EIC STEP Scale Up Defence 2026: what companies should check before applying

The EIC STEP Scale Up Defence call is one of the most important new EU funding opportunities for European defence technology companies in 2026. It gives startups, SMEs and small mid-caps access to significant equity investment at a stage where many defence innovators need capital to move from promising technology to industrial scale.

The call was launched under the European Innovation Council as part of the Strategic Technologies for Europe Platform. It has a 2026 budget of €100 million and offers equity only investments of €10 million to €30 million through the EIC Fund. The call is open for companies working in critical defence technology areas, including air and missile defence, drones, counter-drone systems and other defence fields linked to Europe’s strategic capabilities.

For companies in defence, dual-use technologies, robotics, AI, sensors, advanced materials, cyber, electronic systems or autonomous platforms, this call deserves serious attention. It is designed for scale-ups preparing major funding rounds, where public investment from the EIC can help bring in larger private co-investment and support faster industrial growth.

The deadline for applying is 28 October 2026. Results are expected in early 2027.

What is EIC STEP Scale Up Defence?

EIC STEP Scale Up Defence is a European Innovation Council funding scheme for companies developing critical defence technologies. It supports startups, SMEs and small mid-caps that are ready to scale and need a larger investment round to build industrial capacity, enter strategic markets or accelerate deployment.

The scheme is part of STEP, the Strategic Technologies for Europe Platform, which supports technologies considered important for Europe’s competitiveness, resilience and strategic autonomy. In the defence call, the focus is on companies with technologies that can strengthen Europe’s defence technological and industrial base and reduce strategic dependencies.

The funding is provided as equity investment, not as a traditional grant. The EIC Fund can invest between €10 million and €30 million, and the call is expected to support larger funding rounds in the range of €50 million to €150 million or more. The EIC expects the total round to be at least three to five times larger than the requested EIC investment.

For applicants, this creates a very specific funding logic. The company needs to show technological relevance, market potential, investor interest, ownership clarity and a credible plan for scaling.

Who can apply?

The call is open to a single SME or small mid-cap with fewer than 500 employees, established in an EU Member State, in a European Economic Area country associated to Horizon Europe, or in Ukraine. An investor may also submit a proposal on behalf of an eligible company.

The call includes ownership and control conditions. Legal entities that are directly or indirectly controlled by a third country outside Ukraine or the eligible EEA-associated countries are generally excluded, although participation may still be possible if appropriate guarantees are approved under the relevant national procedures.

This ownership check is especially important for defence companies. Cap tables, investor rights, parent company structures, shareholder agreements and indirect control arrangements can affect eligibility. Companies preparing an application should review these issues early, because they are not simple administrative details. They can determine whether the company can participate at all.

The call also targets companies seeking major funding rounds. Applicants need proof of initial market interest from a single qualified investor covering at least 20% of the total target funding round.

What kind of companies are a strong fit?

The call is most relevant for companies that already have mature defence or defence relevant technology and are preparing to scale. A good candidate will usually have more than a concept, prototype or early pilot. It should be able to show that the technology has strategic relevance, that the market need is clear, and that investors are already interested in the company’s next funding round.

The strongest applicants are likely to be companies working in areas such as drones, counter-drone systems, air and missile defence, secure communications, AI-enabled defence systems, cyber defence, electronic warfare, sensing, advanced materials, autonomous systems, space-related defence capabilities, battlefield connectivity, command-and-control systems or other critical technologies relevant to European security.

A defence company should also be able to explain its industrial path. The EIC will want to understand how the investment supports scale-up, production, deployment readiness, customer access, supply chain capacity or market expansion. For many applicants, the central question will be whether the company can credibly move from technology validation to large-scale industrial execution.

Investor readiness matters. The official call requires a pre-commitment from a single qualified investor representing at least 20% of the total target funding round. The pre-commitment must follow the official template and the relevant portion of that commitment must be fully uninvested at the date of the pre-commitment letter. Syndicated pre-commitments do not qualify if no individual investor reaches the 20% threshold.

What documents are required?

The application package is more demanding than a short funding form. According to the official EIC call page, admissible and eligible proposals must include a full business plan of up to 50 pages, a pitch deck of up to 15 pages, a qualified investor pre-commitment, a financial plan, freedom to operate information, CVs or LinkedIn profiles of key personnel, an ownership and control self-assessment, and letters of intent.

These materials need to work together. The business plan should explain the company, the technology, the market, the defence relevance, the scale-up strategy, the ownership structure and the financial logic. The pitch deck should communicate the same story in a sharper format for the jury interview. The financial plan should support the investment case with realistic assumptions, clear use of proceeds and a credible view of the total funding round.

