EIC opens STEP Scale‑Up: €300m in 2025 for €10–30m equity deals to scale strategic deep tech in Europe

Brussels, November 26th 2024

Summary

›The European Innovation Council (EIC) opened the STEP Scale‑Up call offering €300 million in 2025 for equity investments of €10–30 million per company.
›The facility aims to catalyse larger funding rounds of roughly €50–150 million by leveraging private co‑investment and awarding a STEP Seal to threshold‑passing projects.
›Eligible applicants are SMEs or small mid‑caps (up to 499 employees) established in EU Member States or Horizon Europe associated countries; investors may apply on behalf of companies.
›Applications are continuous through the Funding & Tenders Portal with batched evaluation and a jury interview stage; additional safeguards and eligibility checks address strategic and ownership concerns.
›The programme is embedded in the STEP platform and managed by the EIC Fund alongside Business Acceleration Services, but raises governance, crowding‑in and market distortion questions that applicants should evaluate.

What the STEP Scale‑Up call is and what it offers

On 26 November 2024 the European Innovation Council and its implementing agency opened the EIC STEP Scale‑Up call. The instrument is part of the Strategic Technologies for Europe Platform (STEP) and is implemented through the EIC Fund. For 2025 the facility is budgeted at €300 million with an indicative growth to €900 million across 2025–2027. It is structured as equity‑only investments targeted at companies that need major scale‑up capital rounds to bring strategic technologies to market and reduce the Union's strategic dependencies.

Financial terms and target

The STEP Scale‑Up call provides equity investments through the EIC Fund in amounts from a minimum of €10 million to a maximum of €30 million per company. The design assumes each EIC investment will leverage private co‑investment to reach a total target financing round typically in the €50–150 million range. Investments are equity only; there is no grant component in this call.

Feature	Requirement / Value	Notes
2025 budget	€300 million	Indicative growth to €900 million for 2025–2027
Investment size (EIC Fund)	€10–30 million	Equity only
Target total round	€50–150 million	EIC expects co‑investment to achieve this
Applicant type	SME or small mid‑cap (≤499 employees)	Established in EU Member State or Horizon Europe Associated Country
Pre‑commitment requirement	Qualified investor covering ≥20% of target round	Pre‑commitment must be uninvested at date of letter in Defence call variants
Application route	Funding & Tenders Portal	Continuous submission; batching approx. every 3 months
Evaluation	Remote evaluation + jury interview	Interview by up to six jurors; results ~2 weeks after interview week

Who can apply and what you must show

Eligible applicants are single SMEs or small mid‑caps (up to 499 employees) incorporated in an EU Member State or a Horizon Europe associated country. An investor may submit a proposal on behalf of an eligible company provided a prior agreement exists. The call targets companies that are raising large financing rounds and therefore requires evidence of initial market interest in the form of a pre‑commitment from a qualified investor representing at least 20 percent of the total target funding round.

Pre‑commitment:A formal written pre‑commitment from a qualified investor is required. The document must show the investor’s intention to participate for at least 20 percent of the larger funding round the company seeks to assemble. The round itself should normally be in the €50–150 million range so the pre‑commitment represents material private interest that the EIC investment is intended to catalyse.

Eligible technologies and STEP scope:The call focuses on strategic technology areas defined under STEP: advanced digital and deep tech (including semiconductors, quantum, AI, robotics), clean and resource efficient technologies including net‑zero solutions, and biotechnologies. The Regulation and Guidance Note implement a criticality test: a technology must either introduce a novel, high‑value element to the internal market or help reduce strategic dependencies.

Application process and required documentation

Applications are submitted at any time through the Funding & Tenders Portal. Submissions are batched approximately every three months; urgent cases may be batched faster. Admissible proposals that pass initial checks are invited for a remote jury interview approximately 4–6 weeks after the last batching. A jury of up to six members assesses the company during the interview. Results are typically communicated about two weeks after the interview week.

Documents applicants should prepare:A full business plan (up to 50 pages), a 15‑page pitch deck to use in the jury, a pre‑commitment letter from a qualified investor (official template provided), a financial plan and agreement document, a freedom‑to‑operate analysis or a short explanatory note if unavailable, CVs of key personnel, and other supporting materials such as letters of intent. The Application Form and templates are available in the Portal submission system.

STEP Seal, Business Acceleration Services and follow‑on support

STEP Seal:Projects and proposals that pass the evaluation thresholds are awarded a STEP Seal regardless of whether they receive EIC funding. The Seal is a quality label intended to ease access to complementary financing sources and public support. Holders also gain privileged access to EIC Business Acceleration Services (BAS).

EIC Business Acceleration Services (BAS):EIC BAS offers coaching, investor readiness support, access to corporates and procurement buyers, trade fair exposure, and internationalisation programmes. Seal holders and EIC awardees can access tailored services to help turn investment into commercial scaling. The EIC positions BAS as an essential complement to capital.

