The EIC STEP Scale-Up is a dedicated equity investment vehicle established by the European Innovation Council (EIC) under the Horizon Europe program. Integrated into the Strategic Technologies for Europe Platform (STEP), its primary mission is to provide large-scale growth capital to enterprises commercializing breakthrough technologies on a global scale.

Unlike traditional EU funding schemes, this mechanism does not offer non-repayable grants. Support is provided through direct equity financing. Its key objective is to safeguard European technological independence and back high-potential innovations that struggle to secure sufficient capital through standard venture capital markets alone.

Key Purpose and Objectives

This initiative bridges critical funding gaps faced by high-risk, strategically important projects undergoing scale-up—a phase characterized by rapid expansion, market entry, and capacity building where private venture capital funds are often insufficient on their own.

Main objectives include:

• Accelerating strategic and critical technologies: Supporting focus areas such as digital technologies, clean technologies, and biotechnology.
• Strengthening EU technological sovereignty: Building competitiveness in sectors like quantum computing, semiconductors, defense, and dual-use technologies.
• Leveraging private investment: Encouraging major private financial backers to join large-scale funding rounds alongside public capital.

Support Structure and Financial Parameters

EIC STEP Scale-Up sets itself apart from standard calls through financial terms tailored specifically for ambitious scale-ups:

• Direct equity investments from the EIC range between €10 million and €30 million per project.
• The instrument does not cover the entire expansion independently; it acts as anchor funding within larger investment rounds (typically targeting €50 million to €150 million) to crowd in qualified private investors.
• Sovereignty Seal: Exceptional projects that meet all evaluation criteria but cannot be funded due to budgetary limits receive this quality badge, facilitating access to alternative EU funding sources.
• Business Acceleration Services (BAS): Beneficiaries gain access to executive mentoring, coaching, strategic advice, and networking opportunities with corporate clients and global partners.

Target Beneficiaries

• Rapidly growing Small and Medium-sized Enterprises (SMEs) registered in EU Member States or Horizon Europe associated countries.
• Small mid-cap companies (businesses with up to 499 employees).
• Investors, who may proactively submit applications representing an eligible startup or SME in which they plan to co-invest.

The program is not designed for early-stage ventures lacking commercial traction. Applicants must demonstrate previous investment rounds and possess a formal pre-commitment from a private investor covering at least 20% of the targeted investment round.

Key Differences from Standard Grant Schemes

• No non-repayable grants: Funding consists strictly of public equity investment in exchange for company shares.
• Commercial focus: It targets commercial scaling and supply chain security rather than basic research, prototyping, or early testing.
• Rigorous selection process: Applications require a robust business plan and undergo extensive due diligence managed directly by the EIC Fund.
• EU impact requirement: Strong emphasis is placed on keeping the strategic and technological benefits primarily within the European Union.