Not every EU research funding opportunity requires a large consortium, a multi-year work plan, or months of proposal preparation. For startups, SMEs, and early-stage research organisations looking to access EU innovation funding for the first time, cascade funding offers a different entry point — faster, more accessible, and specifically designed for smaller organisations.
This article explains what cascade funding is, how it works within the Horizon Europe ecosystem, who it is designed for, and how to find the right opportunity.
What cascade funding is
Cascade funding — also known as financial support to third parties (FSTP) — is a mechanism through which Horizon Europe grants are distributed through an intermediary rather than directly by the European Commission.
The process works as follows: the Commission funds a large collaborative project, and within that project’s budget, a defined portion is set aside to be redistributed as sub-grants to third parties — typically SMEs, startups, researchers, or innovators — through an open call process managed by the project consortium.
In practical terms, this means that a consortium running a Horizon Europe project may launch its own open calls, select beneficiaries through a competitive process, and provide them with direct funding — typically ranging from €10,000 to €200,000 per award — to carry out specific activities aligned with the project’s objectives.
The result is a funding layer that sits beneath the main Horizon Europe grants, making EU innovation funding accessible to organisations that would not typically have the capacity or resources to apply directly to a full Horizon Europe call.
How it differs from a standard Horizon Europe grant
The differences are significant, and understanding them is essential for any organisation considering cascade funding as an option.
Scale. Cascade funding grants are substantially smaller than standard Horizon Europe grants, which can run into millions of euros per project. Most cascade awards sit between €50,000 and €150,000, though this varies considerably by programme.
Process. Applying for cascade funding means responding to a call published by a consortium — not by the European Commission directly. The application process is typically shorter, simpler, and faster than a standard Horizon Europe proposal.
Eligibility. Cascade funding calls are often specifically designed for SMEs, startups, and early-stage innovators. Many calls require that the applicant is a for-profit company, often with a minimum or maximum size threshold. Some calls have additional geographic eligibility requirements.
Accountability. Cascade funding recipients enter into a sub-grant agreement with the consortium — not a Grant Agreement with the Commission. However, the compliance obligations flow down: recipients must still document their activities, report on progress, and in some cases submit financial evidence to the consortium that will then incorporate it into its own reporting to the Commission.
Timing. Because cascade calls are published by active projects, they operate on their own timelines — independent of the main Horizon Europe work programme cycle. New calls open throughout the year, across a wide range of thematic areas.
Who cascade funding is for
Cascade funding is particularly well suited to:
SMEs and startups
looking to access EU innovation funding without the complexity of a full consortium proposal. Many cascade calls are explicitly targeted at companies with fewer than 250 employees, and some are specifically designed for pre-revenue startups or early-stage deep tech companies.
Research organisations and universities
that want to participate in EU-funded innovation without taking on the coordination burden of a full Horizon Europe project.
Innovators in specific technological domains
who fit the thematic scope of an active cascade project. Calls are typically narrow in scope — they are looking for organisations whose work aligns with the objectives of the parent project.
First-time EU funding applicants
who want to build experience and a track record in EU-funded work before engaging with larger, more complex programmes.
One important consideration: cascade funding is not a general-purpose innovation subsidy. Each call has a defined thematic scope determined by the parent project. An organisation that does not fit the topic of the call — regardless of the quality of its work — will not be selected.
How to find cascade funding opportunities
Finding the right cascade funding call requires knowing where to look. Unlike standard Horizon Europe calls, which are all published through the Commission’s Funding and Tenders Portal, cascade calls are published by individual project consortia — across a wide range of websites, newsletters, and platforms.
This fragmentation is one of the main practical challenges for organisations seeking cascade funding. Manually searching for relevant open calls is time-consuming and unreliable. Calls open and close on short timelines, eligibility criteria vary significantly, and a call that looks relevant may have a disqualifying criterion that only becomes apparent after reading the full documentation.
The European Commission’s Funding and Tenders Portal lists some cascade funding opportunities, but coverage is incomplete — many calls are published directly by project consortia on their own platforms and never appear in the central portal. A more reliable starting point is cascadefunding.eu, a dedicated hub that aggregates active cascade funding open calls from across Europe in one place. Organisations can browse current opportunities directly on the site, and by subscribing to the newsletter, receive daily updates on new and closing calls — so no relevant opportunity is missed due to timing.
Another option is the Cascade Funding Matcher, part of the Kronis ecosystem and available at cascadefunding.eu/matcher, addresses this directly. It is an AI-powered tool that connects your organisation’s profile — sector, technology, size, location — with active cascade funding open calls across Europe. It checks eligibility, scores your fit across three dimensions, and returns a ranked list of relevant calls with plain-language explanations of why each one matches or does not.
Three searches are free, with no credit card required. For organisations that are actively looking for cascade funding opportunities, it cuts the shortlisting process from hours to minutes.
What happens after you find a call
Once a relevant call is identified, the application process typically involves:
- Submitting a short proposal — usually 5 to 15 pages — describing the organisation, the proposed activities, and the expected outputs
- Demonstrating eligibility against the call’s specific criteria (company size, sector, location, TRL level, etc.)
- Participating in an evaluation process managed by the consortium, typically involving external reviewers
- If selected, signing a sub-grant agreement and beginning the funded activities
Timelines vary, but many cascade calls move faster than standard Horizon Europe calls — from application submission to funding decision can take as little as two to three months.
Once funded, recipients must deliver on their commitments, maintain adequate records of activities and costs, and report to the consortium at defined intervals. The compliance requirements are real, even if the grant is smaller — and organisations that enter cascade funding as a first step into EU-funded work should treat it as a genuine introduction to the compliance culture of the broader programme.
Final thoughts
Cascade funding is one of the most accessible entry points into the EU innovation funding ecosystem. For SMEs, startups, and first-time applicants, it offers a realistic path to EU-backed funding without the complexity of a full Horizon Europe proposal.
The practical challenge is finding the right call at the right time. With dozens of active programmes running simultaneously across Europe, having a tool that matches your profile to relevant open calls — and explains exactly why each one fits or does not — makes a material difference to how efficiently you can navigate the landscape.
If you are exploring cascade funding opportunities, start at cascadefunding.eu/matcher.
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