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“We support companies to grow with the cascade funding of European funds”
Sara Mateo, leader of the Entrepreneurship Area of Zabala Innovation, details in this interview the characteristics of cascade funding
Cascade funding
The European programme will support innovative projects with agile aid to SMEs, startups and research centres
The cascade funding mechanism continues to consolidate its role as a key tool within the European strategy to support innovation and entrepreneurship. Under the Horizon Europe programme, over €650 million will be allocated in 2025 to projects that implement this instrument, which has been designed by the European Commission to facilitate access to public funding through calls managed by intermediary entities. These entities, after receiving European funding, launch their own competitive calls aimed at third parties—typically small companies or consortia—that receive grants usually ranging from €50,000 to €200,000.
Its main objective is to boost the adoption of innovative technologies, accelerate the growth of new enterprises, and support solutions with high potential impact. Furthermore, it significantly simplifies administrative procedures compared to traditional European calls.
In recent years, the number of initiatives using this funding distribution model has grown significantly, enhancing the participation of SMEs and startups in strategic innovation projects.
The recent pre-publication of the Horizon Europe work programmes for 2025 confirms this trend, with numerous calls prioritising financial support to third parties as a method to implement sectoral policies with greater agility and territorial outreach. This year, Clusters 3, 4 and 6, as well as the EU Missions, play a particularly prominent role.
“One of the entities with the most experience in this field is Zabala Innovation, which in recent years has managed more than 20 projects under this mechanism, channelling €47 million to over 1,300 beneficiaries,” says Sara Mateo, head of the Entrepreneurship knowledge area in European projects at this consultancy. Its role covers the entire process: from defining the calls and evaluating proposals to signing contracts and monitoring the disbursement of aid, ensuring traceability and compliance with the objectives set by the European Commission.
Mateo also highlights that Kaila, Zabala Innovation’s intelligent platform, publishes a constantly updated calendar of cascade funding calls.
Within Horizon Europe’s Cluster 3, a significant boost to innovation in security is expected, with a special focus on crime prevention, the resilience of critical infrastructures and responses to cross-border threats. The actions will also strengthen coordination through national networks and foster the adoption of technological solutions in cybersecurity.
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Cluster 4 will concentrate its efforts on areas such as generative artificial intelligence, the evolution towards Web 4.0, technological standardisation and robotic automation. These lines of action aim to consolidate a more autonomous, resilient and innovative European industrial ecosystem.
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Cluster 6 and the Missions will address challenges such as biodiversity, agricultural resilience, emergency nutrition and sustainable resource management. Strategies will be supported by digital tools, agroecological approaches and innovative models of rural governance.
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News
INTERVIEW
Sara Mateo, leader of the Entrepreneurship Area of Zabala Innovation, details in this interview the characteristics of cascade funding
Opinion
SMEs
Aitor Bilbao
Consultant and EIC Accelerator expert
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