EIC STEP Scale Up makes first equity investments in IQM and Zadient as Europe pushes to close late stage deep tech gap
- ›The EIC Fund has completed its first two equity investments under the EIC STEP Scale Up scheme in IQM Quantum Computers and Zadient Technologies.
- ›The STEP Scale Up initiative has a budget of EUR 300 million in 2025 and the same amount planned for 2026 and remains continuously open with quarterly evaluations.
- ›IQM plans aggressive scaling of superconducting quantum processors while Zadient will use EIC support to expand silicon carbide production capacity.
- ›The move targets a recognised financing gap for deep tech scale ups in Europe and advances the EU agenda on strategic technologies and reduced dependencies.
- ›Key details such as transaction sizes and investment terms were not disclosed in the announcement and significant technical and commercial challenges remain.
EIC STEP Scale Up makes first equity investments in IQM and Zadient
The European Innovation Council Fund has completed its first two equity investments under the EIC STEP Scale Up scheme. The beneficiaries named in the official announcement are IQM Quantum Computers of Finland and Zadient Technologies of France. The investments mark an inaugural deployment under a programme intended to provide larger, later stage support for strategic deep technologies in Europe.
Who received the first investments and what they say
What the EIC STEP Scale Up call is and how it fits broader EU strategy
The EIC STEP Scale Up call had a budget of €300 million for 2025 and carries the same budget for 2026 according to the announcement. The purpose is to supply larger investments to companies developing strategic technologies to accelerate market entry and to reduce strategic dependencies. The initiative is positioned to fill a known funding gap for deep tech companies at scale in Europe that often struggle to attract late stage capital because of long time to market and high capital intensity.
How the scheme operates and practical details
The STEP Scale Up call is continuously open on the EU Funding and Tenders portal. Evaluation sessions take place every quarter. The EIC published specific batching dates for 2026 which the announcement lists as 11 February, 6 May, 9 September and 25 November. The EIC Fund manages the equity investments, while the European Innovation Council and SMEs Executive Agency implements programme activities and communications.
| Company | Headquarters | Technology focus | Stated use of EIC investment | Key practical challenges and notes |
| IQM Quantum Computers | Finland | Superconducting quantum processors | Accelerate growth and scale from thousands to millions of qubits by 2030 | Scaling qubits requires breakthroughs in error correction, control electronics, cryogenics and manufacturing scale. No financial terms disclosed. |
| Zadient Technologies | France | Silicon carbide semiconductor production process | Increase production capacity and speed transition to full commercial operations | Scaling SiC production is capital intensive and requires coordination across substrate, wafer fab and device ecosystems. Aims to reduce European supply dependencies. |
Where this fits in the innovation financing landscape
European policymakers have emphasised strategic autonomy for key technologies and a need to correct underinvestment in capital intensive, long horizon deep tech. The EIC Fund is one of the EU instruments designed to bridge the gap between early grant or seed funding and private late stage venture capital. The EIC often highlights leverage achieved by private co-investors with its investments. Public communications from the EIC indicate that historically the EIC Fund mobilises private co-investment by multiple euros for every euro of public investment. Those leverage ratios are important to monitor but vary by deal and sector and are not guaranteed for each transaction.
Questions and risks that remain
The announcement is a milestone for the STEP Scale Up programme, but it leaves several open questions. The EIC did not publish the investment amounts or the equity stakes acquired. For IQM the goal of moving from thousands to millions of qubits by 2030 is technically bold and will require continued R and D, large capital commitments and an ecosystem for manufacturing and integration. For Zadient the claim to become a sovereign supplier of silicon carbide in Europe addresses real strategic vulnerability but will require resolving upstream supply issues for substrates and downstream device manufacturing at scale. Both sectors face global competition and high capital intensity.
What to watch next
Observers should look for more granular information about the transactions including amounts and conditions, subsequent co-investment from private partners, concrete industrial milestones such as pilot production lines for silicon carbide or demonstration of error corrected qubits for quantum processors and the pace of job creation and supply chain localisation. The STEP Scale Up call remains open and evaluation quarters in 2026 provide clear submission windows for other companies seeking similar support. How this initial pair of investments performs will shape expectations for follow on deployments under the programme.
The news is significant in policy terms because it converts the STEP Scale Up budget into executable investments. It is also a reminder that strategic industrial outcomes depend on sustained capital, realistic technical milestones and strong private sector participation. The EIC and EISMEA will have to balance demand against rigorous selection and monitoring if the scheme is to deliver durable reductions in Europe’s technological dependencies.