Cascade funding is a mechanism provided by some directly managed programmes, in particular (but not only) Horizon Europe. In fact, there are some calls for financial support to third parties.

This means that the consortium benefiting from that particular call is in charge of distributing grants to third entities, i.e. not part of the winning consortium, through so-called open calls.

Open calls usually aim to select SMEs and start-ups to implement some specific activities, usually studies and pilot projects, or demonstration and testing projects for new technologies, platforms or services.

How do they work?

• Financial support to third parties is provided by several calls, in particular by Horizon Europe.
• The European Commission provides funding to the winning consortium.
• The consortium, in turn, will have to publish an open call addressed to third-party entities that are not part of the consortium.
• Third parties that pass the selection process win the funding.