COVID-19 is having a devastating impact on business sectors across Europe. With financial support packages now proving a vital component in efforts to safeguard companies struggling to generate revenue amid the pandemic.
EIT InnoEnergy has stepped forward to offer such backing to energy startups. It has secured €7.3 million from the European Institute of Innovation & Technology (EIT) to help keep more than 20 young firms in business and maintain the continent’s momentum in progressing the transition to renewable energy. The importance of the move is demonstrated by EIT InnoEnergy’s recent survey, where it carried out over 2000 phone and video interviews, and discovered over half of startups expect to lose more than 50% in revenue because of COVID-19.
Diego Pavia, CEO of EIT InnoEnergy, said: “The impact of COVID-19 on energy innovation cannot be overstated; without support, much of the past decade’s progress on the energy transition will be lost.
“Speaking to our portfolio, the message is clear; they need a cash injection now to ensure their survival. COVID-19 has put on hold the expected sales, capital increases or previous commercial agreements, they need our support now more than ever.
“With the EIT, we have worked tirelessly to put the support in place that will save our start-ups. This funding not only helps to secure jobs and mitigate the risk to existing investments, but ultimately forms a cornerstone to Europe’s sustainable recovery too.”
Eligible candidates are now being asked to provide an updated business committee to receive support.