STEP Supports Large Equity Funding Rounds for High-risk, Strategically Critical Technologies
The European Innovation Council (EIC) STEP Scale-Up is a transformative initiative under the Strategic Technologies for Europe Platform (STEP). Its goal is straightforward yet ambitious - to rapidly scale high-potential deep-tech innovations critical to Europe’s strategic and economic future. With equity investments ranging from €10-30 million, the STEP programme fills a vital funding gap, enabling innovative companies to pursue bold growth that would be challenging to finance through traditional means alone.
Who Is the Ideal STEP Candidate?
The STEP Scale-Up is specifically designed for ambitious startups, SMEs, or small mid-caps (up to 499 employees) located within the EU Member States or associated countries. Ideal candidates have:
· A clearly validated deep-tech prototype, ready for large-scale industrial deployment.
· Strong market traction and a compelling business model.
· A strategic positioning in sectors critical to Europe's future: Digital and deep tech (quantum computing, semiconductors, AI, advanced robotics), clean and resource-efficient technologies (renewable energy, hydrogen, circular economy, energy storage), or groundbreaking biotechnology (DNA/RNA therapies, nanobiotechnology).
· An advanced fundraising strategy, preparing a significant funding round between €50-150 million, with at least 20% pre-committed by a single qualified investor.
Why Choose STEP Scale-Up Over Other EIC Calls?
STEP differs from other funding schemes like the EIC Accelerator by explicitly targeting later-stage ventures ready to scale significantly.
Unlike the EIC Accelerator, which supports earlier-stage innovations across various sectors, STEP exclusively supports large equity funding rounds for high-risk, strategically critical technologies. Companies that have successfully completed earlier funding rounds (including previous EIC Accelerator winners) and now seek to dramatically scale their business and market footprint find STEP particularly suitable.
Comprehensive Benefits Beyond Funding
Receiving STEP funding means more than financial support. Companies gain:
- Robust validation from thorough due diligence conducted by the EIC jury, significantly boosting credibility.
- Strategic business acceleration services, including expert coaching, mentoring, and exclusive networking opportunities with global corporates and deep-tech investors.
- The prestigious STEP Seal, awarded to companies that meet rigorous evaluation criteria, providing enhanced visibility and improved access to follow-on investments and partnerships.
How Does EIC STEP Funding Work in Practice?
Consider a hypothetical example: A European cleantech company needs €100 million to expand production and enter global markets. First, the company secures €20 million in pre-commitment from a venture capital firm as the leading investor, meeting STEP’s minimum investor commitment requirement of 20%. They then successfully apply to the STEP Scale-Up programme, securing an additional €20 million from the EIC Fund. Finally, leveraging the credibility and support from STEP, the company attracts additional investors, raising the remaining €60 million required for their full-scale expansion.
Ensuring Strategic Alignment and Economic Security
STEP ensures the alignment of funded innovations with the EU’s strategic interests and economic security. Recipient companies are expected to keep critical assets, including intellectual property, within the EU or associated countries. Specific conditions protecting these interests are clearly outlined in investment agreements with the EIC Fund.
How Nordic Innovators Can Accelerate Your STEP Application
At Nordic Innovators, we specialize in turning ambitious deep-tech companies into success stories. Our expertise lies in:
· Evaluating and enhancing your STEP eligibility.
· Developing compelling business cases and investor pitch decks.
· Crafting polished, convincing STEP applications that align perfectly with the EIC’s stringent criteria.
If your venture fits the STEP criteria, and you are determined to scale with global impact, this is your moment. Contact Nordic Innovators today for a no-obligation eligibility assessment and let us help transform your business into a leading European strategic innovator.
