EIC STEP Scale Up advances eight companies to EIC Fund for potential equity investments

The European Innovation Council and SMEs Executive Agency announced on 19 November 2025 that eight companies are being put forward to the EIC Fund for potential equity investments under the Strategic Technologies for Europe Platform STEP Scale Up call. The group is proposed to receive a combined €171 million, subject to the EIC Fund's investment decision and satisfactory due diligence.

Which companies were selected and why they matter

The eight companies proposed for investment span space, fusion, energy, photonics and quantum computing. Selected firms address technologies the EU labels strategic, including space situational awareness, photovoltaic materials, photonic and quantum processors, and two companies pursuing laser-driven fusion. The EIC presented the round as tackling strategic dependencies and building European scaleups in high risk, capital intensive deep tech.

The announcement does not disclose per company ticket sizes. The STEP Scale Up design envisages individual investments in the €10 million to €30 million range. The EIC specified the combined sum proposed for this cohort is €171 million and that decisions remain conditional on due diligence and investment committee approval.

Selection pipeline, STEP Seal and the wider cohort

The call attracted 51 proposals. Thirty six of those were invited to interview with independent experts. Eight met the criteria for being proposed to the EIC Fund. In addition, 21 other applicants that were assessed as excellent but could not be funded in this round because of STEP budget limits received a STEP Seal. The Seal is intended to help companies find complementary or alternative funding and to give access to EIC Business Acceleration Services.

Budget, schedule and scope

STEP Scale Up has a budget of €300 million in 2025 and plans to continue with the same budget in 2026. The call remains continuously open on the EU Funding and Tenders portal with quarterly evaluation batches. The announced batching dates for 2026 are 11 February, 6 May, 9 September and 25 November.

How the scheme fits Europe’s late stage funding gap

Europe has long struggled to finance deep tech ventures through capital intensive scale up phases. Venture capital is plentiful for earlier rounds in many ecosystems, but securing the tens to hundreds of millions needed to commercialise manufacturing, reactors, foundries or hardware platforms is harder in Europe compared to the United States. The STEP Scale Up instrument is explicitly designed to plug that gap by providing significant public equity that can be paired with private investors.

Practical next steps and governance

The eight companies have been proposed for investments. The EIC Fund will now conduct standard investment due diligence and complete internal approvals before any capital is committed. The data protection and implementation documents associated with EIC investment operations show that the Fund may rely on advisers and contractors for KYC, valuation, investor outreach and paymaster functions. Those parties are contractually bound to confidentiality and to EU data protection rules.

Risks, caveats and realistic timelines

The announcement is significant in capital terms and for the sectors represented. At the same time, there are important caveats. Public equity does not eliminate technical or market risk. Several companies in this list operate in extremely capital intensive and long timeline domains. Laser fusion has seen high profile scientific milestones but commercial power plants remain years to decades away. Quantum and photonics firms face complex scaling, manufacturing and ecosystem challenges. Biotech products such as intranasal antibody sprays must clear regulatory pathways and demonstrate real world effectiveness and manufacturability. Space surveillance and wafer manufacturing require years of operations scaling and integration with national and commercial systems.

Policy driven public equity can help de-risk and attract private capital, but the limited STEP budget means many deserving companies may be deferred. The STEP Seal helps, but seals and labels do not substitute for patient capital. Investors remain focused on revenue visibility, IP, supply chains and exit options. Governments and EU bodies will need to sustain complementary measures if Europe is to close the late stage funding gap consistently rather than episodically.

What to watch next

Key items to follow are the outcomes of the EIC Fund due diligence and the final investment decisions. Observers should watch whether private co-investors join the rounds and at what valuation levels. The 21 STEP Seal companies that were not funded in this round will be a test of whether the Seal and business acceleration services can materially improve subsequent fundraising prospects.

For company founders considering STEP, the programme remains open continuously with quarterly batching. Applicants should prepare for the multi-step evaluation process which includes a short proposal, a full proposal supported by optional coaching, and final interviews.

Useful dates and resources

The EIC and STEP web pages provide application materials, the STEP Seal dashboard and information on advisory services and national contact points. Independent coverage and investor commentary will be important to assess whether these public investments trigger broader private rounds and durable scaling of European deep tech.

Bottom line

The STEP Scale Up cohort is a deliberate attempt by the EU to back capital intensive, strategic technologies with larger public equity tickets and to use public capital to attract private co-investors. The selection of companies highlights priorities in space, energy, photonics, quantum and biotech. The ultimate test will be whether the EIC Fund completes investments, private co-investment materialises and the funded firms can navigate long development, regulatory and manufacturing pathways. The limited STEP budget means outcomes for the wider pool of strong applicants will depend on whether the Seal and acceleration services translate into tangible funding or commercial partnerships.