Key Takeaways
- • The European Innovation Council (EIC) STEP Scale-up program has allocated €300 million in 2026 for equity investments ranging from €10 million to €30 million per company, with projections to grow to €900 million across 2025–2027.
- • The STEP initiative targets strategic technology startups in digital technologies, clean and resource-efficient solutions, and biotechnologies, designed to address Europe's market gap in deep tech scale-up funding.
- • Eligible applicants are SMEs and small mid-caps (up to 499 employees) established in EU Member States or Horizon Europe Associated Countries, with requirements to demonstrate qualified investor co-investment covering at least 20% of target funding.
- • The program leverages private co-investment to achieve total funding rounds of €50 million to €150 million per company, providing STEP Seals and access to EIC Business Acceleration Services for all projects meeting evaluation thresholds.
- • Continuous submission is available through the Funding & Tenders Portal, with the scheme designed for companies seeking major funding rounds to bring strategic technologies to market and reduce European strategic dependencies.
Summary
The European Innovation Council has launched the EIC STEP Scale-up facility as a strategic response to Europe's underserved deep tech scale-up funding landscape. With a €300 million budget allocated for 2026 and projected growth to €900 million over the 2025–2027 period, the program represents a significant institutional commitment to supporting European technology innovation across critical sectors.
The investment structure offers €10 million to €30 million per portfolio company, designed to co-invest alongside private capital to achieve total investment rounds between €50 million and €150 million. This co-investment requirement ensures alignment between public funding and market-validated investor confidence. The program explicitly targets startups developing strategic technologies in digital technologies, clean and resource-efficient solutions (including net-zero initiatives), and biotechnologies—sectors identified as critical to European economic resilience and strategic autonomy.
Eligibility criteria restrict participation to SMEs and small mid-caps with up to 499 employees established within EU Member States or Horizon Europe Associated Countries. Prospective applicants must demonstrate proof of initial market interest from a qualified investor, with such investors required to commit at least 20% of the total target funding round. This gatekeeping mechanism filters for companies with demonstrated investor traction, reducing deployment risk for public capital.
Beyond direct equity investment, the EIC provides supplementary support through STEP Seals awarded to all projects passing evaluation thresholds—whether ultimately funded or unfunded—facilitating access to complementary or alternative funding sources. Recipients gain access to EIC Business Acceleration Services, providing non-capital support for scaling operations. The program operates on a continuous submission basis through the EU's Funding & Tenders Portal, allowing companies to apply throughout the funding cycle rather than within discrete windows.
This initiative functions within a broader European strategy to mobilize public and private capital for strategic technology development, addressing both the funding gap for deep tech scaling and European technological sovereignty objectives.
The investment structure offers €10 million to €30 million per portfolio company, designed to co-invest alongside private capital to achieve total investment rounds between €50 million and €150 million. This co-investment requirement ensures alignment between public funding and market-validated investor confidence. The program explicitly targets startups developing strategic technologies in digital technologies, clean and resource-efficient solutions (including net-zero initiatives), and biotechnologies—sectors identified as critical to European economic resilience and strategic autonomy.
Eligibility criteria restrict participation to SMEs and small mid-caps with up to 499 employees established within EU Member States or Horizon Europe Associated Countries. Prospective applicants must demonstrate proof of initial market interest from a qualified investor, with such investors required to commit at least 20% of the total target funding round. This gatekeeping mechanism filters for companies with demonstrated investor traction, reducing deployment risk for public capital.
Beyond direct equity investment, the EIC provides supplementary support through STEP Seals awarded to all projects passing evaluation thresholds—whether ultimately funded or unfunded—facilitating access to complementary or alternative funding sources. Recipients gain access to EIC Business Acceleration Services, providing non-capital support for scaling operations. The program operates on a continuous submission basis through the EU's Funding & Tenders Portal, allowing companies to apply throughout the funding cycle rather than within discrete windows.
This initiative functions within a broader European strategy to mobilize public and private capital for strategic technology development, addressing both the funding gap for deep tech scaling and European technological sovereignty objectives.
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