FAQs - EIC Strategic Technologies for Europe Platform (STEP) Scale Up Defence Call

The budget for the STEP Scale Up Defence call in 2026 is EUR 100 million. Selected proposals will receive equity-only investment ranging from EUR 10 million to EUR 30 million, designed to catalyse at least 3-5 times the EIC investment in major funding rounds, in the range of EUR 50-150 million or more. 

Depending on the quality of the proposals received, a minimum of 3 and a maximum of 10 companies will be selected.

The EIC STEP Scale Up Defence call aims at supporting companies developing and commercialising game-changing critical defence technologies in Europe. Any of the 11 priority areas can be equally relevant for this objective. 

Each eligible proposal will be evaluated on its own merits, based on the award criteria of excellence, impact and level of risk and the specific sub-criteria described in the amended EIC work programme 2026. 

A portfolio approach can only be built in the long term. Given the available budget and the ticket size for equity-only investment, it is expected that in 2026 the EIC will select the best proposals regardless of the priority areas. Nonetheless, where appropriate, the selection will take into consideration a broad coverage of the 11 priority areas.

The EIC STEP Scale Up Defence call is the right instrument for companies looking to raise a major funding round between €50-150 M to scale up rapidly and become a leading European defence technology company. 

If you develop technologies purely for defence purposes, your proposal under the STEP Scale Up Defence call must align with the priority areas defined in the second STEP Guidance Note , which include as stated before: 

• Air and missile defence 
• Artillery & precision strike 
• Missiles & ammunition 
• Drones & counter-drones 
• Strategic enablers 
• Cyber, AI & electronic warfare 
• Military mobility 
• Ground combat 
• Maritime 
• Air combat 
• Medical (incl. countermeasures) 

If your company develops and commercialises strategic technologies in digital and deep tech, cleantech or biotech for civil or dual-use purposes (hence, not for purely defence purposes), the regular STEP Scale Up call provides significant funding to fuel groundbreaking innovation propelling Europe’s economic, industrial and technological competitiveness. Your proposal under the regular STEP Scale Up call must align with the following priority areas:

• Digital and deep tech innovations 
• Clean and resource-efficient technologies 
• Biotechnologies

Applications with a dual use presenting a credible business case in both the civilian and defence markets are eligible under the regular STEP Scale up call.

To be eligible under the EIC STEP Scale Up Defence call, applicants must aim at defence technology breakthrough, with their proposed products, technologies or services serving primarily defence applications. Applicants will be evaluated against defence-specific sub-criteria. For example, they need to demonstrate credible traction with defence end-users on a realistic pathway to adoption and scale-up within the European defence ecosystem.

Solutions with predominantly civilian or dual-use applications should refer to the general EIC STEP Scale Up call. Under this call, applicants can – but are not obliged to – demonstrate larger market opportunities deriving from existing demand from both civilian and defence end-users. However, the award criteria are not defence-specific.

Dual-use innovation in the context of EIC calls means an innovation that demonstrates a credible business case addressing demand from both civilian markets and the defence market (including, in particular, procurement by defence market buyers).

Applications for dual-use innovation will be assessed against the same set of criteria and do not receive preferential treatment compared to purely civilian innovations. Where relevant, applicants can demonstrate that their technology offers market opportunities in both civil and defence markets. 

The main change compared to the past is that there is no longer an exclusive focus on civil applications. Dual-use applications become therefore eligible.

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   For the purposes of this definition, procurement by civil-security buyers (e.g. police, border management, civil protection, civil defence in the civil-protection sense) constitutes a civilian application and does not, on its own, establish a dual-use business case.

The European Defence Fund (EDF) set out by Regulation (EU) 2021/697 supports collaborative research and development of defence products and technologies. It finances projects with consortia of at least three eligible legal entities established in three different Member States or associated countries.

Small or medium-sized enterprises (SMEs), start-ups and some small mid-cap enterprises operating within the defence sector face higher barriers for access to finance for scale-up support in the form of direct equity investment. This form of funding is not available under existing defence-focused funding instruments, in particular the EDF and the Defence Equity Facility deployed under InvestEU. 

The EIC STEP Scale Up Defence call is therefore the only instrument currently available within the EU funding programmes to offer direct equity investments for innovators in critical defence technologies. As such, it offers necessary support to promising legal entities active in the defence sector, while ensuring complementarity with other existing Union instruments. 

The EU defence funding instruments are designed to support different stages of the defence innovation and industrial lifecycle and offer complementary EU funding support. None of them provide direct equity investment, like the EIC STEP Defence call. The European Defence Fund (EDF) supports collaborative defence research and development, helping companies and consortia develop new technologies and capabilities. The Act in Support of Ammunition Production (ASAP) and the European Defence Industry Programme (EDIP) focus more on industrial capacity, production readiness, supply-chain resilience, and scaling defence manufacturing. Meanwhile, the European Defence Industry Reinforcement through common Procurement Act (EDIRPA) encourages joint procurement by Member States, creating market opportunities for companies whose technologies are ready for deployment.

