek to realise the opportunities technology offers to move beyond conventional approaches to treatment, prevention and healthy lifestyles, we need thought leaders, innovators and efficient ways to bring innovative healthcare solutions to market.
Our commitment to driving healthcare advancement is evident in our proactive role in mentorship, funding, and research facilitation. Recognised as a pivotal player in healthcare innovation, EIT Health’s accomplishments include catalysing over 2,500 start-ups and scale-ups, helping EIT Health-supported startups attract €1.9 billion in investment, propelling 113 healthcare solutions to the market, and training 49,000 students and professionals.
EIT Health addresses these needs. We connect all relevant healthcare players across European borders – ensuring the inclusion of all sides of the “knowledge triangle” so that innovation can happen at the intersection of research, education and business for the benefit of citizens.
EIT Health: Together for healthy lives in Europe. For more information visit: http://www.eithealth.eu
