EIC STEP Scale-Up

The EIC STEP Scale-Up is a new initiative introduced in the EIC Work Programme 2025 as a pilot call. It specifically targets companies advancing strategic technologies critical to Europe’s competitiveness and sovereignty, particularly in digital, clean, resource-efficient, and biotech sectors. Here’s a breakdown of its purpose, funding structure, eligibility, and anticipated impact: Purpose of the EIC STEP Scale-Up The STEP Scale-Up call was created to address the needs of high-growth companies in deep-tech sectors, which often struggle to secure the large-scale funding necessary to expand to industrial-scale operations. This initiative aligns with the European Union’s objective to enhance autonomy in key technology areas, reduce dependency on non-EU technologies, and support technologies that contribute to Europe’s green and digital transitions. Funding Structure Unlike other EIC calls, the STEP Scale-Up call focuses on providing significant equity-only investments through the EIC Fund, with investment amounts ranging from €10 million to €30 million. This larger funding window is designed to fill the financial gap for deep-tech companies that require extensive capital to scale their technologies to commercial readiness but face challenges in securing private investment. Eligibility Criteria Targeted Applicants: Open to companies based in EU Member States or Horizon Europe-associated countries, particularly those already benefiting from the EIC Accelerator. Strategic Technology Focus: Priority is given to projects within critical technology sectors, including digital tech, clean tech, advanced manufacturing, resource efficiency, and biotechnology. Development Stage: Applicants must be ready to scale, demonstrating market validation and a clear pathway to industrialization or commercialization. Application and Evaluation Process The STEP Scale-Up call features a continuous submission process, allowing companies to apply throughout the year as they reach readiness for scaling. This flexible approach ensures that companies do not miss out on funding opportunities due to fixed deadlines, accommodating the diverse timelines of deep-tech scaling. Due Diligence: After initial submission, companies undergo rigorous due diligence, focusing on technology viability, scalability, market potential, and alignment with EU strategic priorities. Security Measures: Due to the strategic importance of these technologies, additional safeguards may be applied, ensuring that projects align with EU interests and are protected from external risks, including foreign influence. Expected Outcomes and Impact The STEP Scale-Up call is expected to yield substantial outcomes for Europe’s innovation landscape: Enhanced European Autonomy: By funding strategic technologies within the EU, the STEP Scale-Up call supports Europe’s technological independence and reduces reliance on non-European suppliers. Scalable High-Impact Innovations: These funds help promising companies advance from validated prototypes to full industrial-scale production, accelerating time-to-market for technologies that meet pressing EU priorities in sustainability, digitalization, and security. Attraction of Private Investment: The substantial funding under STEP Scale-Up aims to crowd in additional private investments, making European deep-tech companies more attractive to venture capital and private equity. Role in the EIC Framework The EIC STEP Scale-Up is a key addition to the EIC Work Programme, complementing the Accelerator and Pathfinder by addressing the specific needs of companies at the scaling phase. It helps bridge the funding gap for breakthrough technologies that require more extensive investment to reach market maturity, reinforcing the EU’s innovation ecosystem and strategic objectives. Strategic Technologies for Europe Platform (STEP): An Overview The Strategic Technologies for Europe Platform (STEP) was established under the EU Regulation 2024/795 to support the advancement and manufacturing of critical technologies essential to Europe’s green and digital transitions. It focuses on building resilience and reducing strategic dependencies in the Union by bolstering value chains in digital, clean, and biotechnology sectors. Here’s a closer look at STEP’s objectives, technology focus areas, and its strategic role in Europe’s innovation landscape. Objectives of STEP STEP’s primary objectives, as set out in Article 2(1) of the Regulation, are to: Support the Development and Manufacturing of Critical Technologies: STEP focuses on technologies in strategic sectors that drive Europe’s competitiveness and technological sovereignty. By promoting projects across the development cycle—such as prototype testing, scaling production, and ensuring market readiness—STEP aims to ensure these technologies meet high-performance and scalability standards. Strengthen Value Chains to Reduce Dependencies: Strengthening Europe’s critical technology value chains is vital to reducing dependencies on third-country suppliers. This includes supporting the manufacturing of specific components, machinery, and essential raw materials, such as silicon for semiconductors and lithium for battery production. Address Labour and Skills Shortages: Recognizing the need for a skilled workforce in critical sectors, STEP supports investments in education and sector-specific training. Emphasis is placed on addressing shortages in skills critical to digital innovation, clean technology, and biotechnology, enabling long-term resilience in the workforce. Key Technology Sectors STEP targets three main technological areas that are vital to Europe’s economic and strategic interests: Digital and Deep Tech Innovation: Includes critical digital technologies such as AI, 5G/6G, blockchain, quantum computing, and IoT. STEP aims to reduce dependency on global suppliers by advancing Europe’s digital capabilities and supporting innovations in sectors like high-performance computing and secure communication. Clean and Resource-Efficient Technologies: Covers net-zero technologies, including renewable energy, battery technology, hydrogen fuel cells, and carbon capture. STEP supports these technologies to meet Europe’s ambitious climate goals and enhance its resource efficiency, supporting the EU’s transition toward a circular, low-carbon economy. Biotechnologies: STEP invests in biotechnologies, focusing on applications in health (e.g., critical medicines, vaccines) and environmental services (e.g., bioremediation, bio-based materials). This sector also includes projects within the bioeconomy, such as sustainable packaging and biofuels, which reduce dependency on traditional resources and offer sustainable alternatives. Conditions for Technological Criticality A technology is deemed critical under STEP if it: Introduces Cutting-Edge Innovation with Economic Potential: STEP prioritizes breakthrough technologies that bring significant economic potential to the internal market. This may include market-shaping innovations or technologies that yield substantial cross-border spillover effects within the EU, boosting growth and employment. Reduces or Prevents Strategic Dependencies: STEP promotes technologies that enhance Europe’s self-reliance by reducing dependencies on non-EU suppliers, especially in sectors where Europe’s supply chains are vulnerable. This encompasses technologies in sectors critical to infrastructure, security, and supply chain resilience. Relation to Key EU Legislation and Initiatives Net-Zero Industry Act (NZIA) and Critical Raw Materials Act (CRMA): … Read more