Top 10 EU Grants for Startups in 2025: Important Steps to Master Equity-Free Funding

In the competitive landscape of European entrepreneurship, securing funding without diluting ownership has become a strategic priority for founders.

Probably because European startups don't have that many funding options.

EU grants represent one of the most valuable equity-free funding sources, enabling startups to scale, innovate, and compete globally while maintaining full control of their ventures.

But are they worth it?

Let's dig in.

In the complex landscape of EU funding, startups need every advantage they can get. The EU Grants Finder and Writer offers a state-of-the-art AI suite of tools specifically designed to help startups find suitable grants and write the first application draft for an EU startup grant. Our platform cuts through the bureaucracy, translates complex EU terminology into startup-friendly language, and significantly increases your chances of securing equity-free funding. Don't waste valuable time navigating the labyrinth of EU grants alone – let our AI-powered solution streamline your path to success.

Understanding EU Grants: The Equity-Free Advantage

Equity-free funding allows startups to raise capital without surrendering company ownership. Unlike traditional equity financing, EU grants provide non-dilutive capital that doesn't require founders to relinquish control or decision-making power. This funding approach is particularly valuable for early-stage startups looking to validate their concepts, develop prototypes, or expand operations without the pressure of investor expectations.

With over €2 billion allocated for startup grants in the first quarter of 2025 alone, the European Union continues to demonstrate its commitment to fostering innovation across various sectors including technology, AI, green energy, agriculture, and tourism.

Are EU Startup Grants worth the effort?

EU grants present a compelling but complex funding avenue for startups. On one hand, they offer significant advantages that can accelerate growth and innovation without diluting equity. According to a 2025 report, 70% of startups that received EU funding reported accelerated growth and increased market reach within two years. These grants provide non-repayable funding, expert support, and valuable networking opportunities that can transform early-stage ventures.

The benefits extend beyond mere financing. EU support programs offer startups access to expertise, guidance, and mentorship from seasoned professionals through incubators and accelerators. They help navigate complex regulatory landscapes and foster collaboration among startups, research institutions, and industry partners. For many startups, especially those focused on green energy, climate tech, sustainability, and AI—current EU funding priorities—these grants can provide the runway needed to develop innovative solutions.

However, the path to securing EU funding is fraught with challenges. The application process is notoriously time-consuming and complex, with more than two-thirds of respondents reporting they needed to engage external advisors to navigate the grant application and reporting requirements. The competition is extremely high, with sometimes over 100 proposals competing for the same call, and even high-quality proposals frequently get rejected. This means startups invest significant time and resources with no guarantee of success.

Some founders have experienced even more serious issues. Several high-tech European startups awarded cash by the European Innovation Council (EIC) Accelerator reported being left in financial difficulty when funding expectations weren't met, with some facing potential bankruptcy. Critics argue that the bureaucratic burden continues even after receiving grants, with approximately 50% of activities in funded projects going toward writing reports rather than building products. As one entrepreneur bluntly put it: "My overall impression is that you need to choose between building your startup and building a company that gets EU grants." (btw, that entrepreneur is me, Violetta Bonenkamp).

The decision to pursue EU grants ultimately depends on a startup's specific circumstances, resources, and tolerance for bureaucracy. While these grants can provide crucial non-dilutive capital and support for innovation-focused ventures, founders must carefully weigh the administrative burden, long timelines, and opportunity costs against potential benefits. For those who decide to proceed, understanding the specific requirements, setting realistic expectations, and potentially engaging expert help can improve chances of success in this challenging but potentially rewarding funding landscape.

If you are still interested, let's check out some of the most popular grants.

Top 10 EU Grants for Startups in 2025

1. European Innovation Council (EIC) Accelerator

The EIC Accelerator stands as the flagship funding program for European startups, with a massive €1.4 billion investment planned for 2025. This program targets deeptech and high-potential startups, offering grants below €2.5 million and equity investments ranging from €500,000 to €10 million. The application process follows a three-step approach: a short proposal submission, full proposal development, and a face-to-face interview with the EIC jury.

What makes it unique is its blended finance option, combining grants with equity investments, though applicants can also opt for grant-only or equity-only funding. The program particularly values innovations that create new markets or disrupt existing ones.

2. Horizon Europe's Widening Programme

The European Commission is launching the first European Innovation Council (EIC) pre-accelerator calls in 2025 specifically for startups in Widening countries. This initiative aims to reduce the research and innovation gap between economically stronger and developing EU member states, creating a more balanced innovation ecosystem across Europe.

