EUACCDaily Pulse #13 · 24 Jun 2026
The European Innovation Council opens applications on 30 June for its first-ever direct equity vehicle targeting pure-play defence scaleups, deploying up to €30 million per company from a €100 million pool and breaking a decades-old EU funding prohibition on defence investment.
🛡️EU DEFENCE CAPITAL
EIC STEP Defence Scale Up opens 30 June: the first EU equity cheque for pure-play defence
On 17 June, the European Innovation Council formally expanded its mandate to cover defence, and on 30 June — five days from now — applications open for the EIC STEP Defence Scale Up, the first EU funding instrument authorised to write direct equity into pure-play defence companies.
The fund carries a €100 million budget and can invest up to €30 million per company. It targets larger rounds of €50-150 million or more, with the EIC entering as a minority co-investor alongside private capital. Eligible technologies are air and missile defence, drones and counter-drone systems, and other critical defence platforms. Companies from EU member states, EEA/Horizon-associated countries, and Ukraine may apply. The cut-off is 28 October 2026, with investment decisions expected in early 2027.
🎯WHY IT MATTERS
A decades-old policy line just moved, and the window opens in five days
EU funding programmes have treated defence as out-of-scope since the founding of Horizon. STEP Defence breaks that. For the first time, the EIC can co-invest equity alongside Sequoia, Founders Fund, or any private lead into a company building weapons systems or force-multipliers, on the same terms, same round, same cap table.
Stark Defence raised €500 million at €3.5 billion from US-led investors this week. STEP Defence is the European institutional counterpart: a public balance sheet now participating in the same class of capital rounds. The ceiling is lower (€30 million per company), but the instrument is new and the budget will grow if the first cohort performs.
For a defence or dual-use scaleup assembling a €50–150 million round in drones, air defence, or critical military systems: the application window opens 30 June. The actionable move is to confirm co-investor commitments now so the EIC filing is ready on day one.
Get it every Monday
Free · 5 min read · Unsubscribe anytime
← All 5 issuesEUACC · Get funded. Build Europe.