A company may benefit from more than one of these instruments, either sequentially or in parallel, provided that the same costs are not financed twice. For example, a company could receive European Defence Fund (EDF) support to develop a new technology, obtain STEP Scale Up funding to accelerate commercial growth, participate in an Act in Support of Ammunition Production (ASAP) or European Defence Industry Programme (EDIP) project to expand production capacity, and ultimately supply products acquired through a European Defence Industry Reinforcement through common Procurement Act (EDIRPA)-supported joint procurement initiative. The key principle is that each funding source must support distinct activities or cost categories, ensuring complementarity and compliance with EU rules on double funding.

The STEP Scale Up Defence Call provides equity-only EIC investments between EUR 10 million and EUR 30 million to the selected applications. This investment is designed to catalyse major funding rounds in the range of EUR 50 to 150 million or more, leveraging at least 3-5 times or more, the EIC investment. Applicants must meet the eligibility requirement that at least 20% of the total funding round is pre-committed by a single qualified investor.  

Example: A European start-up developing a breakthrough technology in a Defence strategic area (such as drones) needs to raise in total EUR 100 million to scale up production and expand into global markets. 

The applicant secures a EUR 20 million pre-commitment from a venture capital fund before submitting the proposal, therefore meeting the eligibility requirement that at least 20% of the total funding round is committed by a single qualified investor. 

The company applies successfully to the EIC STEP Scale Up Defence call and is selected for a potential investment of EUR 20 million from the EIC Fund (STEP Scale Up Defence investment). 

The EIC Fund works with the company and the single qualified investor to help attract additional investors to complete the EUR 100 million funding round. Other investors contribute EUR 60 million, completing the total funding requirement.

The application of the Export Control Regulation is independent from the source of funding. Any company in Europe dealing with dual-use items listed in the Export Control Regulation is subject to compliance with the export control rules. The EIC Fund can invest in companies whose products are subject to export control: this will not affect the general principle that the responsibility for compliance lies with the company.

Only companies established in EU Member States, in Ukraine, or in country that is member of the European Economic Area (EEA) associated to Horizon Europe are eligible. 

Should the applicant consider to be directly or indirectly controlled by a third country other than Ukraine or an EEA member associated to Horizon Europe or by legal entities of such a third country, the applicant should carry out the self-assessment to determine whether they are indeed directly or indirectly controlled. You can find the self-assessment here.

If applicants find this is the case, then applicants should submit guarantees in accordance with the national procedures of the Member State or the EEA member associated to Horizon Europe in which the legal entity is established. 

Only guarantees issued by Member State or the EEA member associated to Horizon Europe  (Ministry of Defence) can be accepted. 

Guaranteed for entities established in Ukraine and subject to direct or indirect third country control are not accepted.

Besides financial investment, selected companies benefit from Business Acceleration Services, which offer tailored support, networking opportunities, and access to expertise and markets to further scale their innovation. Additional support is as well a fast-track access to EUDIS Business Accelerator.

Successful applicants also receive a Sovereignty (STEP) Seal, facilitating access to additional EU programmes and funding sources.

The evaluation process for the EIC STEP Scale Up Defence call involves several steps: 

1. Proposal Submission: 

Applicants submit a full proposal (maximum 50 pages), including a full business plan, pitch-deck (maximum 15 pages) in pdf format (this version will be presented to the jury if invited to interview), a pre-commitment from a single qualified investor (according to the official template), a financial plan, results of the freedom to operate (FTO) analysis, and CVs of key personnel. 

If there is a risk that the company may be directly or indirectly controlled by a third country other than Ukraine or an EEA member associated to Horizon Europe or by legal entities of such a third country, the applicant shall carry out a self-assessment.

In case of direct or indirect control, applicants should submit guarantees at the time application. The guarantees shall follow the official call template and must provide assurances that support for  legal entity would not contravene the security and defence interests of the Union and its Member States, as established in the framework of the common foreign and security policy pursuant to Title V of the TEU, including respect for the principle of good neighbourly relations. If the applicant fails to provide this assurance, this leads to disqualification.

The guarantees must include adequate measures pursuant to screenings, as defined in Article 2, point (3), of Regulation (EU) 2019/452 of the European Parliament and of the Council.Please note that if an applicant have provided guarantees for any EDF, ASAP, EDIRPA (or EDIP) applications, the applicant should state this precisely In addition, the guarantees have to be approved in accordance with the national procedures of the Member State or the EEA member associated to Horizon Europe in which the legal entity is established.  After this step, the guarantees must then be made available to the Commission in due time as per the call requirements.

