The European Commission launched Horizon 2020 (now Horizon Europe) as part of its ambitious Europe 2020 strategy, with a vision to drive sustainable growth, job creation, and global competitiveness. This program was designed to foster innovation and research, acting as a critical lever for Europe’s economic future.
By placing a strong emphasis on excellent science, industrial leadership, and societal challenges, Horizon 2020 aimed to secure Europe’s position as a leader in global innovation. However, with significant public funds involved, ensuring the effective allocation of these resources was paramount.
Startup Valuation as a KPI for Program Success
To achieve its objectives, Horizon 2020 relied on multiple funding agencies across the EU, including Enterprise Ireland, CDTI in Spain, APRE in Italy, DLR in Germany, and KPK in Poland. These agencies were entrusted with managing substantial investment portfolios aimed at fueling innovation.
Evaluating the impact and financial health of these investments required careful analysis, especially when it came to assessing the value generated by funded companies. Equidam, through our partnership with Horizon 2020, provided a structured, data-driven approach to valuations, enabling these agencies to measure the effectiveness of their investments with a transparent methodology, using updated market data and valuation parameters.
Key Objectives
Equidam collaborated with the Horizon 2020 initiative to bring clarity and accountability to the evaluation process. Over the course of the project, Equidam conducted valuations for more than 150 companies across five EU countries. Leveraging its proprietary valuation platform, Equidam provided:
- Objective Valuation Analysis: By using a combination of financial data, industry benchmarks, and forward-looking projections, Equidam ensured consistent and unbiased valuations across diverse sectors.
- Comprehensive Reporting: The data gathered from these valuations was systematically analyzed to provide insights into the program’s impact, helping the EU demonstrate the effective allocation of public funds.
- Strategic Insights: Equidam’s valuations enabled the agencies to better understand the potential of their portfolio companies, supporting informed decision-making for future funding and strategic initiatives.
Impact and Outcomes
The partnership between Equidam and the Horizon 2020 agencies ensured that public funds were deployed effectively, driving innovation while maintaining transparency. The data generated from the valuations helped the European Commission report back to stakeholders on the success and outcomes of the program, fostering trust and accountability.
By aligning with Equidam’s mission of making valuations fair, transparent, and accessible, the project not only strengthened Horizon 2020’s objectives but also highlighted the value of looking at valuation as a fundamental KPI in assessing the effectiveness of public investments.
Equidam’s involvement in the Horizon 2020 program underscores the importance of rigorous valuation practices in large-scale public investment initiatives. By assisting in the evaluation of over 150 companies, Equidam contributed to ensuring that EU funds were used strategically, driving sustainable growth across Europe. This case study exemplifies how Equidam’s valuation expertise can be applied to optimize the impact of investment programs globally, reinforcing its mission of making valuation a powerful strategic tool.