EIC STEP Scale Up

1. GRANT PURPOSE AND TARGET

• Core Objective: To provide significant equity-only investment to ambitious, high-potential scale-up companies developing game-changing innovations in Europe's critical technology areas. The goal is to fill the funding gap for scaling up high-risk innovations and to act as a catalyst for larger funding rounds from private and public investors.
• Funding Organization: European Innovation Council (EIC) under the Horizon Europe programme.
• Target Recipients: This call is open to single applicants that are an SME (including start-ups and spin-offs) or a small mid-cap (up to 499 employees). An investor may also submit a proposal on behalf of an eligible company.
• Sector Focus: SECTOR-SPECIFIC. Projects must fall into one of three priority technology areas defined by the Strategic Technologies for Europe Platform (STEP) regulation:
  • Digital technologies and deep tech innovations (e.g., AI, quantum, advanced semiconductors, robotics).
  • Clean and resource-efficient technologies (e.g., net-zero technologies, renewables, batteries, hydrogen, grid technologies).
  • Biotechnologies (e.g., medicinal products, DNA/RNA tech, bioinformatics, nanobiotechnology).
• Geographic Scope: Applicants must be legal entities established in a Member State of the European Union or a Country Associated to Horizon Europe.
• Key Filtering Criteria: The key characteristics for initial screening are:
  • Project Scale: The company must be seeking a significant equity investment of at least €10 million and up to €30 million.
  • Technology Readiness Level (TRL): The innovation must be at a minimum of TRL 8 (system complete and qualified).
  • Strategic Fit: The project must align with the critical technology areas defined by STEP and aim to reduce or prevent the EU's strategic dependencies.

4. FINANCIAL STRUCTURE

This call provides equity-only support. No grant component is available.

• Funding Range: The EIC Fund provides equity investments from a minimum of €10 million to a maximum of €30 million. Higher or lower amounts may be considered if properly justified.
• Co-financing: This is a co-investment instrument. The EIC investment is designed to catalyze larger funding rounds, typically aiming for a total round size that is 3 to 5 times the EIC's contribution. Applicants must have a pre-commitment from a qualified lead investor for at least 20% of the total target funding round.
• Investment Form: The investment component will typically take the form of equity or quasi-equity (e.g., convertible loans). The specific terms are negotiated on a case-by-case basis with the EIC Fund.
• Eligible Costs: As this is an equity investment to support company scale-up rather than a grant for a specific project, the concept of 'eligible costs' in the traditional sense does not apply. The investment is intended to finance activities that are critical for growth, development, and market deployment of the innovation.
• Ineligible Costs: Not specified in the documents, as the funding is an equity investment for overall company growth and scaling activities.
• Payment & Reporting: The investment is made by the EIC Fund following a successful evaluation, due diligence process, and negotiation of an investment agreement. Reporting obligations will be defined in the investment agreement.

2. ELIGIBILITY REQUIREMENTS

Formal Criteria

• Legal Entity: Applicants must be a single company, legally established in an EU Member State or a Horizon Europe Associated Country.
• Organizational Status: The applicant must be an SME (as per the EU definition) or a small mid-cap (a company with up to 499 employees that is not an SME). An investor can also apply on behalf of an eligible company, provided a prior agreement exists.
• Pre-Commitment from Investor: Applicants must demonstrate initial market interest by securing a pre-commitment for an equity investment from a 'qualified investor'. This pre-commitment must represent at least 20% of the total target funding round the company aims to raise.
• Project Maturity: The innovation must have reached at least Technology Readiness Level (TRL) 8.
• Single Applicant: Proposals must be submitted by a single legal entity. Consortiums are not eligible.

Technical Expertise

• Applicants must demonstrate that the team possesses the necessary skills, experience, and motivation to successfully bring the innovation to market and scale the business.

Exclusion Criteria

• Control by Non-Associated Third Country: The recipient of the investment must not be directly or indirectly controlled by a non-associated third country or a legal entity established in such a country. This is a critical economic security measure.
• Duplicate Funding: Companies cannot be financed more than once under this specific call for the same purpose. However, follow-on funding may be possible through the EIC's normal processes. Beneficiaries of a previous EIC Accelerator grant can apply for equity-only support under this call.

