Biotech funding consultant for companies across the EU
We match biotech companies in the EU with the European and German programmes that fit their science and stage, from assay and strain development to preclinical and clinical work. Non-dilutive funding extends your runway. We write the documentation and deal with the authorities.
Non-dilutive funding for the years between discovery and data
Biotech funding has to carry years of lab work before the first revenue, and life sciences funding rarely comes from one source. Which programmes fit depends on three things: whether your work is medical or industrial, where your company is established, and whether you work alone or with partners.
Why biotech companies have more funding options than they use
Biotechnology grants and tax credits come from Brussels and from Germany, and most teams only check one side.
Open to companies across the EU
The EIC Accelerator and Horizon Europe accept companies established in an EU member state or an associated country. Eurostars projects are led by an innovative SME from a participating country. None of these grants for biotech startups and SMEs needs a German entity.
Germany as an R&D base
A German company, or the German permanent establishment of a foreign one, can claim the Research Allowance. KMU-innovativ and ZIM ask for a permanent establishment or branch in Germany when the grant is paid out.
Medical and industrial biotech take different routes
Drug development maps to KMU-innovativ: Biomedizin (biomedicine) and Horizon Europe Cluster 1 (Health). Industrial biotech maps to KMU-innovativ: Bioökonomie (bioeconomy) and Cluster 6, which covers food, the bioeconomy and natural resources.
Long timelines before revenue
Discovery, optimisation and preclinical work run for years before any revenue. The Research Allowance is claimed per financial year and paid out even when the company makes a loss, so each year of qualifying R&D can be claimed in turn.
Biotech R&D that funders typically support
Funders look for novelty and scientific or technical risk. Each programme then sets its own rules on stage, partners and which costs count.
Assay and method development
- New assays, screening systems or analytical methods
- Method validation under uncertainty (sensitivity, specificity, reproducibility)
- Protocols developed where no standard solution exists
Typical routes: Research Allowance, Eurostars, KMU-innovativ: Bioökonomie for new bioanalytical methods. Diagnostic assays (IVD) go to KMU-innovativ: Medizintechnik; companion diagnostics developed with a new drug to KMU-innovativ: Biomedizin.
Strain and bioprocess engineering
- Strain construction and metabolic engineering
- Fermentation and bioprocess development from shake-flask to bioreactor
- Downstream processing and purification under new constraints
Typical routes: Research Allowance, KMU-innovativ: Bioökonomie, Horizon Europe Cluster 6, EIC Accelerator
Therapeutic and molecule development
- Lead identification and optimisation
- Formulation and delivery development
- Preclinical studies resolving biological uncertainty
Typical routes: Research Allowance, KMU-innovativ: Biomedizin, Horizon Europe Cluster 1, EIC Accelerator
Bioinformatics and computational biology
- Pipelines for sequencing, omics or screening data
- Predictive models for targets, variants or process parameters
- Computational methods validated against experimental data
Typical routes: Research Allowance, Eurostars. Model-heavy AI work is covered under AI and software funding.
Where each programme draws the line
The same biotech project can be fundable under one programme and excluded under another, and clinical work is treated differently by product type and programme.
Usually fundable
- Assay, strain or bioprocess development that resolves scientific or technical uncertainty (Research Allowance, KMU-innovativ, Eurostars)
- Drug development from preclinical work to clinical trials up to and including Phase IIa (KMU-innovativ: Biomedizin)
- Clinical trials of medicinal products before Phase IIIb, assessed project by project against the R&D criteria (Research Allowance)
- Collaborative health or bioeconomy research that matches a call topic, including clinical trials where a topic asks for them (Horizon Europe Clusters 1 and 6)
- Bioinformatics methods validated against experimental data (Research Allowance)
Usually not fundable
- Routine quality control, standard analytics and regulatory approval work on their own (Research Allowance)
- Phase IIIb and Phase IV trials and observational studies, with narrow exceptions for some Phase IV studies (Research Allowance)
- Individual curative trials, and diagnostics other than companion diagnostics for a new drug (KMU-innovativ: Biomedizin)
- Contract research with a CRO or institute managed outside the EU or EEA (Research Allowance)
- Work started before the application (KMU-innovativ, GRW, KfW innovation loans; BAFA EEW needs approval first)
What each type of funding pays
Each instrument pays in a different form. These are the official rates and caps, not a forecast for your project.
