The Strategic Technologies for Europe Platform (STEP) Scale-Up Programme is a pivotal new initiative under the European Innovation Council (EIC), designed to provide large-scale equity investments for deep-tech startups. With an initial €300 million budget in 2025, expanding to €900 million by 2027, the programme targets strategic sectors including digital technologies, clean energy, and biotech. By bridging the funding gap for high-potential European companies, STEP aims to reduce Europe’s reliance on non-EU technology providers and strengthen the region’s innovation ecosystem.

Background

European deep-tech startups have long faced challenges in securing growth-stage funding, particularly when scaling up beyond early-stage venture capital. Many promising EU-based companies struggle to compete with their counterparts in the US and China, where access to private capital is significantly greater. Recognising this challenge, the European Commission (EC) introduced the STEP Scale-Up Programme to provide much-needed equity investments ranging from €10 million to €30 million per company.

The programme is not only about financing—it’s about building European resilience in critical technology sectors such as semiconductors, AI, quantum computing, clean tech, and healthcare innovation.

Objectives of the STEP Programme

The primary goal of the STEP Scale-Up Programme is to enhance Europe’s technological sovereignty by supporting companies working in strategic industries. The initiative has four key objectives:

  1. Scaling Up Deep-Tech Startups: The funding gap in the EU’s venture capital landscape means that many startups struggle to grow beyond early development stages. STEP provides equity funding at a critical moment, allowing companies to expand their operations, scale production, and enter global markets.
  2. Reducing Reliance on Non-EU Technologies: Europe has become increasingly dependent on technology imports, particularly in areas like semiconductors, cloud computing, and clean energy technologies. The STEP programme seeks to reduce this dependency by supporting homegrown companies that can develop and manufacture these technologies within Europe.
  3. Attracting Private Investment: STEP requires companies to secure at least 20% of their funding from private investors, ensuring that public funds are used alongside market-driven capital. This co-investment approach helps attract venture capital firms, institutional investors, and corporate partners to Europe’s innovation ecosystem.
  4. Strengthening Europe’s Position in Global Innovation: By supporting European companies in strategic sectors, STEP aims to position the EU as a leader in emerging technologies rather than a consumer of foreign innovations.

Funding and Investment Mechanism

The STEP Scale-Up Programme operates as an equity-focused funding scheme within the EIC. Unlike traditional grant funding, STEP invests directly in companies through equity or quasi-equity instruments:

  • Equity investments range from €10 million to €30 million per company.
  • The total budget for 2025 is €300 million, with plans to expand to €900 million by 2027.

Co-Investment Requirement

To qualify for STEP funding, applicants must secure at least 20% of their funding round from a qualified private investor. This means that if a company seeks €20 million, it must first obtain €4 million from private investors before the EU steps in with additional equity support.

The STEP Seal

One unique feature of the programme is the STEP Seal, awarded to projects that pass the EIC’s rigorous evaluation process. Companies with the STEP Seal gain:

  • Access to alternative funding sources (e.g., national innovation agencies and private investors).
  • Business acceleration services to help scale internationally.
  • Increased credibility with potential co-investors.

Who Can Apply?

Startups, SMEs, and Small Mid-Caps (up to 499 employees):

  • Established within a Member State or an Associated Country.
  • An investor may submit a proposal on behalf of an eligible SME or small mid-cap as defined above.

This scheme targets companies seeking major funding rounds, requiring proof of initial market interest from a qualified investor covering at least 20% of the total target funding round.

Sectors of Focus 

  • Digital technologies (AI, semiconductors, quantum computing, cybersecurity)
  • Clean energy and sustainability solutions
  • Advanced healthcare and biotech innovations
  • Space technologies and robotics

For more detailed information on the sectors of focus, see the Guidance Note on STEP.

Application Process

The STEP Scale-Up Programme has an ongoing application process, with funding rounds every three months.

Step 1: Submission your proposal

  • a full business plan, including information on the company’s ownership and financial structure, STEP related objectives (maximum 50 pages).
  • a pitch-deck in PDF (15 pages maximum).
  • a pre-commitment from a qualified investor.
  • an ownership control declaration.
  • If your application meets the eligibility requirements, you will be invited to attend a jury interview.

You will be informed about the interview in 4-6 weeks from the start of the evaluation process.

EIC Jury Interview

  • At the interview, you will be assessed by a Jury of maximum six members.
  • You will be informed about the result of the interview in 2 weeks from the date of the interview.

Companies, irrespective of whether they are retained for funding or not, that meet all evaluation criteria will be awarded the Sovereignty Seal and gain access to Business Acceleration Services.

Furthermore, if your proposal does not meet the criteria, you will receive feedback to help improve future applications.

For the full EIC STEP Up Call, please see the EIC work programme 2025 (pages 96-105).

You can access the full EIC STEP Scale Up Call Submission Guidance here.

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