The Widening Programme includes the Hop-on Facility, which allows new participants from widening countries to join ongoing Research and Innovation Action projects under Pillar 2 and EIC Pathfinder projects that don't yet have partners from widening countries.

3. StepUp Startups Initiative

The StepUp Startups Initiative focuses on accelerating the growth of Europe's startup ecosystem through policy advocacy, capacity building, and community engagement. By the end of 2025, this initiative plans to deliver 12 data-driven policy reports addressing key issues facing the EU's startup ecosystem.

Beyond funding, StepUp provides valuable networking opportunities, mentorship, and resources to help startups navigate the complex European market landscape. This holistic approach makes it particularly valuable for founders seeking not just capital but also strategic guidance.

4. Women TechEU Project

Running from January 15 to March 17, 2025, the Women TechEU project has launched its third open call specifically supporting deep tech startups led by women. The project aims to select and support 40 women-led deep tech early-stage startups that contribute to green, digital, and social transitions.

This grant addresses the persistent gender gap in European tech entrepreneurship, providing not only funding but also mentorship, networking, and visibility opportunities specifically designed to help women founders overcome industry-specific barriers.

5. STEP Scale-up Scheme

With a €300 million budget for 2025 (projected to reach €900 million by 2027), the STEP Scale-up scheme offers investments of up to €30 million per project. This program focuses on strategic technology development and reducing dependencies within the EU.

Unlike traditional accelerator programs, STEP Scale-up targets more mature startups ready for significant expansion, helping them compete on a global scale while strengthening Europe's technological sovereignty in critical sectors.

6. Digital Europe Programme

The Digital Europe Programme (DIGITAL) is dedicated to accelerating digital transformation across Europe. With a focus on supercomputing, artificial intelligence, cybersecurity, advanced digital skills, and widespread adoption of digital technologies, this program offers strategic funding to address Europe's dependence on digital systems from other regions.

The program specifically targets startups developing solutions that enhance Europe's digital capabilities and equip businesses with advanced digital technologies, making it essential for tech-focused ventures.

7. Connecting Europe Facility (CEF)

The Connecting Europe Facility supports investments in trans-European infrastructure, particularly in transport, energy, and digital sectors. This program helps startups develop innovative solutions for these critical infrastructure areas, contributing to Europe's connectivity and sustainability goals.

For startups working on smart mobility, renewable energy systems, or digital infrastructure, CEF provides not only funding but also access to large-scale implementation opportunities across member states.

8. SME Fund 2025

Launching on February 3, 2025, the SME Fund provides funding opportunities for small and medium-sized enterprises focusing on intellectual property rights, including trademarks, designs, and patents. This fund helps startups protect their innovations while scaling their businesses.

The program offers a streamlined application process and provides not just funding but also guidance on IP strategy, making it particularly valuable for startups with novel technologies or brands requiring protection.

9. Climate Fintech Funding

Following the success of climate fintech startup Bees & Bears, which secured €500 million in financing commitments for home energy solutions, the EU has expanded funding opportunities for startups focused on climate technology and sustainability. These grants target innovations addressing climate change, resource efficiency, and circular economy principles.

The program demonstrates substantial investor interest in green technology and sustainability-focused startups, reflecting Europe's commitment to its climate objectives.

10. Cascade Funding Opportunities

February 2025 is packed with 25 cascade funding opportunities tailored for SMEs, startups, universities, researchers, and local authorities. These include programs like NGI Fediversity Open Call (€50,000 max funding), NGI TALER (for privacy-preserving digital payment methods), and BEFuture Acceleration Programme (€30,000 max funding).

Cascade funding represents a more accessible entry point for many startups, with streamlined application processes and focused objectives that align with specific EU innovation priorities.

Main Challenges Startups Face When Applying for EU Grants

Startups seeking EU funding encounter several significant obstacles throughout the application process. These challenges can make accessing these valuable non-dilutive funding sources difficult despite their potential benefits.

Bureaucratic Complexity

The application process for EU grants is notoriously complex and bureaucratic. According to a Eurobarometer survey conducted by the European Commission in 2020, approximately 45% of SMEs found the application process for EU funds to be complex and bureaucratic. This complexity creates a significant barrier for many startups and scale-ups navigating the landscape of EU-funded opportunities.