Research Allowance: 25% of eligible R&D costs, 35% for SMEs, on R&D wages, contract research and depreciation of equipment used exclusively for R&D. Projects started from 2026 add a flat 20% on these costs for overheads and other operating costs. From 2026 up to €3M a year, €4.2M for SMEs. Paid out even when the company makes a loss.
Horizon Europe: 100% for research actions, 70% for innovation actions, 100% for non-profits. EIC Accelerator: 70%, grant below €2.5M. KMU-innovativ: set by research stage and company size, with a bonus for SMEs. Eurostars: set by each country's funding body. EXIST: stipends for founders. ZIM: applications currently paused.
EIC Accelerator equity: €1M to €10M. KfW innovation loans: up to €25M per project. GRW: ceilings by region and company size, and each Land sets the actual rate. EU Innovation Fund: up to 60% of relevant costs. BAFA EEW: 10% to 60% by module and company size.
Rates and caps from the official programme rules, checked October 2026. The actual amount depends on eligible costs, company size, location and the funder's decision.
Which route fits your company
Location, stage and whether your work is medical or industrial decide the shortlist before the science does.
The EIC Accelerator for biotech startup funding and biopharma funding towards scale-up, Eurostars through your national funding body, and Horizon Europe consortia under Clusters 1 and 6.
Adds the Research Allowance. KMU-innovativ: Biomedizin or Bioökonomie and ZIM follow their own branch rules, and rates depend on whether you count as an SME.
EXIST, applied for through the institution, then the routes above once the company exists. More on startup funding.
GRW in eligible regions and KfW innovation loans, each applied for before you start, plus BAFA EEW for energy efficiency in your own production. First commercial plants whose products replace carbon-intensive ones can also apply to the EU Innovation Fund.
Programmes we recommend for biotech companies
Most biotech clients use more than one instrument between discovery and clinic or scale-up, and the shortlist depends on the science, stage and location.
EIC Accelerator
A grant below €2.5M plus €1M to €10M equity for single startups and SMEs with deep-tech therapeutics, platforms or bioprocesses, from TRL 6.
Explore programme →GrantHorizon Europe
Collaborative research under Cluster 1 (Health) and Cluster 6 (Food, Bioeconomy, Natural Resources, Agriculture and Environment), usually with three partners from three countries.
Explore programme →GrantEurostars
International R&D projects led by an innovative SME, with partners from at least two Eurostars countries. Each partner is funded by its own country's rules.
Explore programme →GrantEU Innovation Fund
Grants for first commercial-scale plants whose products substitute carbon-intensive ones, which can include bio-based production. Funds deployment, not R&D.
Explore programme →Research Allowance
25% of eligible R&D costs, 35% for SMEs on costs after 27 March 2024, credited against tax, retroactive to 2022.
Explore programme →GrantKMU-innovativ
SME research grants. Biomedizin funds drug development up to Phase IIa trials; Bioökonomie funds industrial biotech and bioprocess projects. Branch in Germany at payout.
Explore programme →GrantZIM
Grants for SME R&D projects, solo or in cooperation; applications currently paused.
Explore programme →GrantEXIST
For biotech spin-offs from German universities and research institutes. The institution applies on the team's behalf.
Explore programme →Investment grantGRW
Investment grants for a new or expanded production site in an eligible German region, applied for before work on the investment starts.
Explore programme →LoanKfW innovation loans
Low-interest loans for innovation and digitalisation projects in Germany, applied for through a bank or other financing partner before the project starts.
Explore programme →Investment grantBAFA EEW
Grants for energy efficiency, renewable process heat and energy management in your own production at a German site. Not for R&D; nothing may be ordered before approval.
Explore programme →GrantWIPANO
Grants towards an SME's patent filing or a company's work on technical standards, with a branch or permanent establishment in Germany.
Explore programme →Medical devices and in-vitro diagnostics have their own page under healthcare funding, crop and agricultural biologicals under agriculture funding, and bio-based materials at plant scale under cleantech funding.
How each programme works in detail is explained in our guides: EIC Accelerator, Horizon Europe, Eurostars, EU Innovation Fund, Research Allowance, KMU-innovativ, ZIM (currently paused), EXIST, GRW, KfW innovation loans, BAFA EEW and WIPANO.
Biotech and life science companies we have funded
Practical examples based on real projects, anonymised and with figures rounded.
Automated cell passaging and cultivation, integrating mechanics, control and a sensitive biological process into one reproducible system.