The freedom-to-operate section also needs attention. If a full FTO analysis is not available, applicants can upload a short note explaining the situation and providing as much information as possible. For software companies, the call allows a simple statement where FTO is not relevant.

For defence companies, the FTO question can connect with intellectual property, export controls, licensing, supplier dependencies, third-party components and the ability to commercialise or deploy the technology in strategic markets. Even where a formal FTO analysis is not required, the company should be prepared to explain how it manages these risks.

How the application process works

Companies submit their proposal through the EU Funding and Tenders Portal. If the application meets the eligibility requirements, the applicant is invited to a jury interview. The EIC states that companies will be informed about the interview within four to six weeks from the start of the evaluation process. The interview is assessed by a jury of up to six members, and applicants are informed about the result within two weeks from the interview date.

Companies that meet all evaluation criteria can receive the STEP Seal and access EIC Business Acceleration Services, even if they are not retained for funding. The EIC also provides feedback when proposals do not meet the criteria, which can help companies improve future applications.

The interview stage should be treated as an investor-level discussion. The team needs to be ready to explain the technology, the market, the funding round, the investor pre-commitment, the use of funds, the ownership structure, the strategic relevance to Europe and the company’s ability to scale. In defence, the team should also be ready to address regulatory, security, procurement, deployment and supply chain questions.

What companies should check before applying

Before starting the application, companies should review whether the call matches their current stage. EIC STEP Scale Up Defence is built for companies that are preparing a large funding round and can show credible investor interest. A company that still needs early R&D funding, first prototype development or basic validation may need to strengthen its position before applying.

The first area to review is technology fit. The company should be able to explain how its solution contributes to critical defence technologies and why it matters for Europe’s defence industrial base. The relevance should be specific, with a clear connection to defence capability, industrial scale-up, strategic autonomy or reduced dependency.

The second area is market and customer evidence. Defence technology companies often face long procurement cycles, complex validation requirements and demanding end-user expectations. The application should show who needs the technology, what problem it addresses, what evidence supports demand, and how the company plans to move from interest to adoption.

The third area is investor readiness. The required investor pre-commitment means the company needs to be active in fundraising before submission. The investment round should be credible, the lead investor commitment should meet the call conditions, and the company should be able to explain how EIC investment fits into the broader financing strategy.

The fourth area is ownership and control. Defence calls can involve stricter scrutiny of company control, foreign ownership, shareholder rights and strategic dependencies. Companies with international investors, complex holding structures or non-EU links should review the control conditions carefully before committing to the application.

The fifth area is documentation. The business plan, pitch deck, financial plan, FTO note, key personnel information and letters of intent all need to support the same investment case. Weak alignment between these documents can make the application harder to assess and less convincing during the interview.

What is the deadline for EIC STEP Scale Up Defence 2026?

The deadline to apply is 28 October 2026. Results are expected in early 2027.

How Proposal Peak platform can support the preparation process

EIC STEP Scale Up Defence requires more than identifying an open call. Companies need to understand whether the opportunity fits their stage, funding round, ownership structure, market position and defence relevance before they commit time to the full application.

Proposal Peak platform helps companies assess funding fit, eligibility and application requirements before they invest in a full proposal. For defence scale-ups, this can include reviewing call alignment, investor-readiness requirements, ownership and control issues, required documents, timeline, evidence gaps and the overall application strategy.

For companies preparing for the 28 October 2026 deadline, the most useful starting point is an early readiness review. It can show whether the company is positioned to apply, which materials need to be prepared, and which risks should be addressed before submission.

Final thoughts

EIC STEP Scale Up Defence is a significant opportunity for European defence technology companies that are ready to scale. The call offers €10 million to €30 million in equity investment, aims to catalyse larger funding rounds, and focuses on technologies that can strengthen Europe’s defence industrial capacity.

The companies best positioned for this call will be those that can combine technological maturity, investor commitment, clear defence relevance, ownership transparency and a credible scale-up plan. The deadline is 28 October 2026, which leaves limited time for applicants that still need to align investors, prepare documents and resolve eligibility questions.

For defence startups, SMEs and small mid-caps, the first step should be a practical fit assessment. If the company is aligned with the call and ready for a major funding round, EIC STEP Scale Up Defence can become an important route for scaling critical defence technologies in Europe.

 Author: Proposal Peak project manager – funding and procurement Edgars Poga

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