EIC STEP Scale Up Defence: up to €30M for defence firms

On 1 July 2026, the European Innovation Council (EIC) opened the EIC STEP Scale Up Defence call. Because the rules name Ukraine directly, Ukrainian companies can apply on equal terms with firms from EU countries. The investment size runs from €10 to €30 million in company equity. The deadline is 28 October 2026.

This is the first time an EU funding programme invests direct equity in defence companies. The total 2026 budget is €100 million. The money goes toward scaling up work in air and missile defence, drones and counter-drones, and other critical defence technologies.

What the EIC STEP Scale Up Defence call is

The call sits inside the Strategic Technologies for Europe Platform (STEP), the EU vehicle for funding strategic technologies. So the defence track complements the civilian STEP Scale Up call, which covers digital, deep tech, clean tech and biotech. The EIC Fund manages the scheme.

Its goal is to strengthen Europe’s defence technological and industrial base and to reduce its strategic dependence on third countries. Because the EIC invests equity only, it takes a stake in the company rather than issuing a non-repayable grant. A single investment covers €10 to €30 million.

The EIC money pulls in larger private capital. Specifically, the scheme targets funding rounds of €50 to €150 million or more, where the EIC share sits at roughly a third to a fifth of the whole round. As a result, a company reaches capital that the private market alone would not provide, since defence development carries high risk.

Who can apply and why Ukraine is on the list

A single SME or small mid-cap (fewer than 500 employees) established in an EU Member State, in an EEA country associated to Horizon Europe, or in Ukraine can apply. So an investor may also submit a proposal on behalf of an eligible company.

Ukraine appears in the rules directly, next to EU Member States. Because of that, a Ukrainian defence or dual-use company applies on its own, without needing an EU partner. For a sector that has grown dozens of mature technology teams over three years of war, this opens direct access to large European capital.

A control rule applies. A company controlled directly or indirectly by an entity from a country outside the EU, EEA or Ukraine cannot take part by default. However, it may still qualify if the applicant provides the Commission with appropriate guarantees, approved under the national procedures of the country of establishment.

One more requirement covers market interest. Specifically, the company must show early interest from a single qualified investor covering at least 20% of the whole target round. So the programme looks for teams ready for a major round, not early-stage startups.

How much is invested and how the mechanism works

The minimum EIC investment is €10 million, the maximum €30 million. The format stays equity only. Because the EIC Fund enters the company as an investor and takes a stake, owners should calculate the dilution in advance.

The investor pre-commitment must cover at least 20% of the round and follow the official template from the portal. On the date of the letter, the portion matching that 20% must stay uninvested. Syndicated pre-commitments, where no single participant reaches the 20% threshold, are not accepted.

Companies that pass the evaluation threshold receive the STEP Seal. So this mark opens access to Business Acceleration Services (BAS): coaching, mentoring, a partner network and investor contacts. Because the STEP Seal goes even to companies not selected for investment, applying makes sense on its own.

How to apply and which documents you need

Companies apply through the call page on the Funding & Tenders Portal. The deadline is 28 October 2026. The topic identifier on the portal is HORIZON-EIC-2026-DEFENCE-01.

The document package is heavy, because this is an investment procedure. So the applicant prepares a full business plan with ownership and financial structure (up to 50 pages), a pitch-deck (up to 15 pages in PDF), a pre-commitment letter from a qualified investor for at least 20% of the round, a financial plan on the template, a freedom-to-operate (FTO) analysis, CVs or LinkedIn profiles of key people, and letters of intent.

A separate self-assessment covers third-country control. If the assessment shows direct or indirect control, the company submits a guarantee. For software, where FTO does not apply, a short two-page statement is enough.

After the eligibility check, the company goes to a jury interview with up to six members. The EIC notifies applicants about the interview within 4 to 6 weeks from the start of the evaluation, and the interview result arrives within 2 weeks after it.

What this means for Ukraine’s defence sector

The EIC defence track completes the picture of international funding for Ukrainian tech teams. Domestic tools such as Brave1 and Brave International cover early and mid stages, while EIC STEP Scale Up Defence opens large investment rounds for mature scale-up companies.

The EU pivot toward defence and dual-use technology has run since mid-June 2026, when the EIC first opened this field. Because Ukrainian companies gained access straight away, the coming months are worth watching closely for new defence calls and related programmes.