2. Admissibility and eligibility Checks: 

The proposal is assessed to ensure it meets the admissibility and eligibility criteria, including alignment with the EIC STEP Scale Up Defence priority areas, the requirement for a pre-commitment by a single qualified investor, and the availability of a valid guarantee (if this is required).  

A single qualified Investor is an investor — public or private — with demonstrable know-how and experience in the relevant market, technology and jurisdiction, and which has been subject to KYC/AML (Know Your Customer/ Anti-Money Laundering) screening and not considered high-risk. In case of high risk, such an investor can be exceptionally considered qualified if duly justified to protect against risks to economic security. 

3. Jury Interview: 

If the proposal meets the eligibility requirements, the applicant is invited to an in-person interview with a Jury of up to six experts. The interview will focus on various aspects of the proposal, including technological feasibility, market potential, and scale-up strategy. 

4. Evaluation Criteria: 

Proposals are assessed based on three key criteria: 

✓ Excellence: Innovation — defence technology breakthrough; Technological feasibility & readiness; Intellectual property. 

✓ Impact: Market opportunity; Business model; STEP Defence Impact. 

✓ Level of risk, implementation, and need for Union support: Team capability; Risk level of investment; Investment leverage; Defence-specific risk management. 

The applicant must demonstrate a credible commitment and concrete ability to engage with the EU defence innovation ecosystems. For example, this could be demonstrated by providing evidence or a concrete plan for, participation in relevant EU or NATO-based defence programmes (e.g., EDF, EDIP, PESCO, SAFE, DIANA or NATO Innovation Fund).

Another example could be to demonstrate market uptake (e.g. letters of intent covering potential contracts and, public procurement)  from key defence industry players, both private and public.

5. Decision and Follow-up: 

After the interview, applicants are informed of the decision within approximately two to three weeks after the week of interviews have finalised. The Jury may provide observations for consideration by the EIC Fund regarding the investment amount or other considerations for the investment decision or management. Accordingly, the Jury may recommend a different investment amount than requested by the applicant in line with the call’s requirements. The relevant information from the successful proposal will be passed to the investment adviser for the EIC Fund, to proceed with the detailed due diligence and, subject to a positive due diligence and subsequent EIC Fund Investment Committee decision, the investment agreement. Proposals selected for funding as well as proposals meeting the evaluation criteria, but which do not receive immediate investment due to budget limitations will be awarded the Sovereignty (or STEP) Seal. 

6. Investment Process: 

Following a successful interview and due diligence, the EIC Fund’s Investment Committee will make a final investment decision, ensuring that the investment aligns with the company's needs and the EIC STEP Defence’s objectives. 

Investors who have not undergone a KYC by the EIC Fund or EIF may also provide pre-commitments, but this will be subject to the completion of a KYC during the eligibility checks. The pre-committed investor may be an existing investor in the company and does not necessarily need to be the investor who intends to lead the investment. 

In cases where the pre-committed investor is not the lead investor, the EIC Fund investment will also normally be contingent on the participation of a qualified lead investor, as defined in the EIC Investment Guidelines available on the EIC website.

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    Regulation (EU) 2019/452 of the European Parliament and of the Council of 19 March 2019 establishing a framework for the screening of foreign direct investments into the Union (OJ L 79 I, 21.3.2019, p. 1, ELI: http://data.europa.eu/eli/reg/2019/452/oj).’.

Experts will be selected on the basis of their expertise in critical defence technologies contributing to Europe’s innovation landscape. Experts will assess companies on the basis of their capacity to leverage direct equity investments to scale up disruptive innovations in defence. 

Experts will have a valid Personal Security Clearance (PSC) and are bound by strict confidentiality rules. Selection will be made based on professional expertise and other factors (gender balance, rotation).

Following the interview, the investment process (including due diligence) typically ranges from 2 to 6 months, depending on the specificities of the case, readiness to fund raise, among others.

Classified information must not under any circumstances be submitted online through the EU Funding & Tenders Portal.

If in your proposal you wish to include any supporting documentation as classified information as governed by Commission Decision (EU, Euratom) 2015/444, you must contact EISMEA at least 30 working days before the call closing date in order to arrange the delivery of the classified documents. Requests submitted in less than 30 working days before the call closure will not be processed.  

Only documents classified as EU RESTRICTED, EU CONFIDENTIAL or EU SECRET may be accepted. Documents classified as EU TOP SECRET will not be accepted by the Agency.

When submitting the proposal via the EU Funding & Tenders portal it is the applicant’s responsibility to ensure that no classified documents are submitted through the portal. Nevertheless, applicants could make general reference to the existence of a classified document submitted separately. . 

