EIC STEP Defence: up to €30 million, within a much larger round
Ukraine is included in the new equity call. We explain the difference from a grant, the expected round size and the industrial scale-up requirement.
- Up to EUR 30m investment
- Closes 28 October 2026
Application deadline: 2026-10-28
See the call page for current conditions and closing time.
The EIC has opened direct equity investment for defence companies. On 17 June, the Commission announced a €100 million STEP Defence Scale Up call; on 1 July, the EIC announced its opening. The stated application deadline is 28 October 2026.
An individual company can receive up to €30 million. The geographical scope covers EU Member States, Horizon Europe-associated EEA countries and Ukraine, making the route relevant to Ukrainian manufacturers seeking expansion capital.
This is not a standalone grant. EIC intends to co-invest alongside other participants in substantial funding rounds, which changes how companies need to prepare.
The round exceeds the EIC contribution
EIC describes typical rounds of €50 million to €150 million or more, with total financing expected to be at least three to five times the requested EIC investment. As an illustration, a €10 million EIC request implies a €30-50 million total using those multipliers. That arithmetic is not confirmation that a particular transaction is eligible.
Management therefore needs to address the whole financing exercise, including other investors, use of proceeds, valuation and shareholder rights. The announcement does not prescribe a single company valuation or identical terms for every investment.
What is expected to scale
The Commission identifies air and missile defence, drones, counter-drone systems and other critical defence technologies. Its objective is larger industrial capability. A useful investment case connects capital to a specific change in production, delivery, support or the resources needed to expand.
Customer interest alone does not establish future revenue. Signed orders, letters of intent, trials and commercial conversations need to be distinguished. The technical capability of a product should also be separated from the company’s ability to deliver it repeatedly at the required quality.
Dual-use support and STEP Defence have different rules
The June amendment also opened EIC Accelerator and STEP Scaleup to dual-use technologies. EIC mentions AI, quantum, materials and robotics, alongside grants up to €2.5 million and equity up to €30 million under the relevant instruments. This does not mean every route offers both maximum components together.
A team with a prototype and a modest research requirement should compare instruments by maturity and financing type. A major equity round does not replace early-stage research support. Conversely, a company with orders but insufficient delivery capacity may principally need capital and an organisation capable of managing growth.
Questions to settle before October
Our assessment is that the industrial plan and cash-flow model need to tell the same story. Assumptions about expansion speed, component access, expenditure and time to revenue should be explicit. They should remain understandable if sales progress more slowly than the central forecast.
The Commission expects results in early 2027. That is a planned selection timetable, not a guaranteed payment date. Submission is not closed financing, and the €30 million ceiling must not be presented as an awarded amount.
Sources & context
Published by Mitchell Strategic Solutions Group. See our editorial standards and corrections policy. Read more →
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