5. APPLICATION PRACTICAL INFORMATION

• Deadlines: The call is continuously open. However, there is a cut-off date for the 2025 budget. The deadline for the HORIZON-EIC-2025-EICSTEP-01 call is 28 October 2025 at 17:00 Brussels time.
• Required Documents: The application is submitted online and is described as 'significantly shorter and simpler' than a standard EIC Accelerator application. It includes:
  • A set of online application forms.
  • A pitch deck.
  • A video pitch.
• Application Process:
  • Submission: Proposals must be submitted through the EU Funding & Tenders Portal.
  • Step 1: Remote Evaluation: A remote evaluation by at least three independent experts results in a 'GO' or 'NO GO' decision within approximately 6-8 weeks.
  • Step 2: Face-to-Face Interview: If 'GO' is achieved, applicants are invited to an interview with an EIC jury. A final 'GO' or 'NO GO' decision is made. Results are expected within 8-10 weeks of the initial submission.
  • Step 3: Due Diligence & Investment: Successful companies enter due diligence and negotiations with the EIC Fund for the investment.
• Support: In addition to equity funding, successful applicants receive:
  • Sovereignty (STEP) Seal: A quality label recognizing the project's strategic importance, designed to help attract other public and private funding.
  • Business Acceleration Services (BAS): Access to a range of services including coaching, mentoring, and networking events.
  • Link to Venture Debt: Direct access to consider complementary Venture Debt financing from the European Investment Bank (EIB) and other InvestEU partners.

3. EVALUATION CRITERIA

The evaluation is a two-step process with a 'GO' or 'NO GO' assessment at each stage against three core criteria. A consensus 'GO' is required to pass the remote evaluation, and a 'GO' from the jury is needed at the interview stage.

Scoring Factors

The evaluation is not based on a numerical score but on a 'GO' / 'NO GO' decision for each of the following three award criteria:
1. Excellence
2. Impact
3. Level of risk, implementation, and need for Union support

Innovation & Impact

• Excellence: The innovation must demonstrate a high degree of novelty and be supported by a solid, convincing business model. The timing for the innovation must be right, and the team must be credible, with the required skills and motivation.
• Impact: The project must show potential to create new markets or significantly disrupt existing ones. The innovation should be scalable with the potential for a significant return on investment. It must also demonstrate the potential to create significant societal or economic benefits for the European Union.

Project Quality

• Level of risk, implementation, and need for Union support: The application must present a clear and convincing plan for developing and commercializing the innovation. The financial needs of the project must be well-defined and realistic. The risk level must be appropriate for EIC investment, meaning the project is considered too risky for private investors to finance alone at this stage.

Strategic Fit

• The project's alignment with the STEP objectives (developing or manufacturing critical technologies in digital, clean tech, or biotech) is fundamental. The evaluation assesses if the innovation is 'high risk and high potential' and requires EIC's support to de-risk it for other investors. The project's contribution to reducing the EU's strategic dependencies is a key consideration.

6. COMPLIANCE AND SPECIAL REQUIREMENTS

• Regulatory Compliance: General compliance with all applicable EU and national laws is required. Specific compliance needs will be assessed during the due diligence phase.
• IP Policy: A key condition is that supported companies must keep most of their value, including their Intellectual Property (IP), within the EU or Horizon Europe Associated Countries to contribute to the Union's economic growth.
• Economic Security and Control: This is a major requirement. The recipient of the investment must not be directly or indirectly controlled by a non-associated third country or a legal entity established in a non-associated third country. This is to safeguard the Union’s strategic assets, interests, autonomy, and security.
• Unique Aspects:
  • Sovereignty (STEP) Seal: All applicants meeting the evaluation thresholds (even if not funded due to budget limitations) receive this seal to facilitate access to other funding sources.
  • Fast-Track Evaluation: The process is designed to be much faster than standard EIC calls, with a decision on investment expected within 10-12 weeks from application.
  • Equity-Only Focus: This call does not provide grant funding, focusing exclusively on large-scale equity investments for scale-up companies.
• Industry-Specific Rules: Projects must align with the technology areas defined in the STEP Regulation (EU) 2024/795) and further clarified in the associated Guidance Note. These documents detail what constitutes 'critical technologies' in the digital, cleantech, and biotech sectors.