What is EIC STEP Scale Up?

 
STEP stands for Strategic Technologies for Europe Platform. The STEP Scale Up scheme is a new EIC instrument aimed at filling a funding gap for high-growth deep tech companies that need large scale investment to enter major rounds. It provides equity-only investments (i.e. the EIC Fund invests by taking a stake, not by grant) to scaleup firms. The aim is to catalyse much larger financing rounds (e.g. €50-150 million) by co-investing alongside private investors. It is targeted at strategically important sectors: digital, deep tech, clean/green technologies, and biotechnology.

How It Relates to Other EIC Programmes

• STEP Scale Up sits higher up the innovation chain than EIC Accelerator, which typically provides combined grant + equity finance for scaling from TRL ~5–9. STEP is for even larger rounds and more mature scale-up phases.

• It is a bridge to larger private capital: the EIC plays a catalysing role, anchoring a financing round so that others can join.

• Selected firms may also benefit from continuing accelerator-style support (BAS) to maximise growth and investor readiness.

Evaluation and Selection

✅    The evaluation process is rigorous. Proposals go through an eligibility check, then interviews and due diligence, before the EIC Fund moves to investment decisions.

✅    Because this is equity and involves risk, the EIC Fund will perform standard investment and financial diligence.

✅   The STEP Seal is awarded to applicants that pass evaluation thresholds even if actual investment is not possible due to budget constraints — it signals quality.

✅   Selection occurs in quarterly rounds (rolling evaluation).

Strengths, Risks & Considerations

Strengths

➜   Addresses a critical financing gap in Europe for deep tech at the scale-up stage.

➜   Using equity aligns incentives — the EIC Fund shares in upside.

➜   The commitment of EIC capital helps reduce perceived risk and attracts private co-investors.

➜   The STEP Seal adds credibility and visibility to firms.

➜   Access to acceleration support and networks helps scale execution and market entry.

Risks & Challenges

⚠️   The financial due diligence bar is high; companies must be investment-grade or nearly so.

⚠️   The requirement for pre-commitment from an investor can be a barrier.

⚠️   Equity dilution and negotiation terms matter — firms must be careful in structuring.

⚠️   Timing and alignment with investor cycles matter: you need to have your house in order before applying.

⚠️   Because it is new, there may be operational uncertainties and learning curves.

If you have any questions relating to EIC STEP Scale-up or wish to discuss how Grant Funding might benefit your business, please get in touch with the ABGi Team and a representative will get back to you to discuss your unique needs and explain how we can assist.