The structure of EU funding programs can be intricate, with varying eligibility requirements, application deadlines, and extensive documentation requirements. Many applicants find it challenging to decipher the guidelines and assemble all necessary materials within strict timeframes.

Time-Consuming Procedures

The EU grant application process is extremely time-intensive, often taking founders away from core business activities. As one entrepreneur bluntly stated: "My overall impression is that you need to choose between building your startup and building a company that gets EU grants." This opportunity cost represents a significant challenge for resource-constrained startups.

The evaluation stage can be particularly lengthy, sometimes taking longer than the actual project implementation period. Waiting periods for application results can range from three to twelve months, during which startups must continue operations without certainty of funding.

Highly Competitive Environment

Competition for EU grants is fierce, with extremely low success rates. For smaller grant programs, success rates can be as low as 0.6%, with only 10 projects selected from 1,500 applications in one recent example. For larger programs, competition can be even more intense, with thousands of applications competing for a limited number of grants.

Psychological Barriers

Many startup founders experience significant psychological barriers when approaching EU funding opportunities:

Fear of rejection: The high rejection rates can discourage applications
Imposter syndrome: Feeling "not qualified enough" to receive funding
Self-doubt: Questioning whether their project is worthy of support

These psychological factors can prevent startups from even beginning the application process.

Cross-Border Challenges

For startups operating across multiple EU countries, navigating different legal frameworks, employment regulations, and administrative processes can be particularly cumbersome. This cross-border complexity adds another layer of difficulty for startups seeking to expand throughout Europe while utilizing EU funding.

Post-Award Bureaucracy

Even after securing funding, startups face ongoing administrative burdens. Project management requirements can be onerous, with approximately 50% of activities in funded projects going toward writing reports rather than building products. This continued bureaucratic overhead can significantly reduce the net benefit of the funding received.

Despite these challenges, EU grants remain a valuable potential funding source for startups willing to navigate the complex landscape, particularly those aligned with EU priorities like sustainability, digital transformation, and innovation.

So what is it that you have to do to increase your odds of success?

Essential Steps to Master EU Grant Funding

1. Identify the Right Program

Research thoroughly to find the grant program that aligns with your startup's sector, development stage, and strategic objectives. Use the EU Funding & Tenders Portal as your primary resource, and consider consulting with grant specialists who understand the nuances of different programs.

2. Understand Eligibility Requirements

Each grant program has specific eligibility criteria regarding company size, location, innovation focus, and team composition. Pay particular attention to geographic requirements, as some programs specifically target startups from widening countries or require partnerships across multiple EU member states.

3. Craft a Compelling Narrative

Successful applications tell a compelling story about your innovation's potential impact. Clearly articulate how your solution addresses European priorities like sustainability, digital transformation, or social inclusion. Use concrete metrics and evidence to support your claims about market potential and innovation value.

4. Develop a Robust Business Plan

EU grants increasingly emphasize commercial viability alongside innovation. Prepare a comprehensive business plan that demonstrates your understanding of the market, competition, scaling strategy, and financial projections. Show how the grant will accelerate your path to market and sustainability.

5. Build Strategic Partnerships

Many EU grants favor collaborative projects that bring together different types of organizations across multiple countries. Consider forming partnerships with research institutions, larger companies, or complementary startups to strengthen your application and implementation capacity.

6. Master the Application Process

Follow application guidelines meticulously, respecting all formatting requirements and submission deadlines. For programs like the EIC Accelerator, prepare thoroughly for each stage, from the initial short proposal to the pitch deck, video presentation, and potential face-to-face interview.

7. Demonstrate European Value-Added

Emphasize how your innovation contributes to broader European objectives like competitiveness, sustainability, or digital sovereignty. Explain how your solution can scale across multiple European markets and address shared challenges.

8. Plan for Compliance and Reporting

EU grants come with strict compliance and reporting requirements. Develop systems for tracking expenditures, documenting progress, and measuring impact before you receive funding. This preparation will simplify management and ensure you meet all obligations.

9. Leverage Support Resources

Take advantage of National Contact Points, Enterprise Europe Network advisors, and other support services that can provide guidance on application preparation and grant management. Many regions also offer proposal review services or matching funds to supplement EU grants.

10. Prepare for Post-Grant Strategy

View the grant as one component of your broader funding strategy. Plan how you'll leverage grant achievements to attract subsequent funding, whether through follow-on grants, private investment, or revenue generation. The most successful grantees use EU funding as a catalyst rather than an end goal.

