# 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.
EUACC page: https://www.euacc.ai/briefing/pulse-13
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## Public content

**issue:** 13
**type:** pulse
**date range:** 24 Jun 2026
**tagline:** 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.
**published at:** 2026-06-25
**sections:** 
  -     **body:** 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**.
    **emoji:** 🛡️
    **label:** EU DEFENCE CAPITAL
    **heading:** EIC STEP Defence Scale Up opens 30 June: the first EU equity cheque for pure-play defence
  -     **body:** 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.
    **emoji:** 🎯
    **label:** WHY IT MATTERS
    **heading:** A decades-old policy line just moved, and the window opens in five days

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