If your company is considering applying for funding through ENISA co-investment participative loans, understanding how the viability of your project is assessed is key. When ENISA analyses an operation, it carries out a comprehensive evaluation of the company, combining financial, strategic, and business-related aspects. The objective is to determine whether there is a reasonable probability that the company will be able to execute its growth plan and repay the participative loan under the agreed conditions.
To do this, ENISA uses an internal analysis system that many entrepreneurs know as the ENISA rating, a methodology used to classify the risk of each operation and support the investment committee’s decision-making process.
In this article, we explain how ENISA evaluates the viability of a startup, which factors influence the ENISA rating, and which aspects usually make the difference between an approved and a rejected operation.
01
The ENISA rating system is designed to classify operations according to their level of risk.
This system assigns each project a rating ranging from A1, which indicates very low risk, to D1, which indicates very high risk.
| Rating | Risk level interpretation | ENISA interest rate |
|---|---|---|
| A1 – A3 | Low risk | Approx. 4.5% – 5% |
| B1 – B3 | Moderate risk | Approx. 5.25% – 5.75% |
| C1 – C3 | High risk but still financeable | Up to approx. 6.5% |
| D | Operation with a low probability of approval | Usually not financeable |
As shown in the table, the ENISA rating matters because it directly influences the probability of approval, the conditions of the operation, with interest rates ranging from approximately 4.5% to 6.5%, and the committee’s perception of risk. For an application to be approved, it must obtain at least a C3 rating. If the score is lower, the chances of approval are practically non-existent.
What makes ENISA different is that it does not rely solely on past financial performance. It also analyses the future viability of the project, its evolution, its growth capacity, and its degree of innovation.
Discover everything you need in our 👉 complete guide to ENISA funding for startups.
02
Step by step: how ENISA evaluates your project
Application and admission
The application is submitted through the Prometeo portal. The documentation must be complete, otherwise the application may be rejected at this stage.
Analysis phase
An analyst reviews the financial statements, the business plan, and the startup’s structure. They may request clarifications or additional information.
Investment committee
The project is presented to the internal committee, which evaluates the documentation and the score obtained to decide whether the operation should move forward.
Fulfilment of conditions
If the application is approved with conditions, such as a capital increase, these must be fulfilled before the process can continue.
Formalisation and disbursement
Once the legal process has been completed and the contract has been signed, the disbursement is usually made within 1–2 business days.
If you want to know more about how long each stage usually takes, we recommend reading our article 👉 How long does ENISA take to approve and disburse a loan?
03
Evaluation criteria: what does ENISA analyse to calculate a startup’s rating?
Founding team and shareholders
Experience, commitment, and ability to execute the plan. In startups with limited financial history, this point carries particular weight. ENISA also assesses the stability of the cap table and the commitment of the shareholders.
Business model and traction
Who pays, how the company monetises, what margins the business generates, and what evidence exists: sales, contracts, pilots, active users, or recurring revenue.
Market, competition, and innovation
The market must be attractive and the differentiating proposition must be clear. ENISA penalises generic analyses, as they reflect a lack of depth and commitment.
Financial viability
If your startup has financial history
This applies to companies with more than two closed financial years and over €30,000 in annual expenses. In this case, the evaluation is predominantly quantitative.
Quantitative · 90%
10%
ENISA analyses 6 economic ratios and 5 financial ratios based on the last two closed financial years.
Quantitative block (90%)
Economic ratios
- Year-on-year sales growth
- EBITDA margin over sales. A ratio trending towards 20% indicates highly efficient management
- Net margin
- Asset turnover
- Inventory turnover
- Average collection and payment periods
Financial ratios
- Current liquidity
- Debt level
- Debt coverage
- Interest coverage
- Working capital
Qualitative block (10%)
Although it carries less weight numerically, a weak qualitative analysis can still raise doubts in the committee. ENISA usually assesses two main areas:
- Product, demand, and market: value proposition, competition, barriers to entry, growth potential, and current traction.
- Team and shareholders: founder experience, management team profile, commitment, and cap table stability.
If your startup does not have sufficient financial history
This applies to companies with fewer than two closed financial years or annual expenses below €30,000. In this case, the model changes significantly.
A third block is added: the business plan, which is analysed using the same quantitative ratios, but applied to the first two projected financial years.
1
Product, demand, and market
- Is the problem you solve real and relevant?
- Is there verifiable demand?
- What differentiates you from the competition?
- Is the market large enough to justify the loan?
2
Team and shareholders
- Previous experience of the founders in the sector
- Complementary team profiles
- Stability and commitment of the shareholders
- Absence of conflicts in the shareholding structure
3
Business plan
- Consistency between the business model and the projections
- Reasonable and justifiable growth assumptions
- Internal coherence
- Ability to scale without costs increasing disproportionately
⚠️ Common mistake: many business plans project cash flow and profit and loss statements without including the interest on the loan they are applying for. This is an error the analyst will detect immediately, and it can damage the credibility of the plan.
04
Mistakes that can damage your ENISA rating
Some of the most common reasons for rejection include:
❗ Submitting a generic ENISA business plan that is poorly connected to the financial model.
❗ Failing to demonstrate sufficient innovation, differentiation, or scalability.
❗ Presenting unrealistic financial projections.
❗ Operating in non-eligible sectors, such as real estate, finance, or weapons.
❗ Having legal or governance issues.
❗ Requesting an amount that does not match the company’s financial situation.
05
Timelines and best time to apply for ENISA
With the new FEPYME fund, ENISA operates with permanent funds and accepts applications throughout the year. The average processing time has been reduced to less than 40 days.
Even so, it is still advisable to apply during the first half of the year to avoid bottlenecks. However, the best time will always be when your company is truly ready to apply.
Also, take into account these 👉 7 tips to maximise your chances of securing ENISA 📈
06
How can we help you at The Startup CFO?
Preparing a solid application requires financial expertise, strategy, and flawless documentation. At The Startup CFO, we manage the entire process from start to finish. Companies like Anyformat are an example of the kind of work we do.
We offer a complete service and can help you:
- Analyse the company’s eligibility.
- Structure and validate the financial plan.
- Review the amount requested.
- Prepare or improve the ENISA business plan.
- Align the financial model, narrative, and use of funds.
- Anticipate potential objections from the analyst.
- And even design an alternative financing strategy if ENISA is not the best option at that stage.
Good preparation can make the difference between approval and rejection. We take care of the process so you can focus on what matters most: growing your business.
Book a call with us or fill in our contact form, and we will get back to you as soon as possible.
