Leveraging EU Funding: A Bio-Startup’s Gateway to the European Market 

In the competitive and innovation-driven pharmaceutical industry, accessing the European market can be both a challenge and an opportunity for bio-startups. European Union (EU) non-dilutive funding offers vital support to startups aiming to navigate this complex environment, providing the financial and strategic resources needed to bring innovative solutions tothe market. 

The Power of EU Funding for Israeli Startups 

Israeli startups have consistently demonstrated their innovative prowess, and their success in securing EU funding is a testament to this. For instance, in 2024, nine Israeli startups secured €130 million (approximately $142 million) through the European Innovation Council (EIC) Accelerator program, part of Horizon Europe. This substantial funding underscores Israel’s position as a leading player in the global innovation ecosystem. 

One standout example is MediWound Ltd., which received $17.75 million in blended funding from the EIC Accelerator. MediWound, known for its innovative burn treatment using pineapple-based gel, leveraged this funding to expedite the clinical development of EscharEx, a wound therapy for diabetic foot ulcers. The EU grant enabled MediWound to advance its product’s market introduction by four years, significantly boosting its market potential in both the U.S. and Europe​ (The Judea). 

Another notable recipient is JaxBio Technologies, a medical diagnostics startup from Netanya, Israel. JaxBio was awarded a $2.73 million grant, with the potential for additional mixed financing of up to €18.2 million. This funding is crucial for developing a revolutionary diagnostics platform for early lung cancer detection. In an industry where early diagnosis can save lives, EU funding is helping JaxBio accelerate its journey toward commercialisation and market entry​. 

Navigating the Funding Landscape: Strategies for Success 

For bio-startups, especially those from Israel, entering the European market requires more than just innovation—it requires strategic use of funding to overcome regulatory and market entry barriers. The Horizon Europe program, with its €95.5 billion budget, offers a range of funding opportunities tailored to different stages of product development and market readiness. 

Key funding mechanisms include Research and Innovation Actions (RIAs) and Innovation Actions (IAs). RIAs support early-stage research projects (TRLs 3-5), helping startups and research institutions develop proof of concepts. IAs, on the other hand, are designed for projects closer to market application (TRLs 6-8), providing the resources needed to scale and commercialise products​(Aurora Israel). 

The EIC Transition program is another critical tool for startups looking to bridge the gap between innovation and market readiness. This program provides grants of up to €2.5 million to support the development of technologies that have already demonstrated their feasibility. By focusing on advancing these technologies towards market entry, the EIC Transition helps startups mitigate risks and overcome the “valley of death”—the challenging phase where many innovations fail due to a lack of funding​. 

Paving the Way for Market Success 

For bio-startups, the European market represents not just a target but a strategic milestone that can propel them onto the global stage. The financial backing and strategic guidance provided by EU non-dilutive funding programs are invaluable tools in this journey. By leveraging these resources, startups can overcome the barriers of regulatory complexity and market entry, transforming innovative research into viable, market-ready products. 

Israeli startups, with their demonstrated agility and innovation, are particularly well-suited to harness these opportunities. Their successes, like those of MediWound, JaxBio Technologies, and Nurami Medical, exemplify how strategic use of EU funding can accelerate growth and facilitate entry into one of the world’s most competitive markets​. 

At Twinnovation, we recognize the potential of these funding opportunities and are dedicated to helping startups navigate this complex landscape. By connecting innovation with funding and market strategy, we aim to empower the next generation of bio-entrepreneurs to not just access the European market, but to lead it.