Two Turku-based companies receive multi-million funding from the EU Commission
Two companies based in Turku have received significant funding from the EU’s Horizon Europe programme. The applications of Comptek Solutions Oy and TM System Finland Oy fulfilled the tight conditions set for funding. The requirement was an ambitious and globally significant project that has a disruptive impact on the current markets or even creates completely new markets.
The European Commission’s funding under the European Innovation Council (EIC) Accelerator programme aimed at highly innovative, growth-oriented start-ups and SMEs comprises of two modules. The share of the grant is at most 2.5 million euros, and the capital component granted either as a direct investment, equity loan or security totals 0.5–15 million euros. The guarantor is the European Investment Bank. In addition to financial support, the qualifying companies may use coaching, mentoring and other support services free of charge.
Comptek Solutions is a start-up business founded in 2017, with roots in research activities of the University of Turku which were promoted through a project funded e.g. by Tekes in the previous decade. The company develops new semiconductor technology which can be used, for example, to improve considerably the efficiency of displays and other electric devices, reduce the energy consumption, and create faster data networks and more efficient solar panels.
New compounds have emerged alongside silicon, the traditional raw material of semiconductors. Compound semiconductors based on gallium, indium and arsenic are, however, easily oxidised, which complicates their production process and keeps their efficiency low for now. To tackle this challenge, Comptek Solutions has developed a breakthrough technology under trade name Kontrox. It makes the surface of the material almost faultless and at the same time protects the surface, which helps to lower the production costs and make e.g. micro-LEDs incredibly efficient. The company has now received funding from the EU’s Horizon Europe programme for measures for the commercialisation of the technology, such as scalability of production.
Another Turku-based company that received funding from the same programme is TM System Finland Oy. Founded in 1974, the cleantech company supplies technologies that save energy and eliminate greenhouse gas emissions e.g. to the pulp and paper industry as well as mechanical forest industry. Within its SuperDryerTM project TM System Finland Oy is developing a clean (zero emission) scalable drying system for fibre masses which will turn the drying of e.g. market pulp and recycled pulp, sludge and recycled textile fibre into an emission-free and CO2 negative process that consumes less energy. SuperDryerTM runs on renewable energies and also supports the growth of recycling economy, enabling emission-free drying process in different size classes and in a financial viable manner. The prototype of the system is already up and running, and in the next phase the company will start industrial scale equipment in a production plant and commercialise the product.
Launched in March 2021, the EIC programme received over 4,000 applications in two rounds, and some 1,800 companies submitted a supplemented application either in June or October. Olli Mankonen, Growth Advisor specialising in business and RDI partnerships in Turku Science Park Ltd, says that receiving EIC funding requires passing a tight scrutiny. Finnish companies were successful in the application process.
“As a result of the application rounds, 164 companies have received a positive decision on funding. Among the 99 companies qualified in the latter round in December there were four other Finnish companies in addition to the two from Turku. Of those, Askel Healthcare Oy and Broadbit Batteries Oy received a grant. In addition to the Turku-based companies, Fimuskraft Oy and Lekatech Oy were given both financing components.”
“This funding is highly competitive. Receiving it calls for extremely significant business potential and technological know-how. Hence the application process also comprises of several phases, and the capital component also includes due diligence process after the completion of which the final amount of capital investment will be confirmed”, Mr Mankonen says. EIC’s total funding for the December round was 627 million euros. The total value of the EU’s Horizon Europe framework programme for research and innovation for years 2021–27 amounts to 95 billion euros. In Finland, free public advisory services related to EIC funding are provided by Business Finland, but it is also possible to discuss the matter further with Olli Mankonen from Turku Science Park.