The European Commission has opened the first call under EIC STEP Scale Up Defence, a new funding programme designed to give European defence companies access to direct equity investment in order to scale up production and development of critical defence capabilities.
According to the European Innovation Council (EIC), small and medium-sized enterprises as well as smaller mid-cap companies in EU member states, European Economic Area (EEA) countries associated with Horizon Europe, and Ukraine may apply for between 10 and 30 million euros in direct equity investment. The total budget for the first call amounts to 100 million euros, with the aim of funding approximately ten companies.
The EIC states that this is the first time an EU-funded programme has offered direct equity investments in defence companies. The Innovation Council will co-invest in larger funding rounds, typically between 50 and 150 million euros or more.
The call covers areas including air and missile defence, artillery, ammunition, drones and counter-drone systems (C-UAS, Counter-Unmanned Aircraft Systems), cyber defence, artificial intelligence, electronic warfare, ground combat systems, naval systems, air combat systems, and medical and CBRN (Chemical, Biological, Radiological and Nuclear) related technologies. To be eligible, projects must have a primary defence purpose and either contribute “breakthrough technology” or reduce the EU’s strategic dependencies.
The application period opened on 30 June and runs until 28 October 2026.