Read the storySecured funding for assay development and lab automation in a transnational project, documenting reproducible experimental work and the risk resolved along the way.
Read the storyFunded high-risk medical-technology research where the central question was whether the approach would work at all, not how to productise it.
Read the storyBiotech funding, answered
Yes, we work with biotech companies across the EU. Without a German entity, the main routes are the EIC Accelerator and Horizon Europe, which are open to companies established in an EU member state or an associated country, and Eurostars, led by an innovative SME from a participating country. German national programmes come into play once you have a permanent establishment or branch in Germany.
The EIC Accelerator, Eurostars and Horizon Europe are the three to check first. The EIC Accelerator funds a single startup or SME with a grant below €2.5M, covering 70% of eligible costs, and optional equity of €1M to €10M. Eurostars funds international R&D projects led by an innovative SME. Horizon Europe funds consortia under Cluster 1 (Health) and Cluster 6. National funding can come on top, as long as the same costs are never funded twice.
Yes, if it is taxable in Germany, typically through a German subsidiary or a permanent establishment. The tax authorities treat taxpayers with unlimited and with limited tax liability as eligible, so a foreign company with a German permanent establishment can claim. The allowance is 25% of eligible R&D costs, 35% for SMEs, credited against German tax. Contract research counts only if the contractor is managed in the EU, or in an EEA state that provides administrative assistance in tax matters.
Usually yes, if it resolves open scientific or technical questions. Assay development, strain engineering, lead optimisation and preclinical studies can count under the Research Allowance. KMU-innovativ: Biomedizin funds drug development from preclinical work onwards, and KMU-innovativ: Bioökonomie funds industrial biotech research. Routine quality control and standard analytics do not count. We help you draw that line in the project description.
It depends on the programme and the product. For medicinal products, BSFZ guidance on the Research Allowance generally excludes Phase IIIb and Phase IV trials, with narrow exceptions, and observational studies; earlier phases are assessed project by project. KMU-innovativ: Biomedizin funds clinical trials up to and including Phase IIa. Horizon Europe funds clinical trials where a Cluster 1 topic asks for them. Medical devices follow different rules, see healthcare funding.
Biomedizin if you develop medicines, Bioökonomie if you work in industrial biotech. KMU-innovativ: Biomedizin funds SMEs in red biotech that develop drugs, such as small molecules, advanced therapies and vaccines, plus companion diagnostics developed with a new drug. KMU-innovativ: Bioökonomie funds bio-based processes and products, from bioprocess engineering and biorefineries to metabolic engineering. In-vitro diagnostics belong to KMU-innovativ: Medizintechnik. Each field needs a site in Germany at payout and starts with a project outline.
Yes, within each programme's limits. Under the Research Allowance, contract research counts at 70% of the fee for contracts placed after 27 March 2024 (60% before), but only if the contractor is managed in the EU, or in an EEA state that provides administrative assistance in tax matters, so a CRO outside Europe does not count. Under KMU-innovativ: Biomedizin, external service providers may take at most 50% of the grant of each sub-project. Universities and research institutes can also join as funded project partners.
For the Research Allowance, yes: depreciation on equipment such as bioreactors, sequencers and analytical instruments can be included. The asset must be movable, acquired or produced after 27 March 2024, used exclusively in the R&D project and necessary for it. Low-value assets written off immediately do not count, and the certifying body (BSFZ) confirms each asset. Grant programmes such as KMU-innovativ set their own rules on equipment.
Yes, several programmes are built for that stage. The Research Allowance is paid out even when the company makes a loss: whatever exceeds your tax bill is refunded. The EIC Accelerator accepts startups, and even founders who will set up the company before the grant agreement is signed. Founders still at a German university or research institute can start with EXIST.
Yes, from investment programmes rather than R&D funding. In Germany, GRW funds new or expanded production sites in eligible regions, and KfW innovation loans finance innovation projects; both are applied for before you start. BAFA EEW funds energy efficiency in your own production. The EU Innovation Fund supports first commercial plants whose products replace carbon-intensive ones. None of these pays for lab R&D.
For the Research Allowance our fee is purely success-based: 10% of the funding up to €500k per year and 5% above that, due only after payout. For all other programmes the fee is a fixed share plus a success component, both agreed in advance. The first eligibility check is free and comes with no obligation.
Ask us anything
Tell us about your project, wherever in the EU it is based, and we'll assess your case by hand. No prep, no obligation. Prefer to talk?
