EIC Receives Nine Bids for Defense Funding Call
The inaugural €100 million program aims to catalyze large-scale private equity investments into European defense startups.
Updated on Oct. 29, 2026 in Startups
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The European Innovation Council has received nine applications for its inaugural STEP Scale Up Defence funding call, with companies requesting a total of €175 million in equity. This initial research-stage funding initiative aims to provide direct investments of €10 million to €30 million for dual-use technology developers.
Why it matters
The funding marks a shift in how European institutions support the defence industrial base by providing direct equity to startups. The program aims to de-risk these companies, effectively catalyzing private capital rounds at least three times the size of the initial EIC contribution.
The EIC received nine applications across seven countries, with one third of participants hailing from regions eligible for Widening support. Successful applicants are eligible for €10 million to €30 million in direct equity per company.
The players
European Innovation Council
The EU's innovation support agency tasked with identifying and funding high-risk, high-impact technologies through grants and equity stakes.
European Commission
The executive branch of the European Union responsible for drafting legislation and managing the bloc's budget and research programs.
The details
The EIC Fund provides direct equity investment to scale defence and dual-use technology startups—companies developing products with both civilian and military applications. By providing this capital, the EIC aims to signal institutional stability to private investors, intending to catalyze subsequent funding rounds that are at least three times the value of the EIC equity stake.
Timeline
17 June 2026: European Commission amends the 2026 EIC Work Programme to enable the Defence Mini-Omnibus.
October 2026: EIC reports the receipt of nine initial applications.
January 2027: Interviews with shortlisted candidates are scheduled.
February 2027: Expected announcement of final call results.
The Tech Race
This initiative represents a significant expansion of the European Innovation Council’s mandate into the competitive global defence sector. The call follows the amendment of the 2026 Work Programme to explicitly support dual-use capabilities, positioning the EU to compete with established venture-backed defence innovation models.
Defence and dual-use technology startups looking for growth capital can track this program for future funding cycles as the €100 million budget is deployed. The program serves as a primary signal for the viability of specialized defense-tech investment in the European market.
The takeaway
The EIC is signaling an institutional commitment to dual-use technology that will likely influence private investment in European defense-tech. Interested parties should monitor the February 2027 results to see which sub-sectors and nations receive priority funding under the new omnibus framework.
What happens next
Shortlisted candidates will participate in interviews in January 2027, followed by the official announcement of successful recipients in February 2027.
Further reading
For broader trends in European venture capital, see the latest updates in Startups.
Source note: This article includes information reported by Gv.
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Should government programs provide direct equity investment to private defence and dual-use technology companies?
