What is EIC STEP Scale Up Defence?
The EIC STEP Scale Up Defence is a dedicated investment facility of the European Innovation Council (EIC) operating under the Strategic Technologies for Europe Platform (STEP). Its primary objective is to deliver direct equity funding to innovative businesses scaling critical defense technologies.
Far from a conventional grant program, its main purpose is to bridge the capital gap for high-risk technological innovations and accelerate commercial market entry where private venture capital is insufficient.
This initiative was launched to reinforce the European defense technological and industrial base, thereby reducing strategic dependencies on suppliers outside Europe.
Key Objectives
EIC STEP Scale Up Defence acts as a financial catalyst for large-scale investment rounds typically ranging from €50 million to €150 million or more. Its main aims include:
- Supporting the scale-up and commercialization of strategic defense technologies,
- Providing direct equity investments between €10 million and €30 million per enterprise,
- Mobilizing additional private co-investors,
- Safeguarding the technological sovereignty and security of the European Union.
Typical Areas of Support
The initiative strictly targets breakthrough solutions intended for purely defense applications or dual-use (civilian and military) technologies, including:
- Air and missile defense,
- Drones and counter-drone systems,
- Cybersecurity and electronic warfare,
- Artificial intelligence (AI) and quantum technologies applied to defense,
- Advanced materials, military mobility, and robotics.
Target Audience
The mechanism primarily targets ambitious companies located in EU Member States, Horizon Europe associated countries (including EEA states), and Ukraine. Eligible entities include:
- Start-ups and highly innovative tech enterprises,
- Small and medium-sized enterprises (SMEs),
- Small mid-caps (companies employing up to 499 staff).
It is not intended for early-stage research projects. Instead, it exclusively targets companies that already possess functional technologies, a demonstrated growth path, and plans for a major capital round.
Key Differences from Standard Funding Calls
Applicants must hold a prior binding commitment from at least one qualified private co-investor covering a minimum of 20% of the total target investment round. Additionally, the program does not offer non-repayable grants, operating exclusively via equity investments. Applications can be submitted continuously, with evaluations conducted during regular assessment cycles.