Who manages the money and what safeguards exist

The equity investments are managed by the EIC Fund. The EIC Fund is the venture investing arm embedded in the EIC governance architecture and acts together with the European Investment Bank as investment adviser and other appointed fund managers and contractors for due diligence, valuation, and operational tasks. Public actors involved in investment decisions include the EIC Fund Board and advisory bodies. Operational partners named in EIC documentation include the EIB, Alter Domus and third party dealflow and investor‑matching platforms.

Economic security and ownership safeguards:Given the strategic remit, recipients must not be directly or indirectly controlled by non‑associated third countries in ways that would threaten EU strategic interests. Investment agreements can include specific safeguards to protect IP, control, and critical assets within the EU. The STEP Regulation and EIC Work Programme set out control and screening rules that applicants must satisfy as part of eligibility and contracting.

Context and rationale — and why to be cautious

The STEP Scale‑Up facility addresses a recognised funding gap for capital‑intensive deep tech scaling in Europe. Large rounds for semiconductors, quantum computing, advanced manufacturing, and industrial biotech often require patient capital and strategic co‑investors. The EIC Fund aims to crowd in private capital by acting as an anchor investor and by coupling investment with EIC branding and services.

This intervention is coherent with broader EU policy drives including the Chips Act, Net‑Zero Industry Act and other STEP initiatives. It also responds to political priorities around technological sovereignty and industrial resilience. The facility expands public involvement in late‑stage private financing where market failures or strategic risks exist.

But this model brings trade‑offs. Public equity in private companies can distort competition if not carefully managed. Ensuring value, jobs and IP remain in Europe while attracting leading private partners is complex. The pre‑commitment requirement screens for investor interest but can exclude promising firms in ecosystems without large local investors. The STEP Seal helps, but conversion from label to capital remains dependent on investor appetite and credible de‑risking.

Practical risks for applicants:Applicants should assess dilution, terms attached to public equity, exit horizons and governance implications. The EIC Fund typically takes minority stakes and aims for follow‑on participation and exits within a long horizon. But legal and contractual safeguards to protect EU interests may impose constraints that affect future fundraising or strategic options.

Application checklist and evaluation tips

Prepare a concise but complete dossier. The jury will focus on technology criticality, commercial potential, investor interest, team strength, IP position, and freedom to operate. Use the application templates from the Funding & Tenders Portal and the STEP guidance note. If you lack a formal FTO, explain why and provide mitigation measures. Secure robust evidence for the pre‑commitment and be ready to explain how the EIC equity will catalyse the full round.

Item	Why it matters	Practical note
Business plan (≤50 pages)	Explains route to market and use of proceeds	Be specific on milestones and KPIs
Pitch deck (≤15 pages)	Used in jury interview	Keep for a 10–12 minute structured presentation
Investor pre‑commitment (≥20%)	Proof of market validation and leverage	Must come from a qualified investor; template available
Freedom to operate (FTO)	Shows IP freedom or risks	If missing, upload a 2‑page explanatory note
Financial plan	Required for valuation and structuring	Use EIC templates where provided
CVs of key personnel	Shows team capability	Link to LinkedIn profiles where relevant

How STEP fits into the EU innovation toolbox

STEP is a cross‑programme platform that aggregates funding and policy measures across EU instruments to support strategic technologies. The EIC STEP Scale‑Up sits alongside other instruments: the EIC Accelerator (smaller equity or blended investments), the Scaleup Europe Fund (a separate late‑stage growth vehicle), national programmes, Cohesion Policy funds and InvestEU instruments. The objective is to provide a spectrum of support from research to large scale manufacturing and to reduce critical dependencies in areas the Commission identifies as strategic.

Trusted Investor Network and crowding in:The EIC operates a Trusted Investor Network to encourage co‑investment by selected institutional and venture investors. The declared aim is to mobilise private capital alongside public funds. For companies, a strong pitch to this network can make the difference between a catalytic EIC cheque and a marginal one.

Practical next steps and resources

If you are considering applying: review the EIC Work Programme, the STEP Guidance Note and the call documents on the Funding & Tenders Portal. Use your National Contact Points and the EIC Business Acceleration Services to prepare investor materials and coaches for the Step 2 application. Expect scrutiny on ownership, IP and strategic resilience. If successful you will enter a blended journey combining investment, EIC BAS support and continued investor engagement.

Where to apply and find templates:Submit via the Funding & Tenders Portal. Application templates, pre‑commitment forms and the STEP application guidance are published on the Portal and on the EIC website. National Contact Points and the Enterprise Europe Network are available to advise applicants.

Bottom line

STEP Scale‑Up is a significant public effort to close Europe’s late‑stage deep tech funding gap by pairing sizeable equity checks with acceleration services and a signalling label. It will help some high‑risk strategic ventures scale within Europe. The initiative also increases public exposure to private venture risk and introduces new public policy conditionality into corporate financing. Prospective applicants should weigh the upside of catalytic public equity and EIC business support against governance constraints, exit expectations and the operational realities of assembling very large follow‑on rounds.