Top Resources for Founders to Learn About EU Grants

Finding the right EU grant opportunities can be challenging for startup founders. Here are valuable resources where you can learn more about available grants and how to secure them:

Online Platforms and Portals

Fe/male Switch - Offers comprehensive guides on EU grants for startups, including detailed articles on equity-free funding opportunities and application strategies. Their platform features insights from founder Violetta Bonenkamp and practical tips for navigating the EU funding landscape.
EU Funding & Tenders Portal - The official EU portal where you can directly apply for grants and contracts managed by the European Commission.
Kaila - An innovative platform that facilitates access to funding opportunities for tech startups in Europe, providing up-to-date information on funding programs, investors, and relevant events.
EUcalls.net - Offers guidance on EU funding programs specifically for startups, helping you understand the process and find the right partners.

Educational Resources

Joistpark Academy - Provides an introductory course in EU funding for newcomers who want to understand the mechanisms of EU funding and explore opportunities.
EU-Learning.net - Offers a comprehensive handbook about EU-Funding Opportunities 2021-2027, providing an overview of the main funding instruments offered by the European Union.
Welcomeurope - Provides guidance on European funding for business start-ups, explaining how the process works and offering practical advice.

Grant-Specific Resources

European Innovation Council (EIC) - Information about the EIC Accelerator, Pathfinder, and Transition programs, which are major funding opportunities for innovative startups.
Women TechEU - Specific information about equity-free grants for women founders in deep tech, offering €75,000 in non-dilutive grants and business development support.
Digital Europe Programme - Details about funding opportunities for startups focused on digital transformation, AI, cybersecurity, and advanced digital skills.

AI-Powered Grant Tools

For founders looking to streamline the grant discovery and application process, the EU Grants Finder and Writer offers a state-of-the-art AI suite of tools specifically designed to help startups find suitable grants and write the first application draft for an EU startup grant.

These resources provide valuable starting points for founders looking to navigate the complex but rewarding world of EU grants. By leveraging these platforms, you can identify the most relevant opportunities for your startup and increase your chances of securing equity-free funding.

FAQ on EU Funding for Startups

What makes EU grants different from other funding sources?

EU grants provide non-dilutive funding without requiring equity in return, allowing founders to maintain full ownership and control of their startups. They typically focus on innovation with broader societal impact rather than purely commercial returns.

Are EU grants only available for tech startups?

While many programs focus on technological innovation, EU grants support diverse sectors including creative industries, social enterprises, green technologies, and traditional industries undergoing digital transformation. The key is demonstrating innovation and potential impact.

Do I need to be based in the EU to apply?

Most EU grants require applicants to be legally established in an EU Member State or Associated Country. Some programs specifically target "widening countries" to reduce innovation disparities across Europe. Always check the specific geographical eligibility for each program.

How competitive are EU grants?

Competition varies by program, but flagship initiatives like the EIC Accelerator are highly competitive. The most recent EIC Accelerator funding round selected just 71 companies from 1,211 applications, making it the most competitive round since the program's launch under Horizon Europe.

Can startups at any stage apply for EU grants?

Different programs target different maturity levels. Some focus on early-stage concept validation, while others support scale-up activities for more established startups. The EIC Accelerator, for instance, is designed for startups ready to scale breakthrough innovations.

What expenses can EU grants cover?

Eligible costs typically include personnel, equipment, materials, subcontracting, travel, and overhead expenses directly related to the project. Capital expenditures and certain operational costs may be covered depending on the specific program guidelines.

How long does the application process take?

Timelines vary by program. For the EIC Accelerator, short applications receive feedback within 4 weeks, while the full evaluation process including interviews can take several months. Plan for a 3-6 month process from application to funding decision for most major programs.

Can I apply for multiple EU grants simultaneously?

Yes, you can apply for different programs if your project meets the eligibility criteria for each. However, the same specific costs cannot be funded twice by the EU budget (no "double funding"), so applications should target different aspects of your innovation or business.

What reporting requirements come with EU grants?

Most grants require periodic technical and financial reporting, demonstrating progress against milestones and proper use of funds. The frequency and complexity of reporting vary by program, with larger grants typically having more stringent requirements.

How can I increase my chances of success?

Start preparation early, thoroughly understand program objectives, align your proposal with EU priorities, demonstrate clear impact and innovation, build strong partnerships, and seek feedback on your application from experienced advisors or National Contact Points.

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.