The Role of Consultants in Highly Competitive Funding Instruments

​By Xavier Aubry, Vice President, European Association of Innovation Consultants (EAIC), and Luc Ragon, President, EAIC.

Given the highly competitive nature of many funding programmes, it is easy to see why applicants turn to consultants. Complementing NCPs (National Contact Points), their support involves identifying and qualifying the appropriate funding instruments and providing strategic and operational assistance throughout project preparation and the application process. Consultants also support project implementation, with a view to maximising results and leveraging the impact of the funding. 

Due to low acceptance rates, some stakeholders criticise funding authorities for creating what they perceive as overly complicated procedures, effectively making consultants a common—though not exclusive—choice for assistance. However, the use of consultants is largely a consequence of increased specialisation, as organisations now tend to rely on dedicated experts for support. 

A Deeper Look at Why Applicants Hire Consultants 
One reason applicants seek consultants is the low success rates of popular funding programmes, often with acceptance rates below 5%. With external reviewers assessing applications on excellence, consultants help applicants position their projects as competitive, compelling, and impactful. In other words, a consultant’s experience and expertise improve the likelihood of securing funding. 

In many cases, applicants lack the means for the laborious process of developing a project concept, agreeing on roles and responsibilities, and defining targets. Not all organisations have the capacity to hire internal support specialising in external funding processes. Without experienced consultants facilitating the process and advising all partners in the consortium, many great RDI projects would not see the light of day. Put simply, engaging consultants ensures broader participation in RDI projects, which in turn bolsters Europe’s innovation potential. 

For programmes like Horizon Europe collaborative calls, which require forming and managing consortia, consultants assist coordinators in guiding the group. They ensure that the core project concept developed by key partners remains cohesive while additional partners strengthen the overall project. Consultants also play a key role in identifying valuable partners to complete the consortium and facilitating budget discussions. They help ensure that plans align with grant agreement rules and support planning to maximise the impacts. 

While the EIC Accelerator programme does not require applicants to assemble a consortium, it involves multiple, highly selective stages. In the first stage, applicants must submit a pitch deck and a video to convey the project's vision within a limited timeframe. Here, consultants enhance the clarity, cohesion, and persuasiveness of pitch decks and video scripts by leveraging their marketing and communication skills. In the second stage, applicants submit detailed documents, including a business plan and a financial annex aligned with the company's overall fundraising strategy. At this point, consultants often provide financial modelling expertise, ensuring projections and plans are consistent with the growth trajectory expected by funders. 

Variety of Business Models but None Using Project Grants 
Consulting arrangements vary widely. Some consultants charge upfront fees based on the hours worked. However, many start-ups, universities, research centres, SMEs, and even large organisations find it difficult to pay significant upfront fees, especially for instruments with low success rates. This has led to alternative consulting models, including a mix of upfront and success fees or arrangements based solely on success fees. 
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In a success-based model, consultants may charge higher fees upon success if they can demonstrate a track record of achieving success rates several times the average. This structure appeals to start-ups by minimising initial financial risk, though it requires a larger payout upon successful funding. 

This model incentivises consultants to invest significant effort in the application process, as their compensation depends on successful outcomes. However, the risk borne by consultants means that success fees must also cover the cost of unsuccessful cases. 
Crucially, the cost of consultants cannot be covered by grant funding. Grant agreements explicitly state that funds are only available to cover costs incurred after the grant agreement is signed. Therefore, hiring consultants to support the application process does not constitute misuse of European Commission funding. 

Conclusion 
Just as specialised intellectual property (IP) experts are essential for successfully filing patent applications, fundraising for a complex grant application requires a deep understanding of funding dynamics and financial strategy. Some organisations may be able to develop these skills internally. However, for many, doing so would divert time from critical activities such as product development, sales, or human resources—tasks that cannot be outsourced in the early stages of a business. 

As an investor in an early-stage start-up, would you prefer that the CEO spends two months full-time preparing a perfect EIC Accelerator application with co-founders, or that they spend only 40 hours providing input to an external consultant while focusing on signing early customers? Similarly, as a trustee of a university, would you prefer researchers to spend months preparing an application rather than conducting core research? 
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Ultimately, a consultant's contribution significantly enhances the chances of success in highly competitive environments. By leveraging their skills, networks, and knowledge of funding dynamics, consultants help turn innovative ideas into funded projects, driving growth and development across various sectors. Engaging consultants is not merely a matter of convenience; it is a strategic investment in the future of any organisation pursuing funding and impactful R&D.