EIC STEP Scale-up Defence

The EU is investing directly in defence companies for the first time

There are also opportunities at European level for critical technologies and strategic projects. In this short series, I will introduce you to two calls for proposals from the European Innovation Council (EIC) via the STEP platform. I’ll start with the one that has the earlier deadline – 28 October 2026.

Over the past two years, defence has moved from the fringes of European programmes to their very centre. At the end of 2025, the EU approved the so-called ‘defence mini-omnibus’, which amended the rules of several programmes, including Horizon Europe and the STEP platform. On this basis, the European Innovation Council (EIC) opened up to defence and dual-use technologies in June 2026.

The result is the EIC STEP Scale-up Defence call for proposals. According to the European Commission, this marks the first time ever that an EU programme has invested directly in the capital of defence companies. European Commissioner Ekaterina Zaharieva summed it up as follows: ‘The EIC was created to take risks, and we must also take risks when it comes to the technologies that protect us.’

What is the EIC STEP Scale-up Defence?

The principle is the same as for the civilian STEP Scale-up call, which I will discuss in my next article. It is not a grant, but a direct equity investment by the EIC Fund of between €10 million and €30 million, through which the EU acts as a co-investor in a major funding round. The budget for 2026 is €100 million, so only a few companies will receive support. The difference lies in the focus. The call is aimed at technologies that serve primarily defence purposes. The EIC specifically lists ten priority areas:

  • air and missile defence,
  • artillery and precision strikes, missiles and munitions,
  • drones and anti-drone systems,
  • cyber, AI and electronic warfare,
  • strategic support capabilities and military mobility,
  • land warfare, maritime operations and military medicine.

Dual-use technologies, which are primarily used in the civilian sector, fall under the standard STEP Scale-up programme, and companies must choose only one of the two calls.

Who can apply?

A start-up, SME or small mid-cap company with fewer than 500 employees – based in the EU, in an EEA country associated with Horizon Europe, or in Ukraine. An application may also be submitted on behalf of the company by its investor.

There are two key differences compared to the civilian version:

  • Control from third countries: companies controlled by a country outside the EU, the EEA or Ukraine are excluded unless they provide guarantees approved in accordance with national procedures. The application therefore includes a self-assessment of the ownership structure.
  • Market interest: the application must also include letters of intent demonstrating interest in the product.

The financial condition remains the same. The company must be preparing a funding round of EUR 50–150 million and have a commitment from a qualified investor for at least 20 per cent of the round.

What needs to be prepared?

  • a business plan (max. 50 pages) and a pitch deck (max. 15 pages),
  • an investor’s pre-commitment and a financial plan,
  • a freedom-to-operate analysis and CVs of key personnel,
  • self-assessment of third-country controls and letters of intent.

The assessment process is the same as for the civilian version: eligibility check, an invitation to an interview with the panel within 4–6 weeks, and a result within two weeks. Decisions are expected in early 2027.

It’s worthwhile even without investment

Companies that meet the evaluation criteria will be awarded the STEP Seal. This facilitates access to further EU funding and fast-track access to the acceleration services of the EUDIS defence innovation scheme. Support from the EIC can be combined with the European Defence Fund (EDF) or the EDIP programme, provided that the same costs are not funded twice.

Who it is suitable for and when to apply

The EIC STEP Scale-up Defence programme is designed for defence companies that are no longer in the development phase but are scaling up production and preparing for a major investment round. For such companies, this represents a new and, as yet, unique opportunity: European capital in the tens of millions of euros, whilst also sending a strong signal to other investors who have long shunned the defence sector.

Czech companies have a lot to offer in this sector. However, the call has a single deadline – 28 October 2026 – and a limited budget, so anyone with an investor and their documentation ready should not delay. For others, this is a signal that defence will remain among the EU’s priorities in the coming years, and it is wise to start preparing now.

In the next article, we’ll look at the civilian EIC STEP Scale-up programme for digital, clean and biotechnologies.

Are you considering whether this scheme might suit your company? Drop me a line; I’d be happy to go through the conditions and the application process with you.