 As in any Horizon Europe call, the applicants should consider the maximum page limits of the proposal’s documents. For example, the maximum length for the proposal part B is 50 pages, the pitch deck’s limit is 15 slides, etc. Proposals that feature classified information must respect the total page limit (the total amount of pages summing up the classified and non-classified information shall no go over the 50 pages limit). . 

Applicants who intend to submit classified information as part of their proposal must complete the EUSurvey questionnaire available at this link for the complete process.

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   See Commission Decision 2015/444/EU, Euratom of 13 March 2015 on the security rules for protecting EU classified information (OJ L 72, 17.3.2015, p. 53).

Specific safeguards may be introduced in the investment agreement, in accordance with the EIC Investment Guidelines (at least one safeguard measure) and the provisions set out in the Introduction (Economic Security). 

Such safeguards may be tailored to the specific technology and risk profile of the company and may include provisions related to ownership changes, governance, intellectual property, location of activities, or supply-chain security.

For proposals submitted under the EIC STEP Scale Up Defence call additional ethics requirements will apply, in particular regarding the respect of international humanitarian law and the use of artificial intelligence-based systems which must ensure that AI-enabled functions related to weapon systems do not render weapons without possibility for meaningful human control.

Proposals can be submitted at any time. Proposals will be batched for evaluation at 17:00:00 Brussels time on the following date: 28/10/2026

An investor can help the company prepare the application. However, the proposal must be submitted using the PIC (unique identifier) of the applicant SME or small mid cap. The investment agreement will be signed with the investee company.

The EIC STEP Defence Scale Up call applies limitations on the number of unsuccessful submissions of the same/improved proposal by the same legal entity. 

As from 1 April 2026, after three unsuccessful submissions of the same/improved proposal by the same legal entity to the EIC STEP Scale Up or STEP Defence call which can be at any stage of the process (eligibility check, interviews), an applicant may not apply again to the EIC STEP Scale Up of STEP Defence call under the Horizon Europe Framework Programme.

Both for the EIC STEP ScaleUp Call, EIC STEP ScaleUp Defence Call and the EIC Accelerator Call, the applicant must not be in a situation of concurrent submission. Concurrent submission exists when an applicant submits more than one proposal for evaluation to any EIC Accelerator call (including the EIC STEP Scale Up Call or EIC STEP Scale Up Defence Call) before the evaluation feedback has been provided for the earlier submission. If a case of concurrent submission is identified, only the proposal submitted last (before the deadline) will be taken into consideration, and it will be assessed according to the merits and evaluation criteria of its respective call (EIC Accelerator, EIC STEP Scale Up or EIC STEP Scale Up Defence). 

Yes, a company may apply to STEP Defence, STEP Scale Up or Accelerator at different times, as long as they are not in a concurrent submission situation (a submission of one proposal before the evaluation results of the previous submission is received), and provided that each application relates to a different eligible project which meets the specific eligibility criteria of the respective call at the time of submission. In addition, there should not be double funding of the same activities. 

The Sovereignty (or STEP) Seal will be awarded irrespective of whether your proposal is retained for funding (to facilitate access to complementary funding sources) or not (to facilitate access to alternative funding sources) – provided that your project meets the evaluation thresholds set out in the call, but do not receive immediate investment due to budget limitations. 

The Sovereignty (STEP) Seal is a quality label awarded to projects that align with STEP Defence objectives and meet the minimum quality criteria set by the relevant calls for proposals. The Seal makes it easier for your project to receive combined or cumulative funding from various EU budgetary instruments, as well as national funding programs. 

Furthermore, projects which were awarded the Sovereignty (STEP) Seal under the EIC are eligible to receive Business Acceleration Services. 

The sovereignty (STEP) seal aims to facilitate combined and cumulative funding for projects and will be awarded to projects that meet the evaluation thresholds independent of whether the proposal was selected for funding. Hence, the seal does not guarantee EU funding for your project. However, the sovereignty (STEP) seal aims to increase chances for your project to attract alternative investments by enhancing visibility among investors and facilitating funding by national funding programs, as well as by providing you access to business acceleration services.

Applicants must disclose such information, as soon as available. The pre-commitment must be fully uninvested as of the day of the pre-commitment letter. This condition is assessed as an eligibility criterion before the interview. 

If the pre-commitment turns into an investment agreement before the date of the interview, the Jury Members will assess on a case-by-case basis whether the EIC Fund investment will still have a catalytic effect in attracting other investors within the overall investment round. 

The applicant will need to upload a pre-commitment letter using the official template provided on the Funding & Tenders Portal.

The pre-commitment must relate to funds that remain fully uninvested as of the date of the pre-commitment letter.

A signed Term Sheet related to the pre-commitment letter may be uploaded as a supporting document. However, it may only be accepted as a valid alternative to the pre-commitment letter in very exceptional cases, provided that it contains all the required elements of the official pre-commitment letter template.