Funding Programme: EIC STEP Scale Up Defence

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The EIC STEP Scale Up Defence programme supports the scaling of game-changing technologies in the defence sector to reduce Europe's strategic dependencies.

Key Facts: EIC STEP Scale Up Defence

  • Type of Funding: Equity-only investments managed by the EIC Fund. No grant component.
  • Funding Amount: EUR 10 to 30 million EIC investment per company.
  • Target Group: Ambitious deep-tech SMEs and small mid-caps (up to 499 employees).
  • Budget: Total budget of EUR 200 million for 2026–2027.
  • 2026 Deadline: Submissions are accepted on an ongoing basis; the 2026 batch deadline is October 28, 2026 (17:00 Brussels time).

Who Can Be Funded?

The programme targets companies seeking significant growth financing that can answer "Yes" to three core questions:

  • Defence Focus: Are you developing a breakthrough innovation with a primary defence application? (Note: Predominantly civilian or dual-use projects must apply under the general EIC STEP Scale Up Call instead).
  • Criticality: Does your technology bring a cutting-edge element to the EU internal market or demonstrably reduce the Union's strategic dependencies?
  • Market Failure: Does the project carry such high financial or regulatory risks that private market investors cannot fully finance the round on their own?

Supported Technology Areas (Overview)

Projects falling within the eleven strategic STEP defence areas are supported, including:

  • Air, missile, and ground defence, artillery, and precision strike capabilities
  • Drones and counter-drone systems
  • Space technologies, cyber defence, AI, and electronic warfare
  • Military mobility, logistics, as well as maritime and air combat systems
  • Military medical technologies and CBRN defence

Special Eligibility & Participation Conditions

  • Eligible Countries: Companies must be established in the EU (e.g., Germany), Ukraine, or an associated EEA country.
  • Exclusion of Third-Country Control: Entities directly or indirectly controlled by non-EU/EEA countries are excluded. Exceptions are only possible with official, governmental guarantees from the Federal Government (or the respective country of establishment).
  • Value Creation: The company must contractually guarantee that the majority of its value creation and intellectual property (IP) remains in Europe.
  • Ethics & AI: International humanitarian law applies strictly. AI-enabled functions in weapon systems must unconditionally remain under meaningful human control.

Financing Structure

The EIC investment (EUR 10–30 million) acts as a catalyst for a much larger funding round:

  • Target Round Size: A total of EUR 50 to 150 million (or more).
  • Leverage: The EIC investment must crowd in and mobilize 3 to 5 times its amount in private capital.
  • Investor Pre-commitment: At the time of application, a firm, uninvested commitment (pre-commitment) from a single qualified investor must already be secured, covering at least 20% of the targeted total funding round.

The Application Process at a Glance

The procedure is single-stage, followed by a personal interview:

  • Digital Submission: Application via the Funding & Tenders Portal. Required documents include a Business Plan (max. 50 pages), Pitch Deck (max. 15 pages), Financial Plan, Freedom to Operate (FTO) analysis, and the official Investor Pre-commitment document.
  • Formal Pre-assessment: The European Commission reviews the STEP relevance and the investor commitment (takes approx. 4–6 weeks).
  • Jury Interview & Decision: Successful applicants are invited to an interview before a 6-member expert jury in Brussels. The final outcome (GO / NO GO) is communicated approximately two weeks later.

For more information go to eic.ec.europa.eu