EIC equity instruments: how Europe funds deep-tech scale-ups

Traditionally associated with grants, the European Innovation Council (EIC) supports European deep-tech companies across the innovation journey, from early research and development to market entry and scale-up.

Under the EIC 2026 Work Programme and through the EIC Fund, three principal instruments, expected to continue in the current draft of the EIC 2027 Work Programme, support company growth through equity:

• EIC Accelerator;
• EIC STEP Scale Up call;
• Scaleup Europe Fund.

Together, they broaden the financing options available to European deep-tech companies, responding - in particular - to the need for substantial patient capital to industrialise, enter new markets and compete internationally.

These instruments are not interchangeable. Monica Pretti, Luxinnovation

 “However, the key message for companies is that these instruments are not interchangeable,” warns Monica Pretti, Advisor in the European Funding at Luxinnovation. “They correspond to different levels of maturity, different financing needs and different expectations from the EIC as well as from private investors.”

EIC Accelerator: grant for development, equity for scale-up

The EIC Accelerator remains the best-known EIC instrument for companies.

It supports start-ups and SMEs, including spin-offs, in developing and bringing to market high-risk, high-impact innovations, including dual-use innovations.

It combines a grant of €2.5 million with an investment component of €1 million to €10 million, while grant-only and investment-only support are also available under specific conditions.

For many start-ups and SMEs, the EIC Accelerator can be a first step into EIC blended finance. The grant finances innovation activities such as development, demonstration, testing and regulatory work, while the investment component supports market deployment and scale-up.

Since the EIC’s inception under Horizon Europe in 2021, 10 unique Luxembourg-based companies have reached the EIC jury interview, with five selected for funding, including OQ Technology, Space Cargo Unlimited and Kore Metals more recently.

At a more advanced stage, businesses with a strong investment case may turn to the EIC STEP Scale Up call for larger equity investments.

EIC STEP Scale Up: larger equity tickets for strategic technologies

The EIC STEP Scale Up call targets European start-ups, SMEs and small mid-caps developing strategic digital and deep-tech innovations, clean and resource-efficient technologies, including net-zero technologies, and biotechnologies, including those with dual-use potential.

Unlike the Accelerator, STEP Scale Up provides equity-only, i.e., investments of €10 million to €30 million to catalyse funding rounds of €50 million to €150 million or more.

Applicants must be actively fundraising and provide an equity pre-commitment from one single qualified investor covering at least 20% of the target funding round. The corresponding amount must remain uninvested at the date of the pre-commitment letter.

“This is not an entry-level European funding instrument,” states Francesca Borrelli, Head of European Funding at Luxinnovation. “Applicants must already be in a fundraising dynamic and able to show that EIC participation can unlock a much larger investment round.”

A parallel EIC STEP Defence Scale Up call now supports critical defence technologies, through equity-only investments within the same range but with specific eligibility, security, and control requirements. Predominantly civilian or dual-use innovations fall under the general STEP Scale Up call.

EIC STEP Scale Up is not an entry-level European funding instrument. Francesca Borrelli, Luxinnovation

“Together, these instruments form a financing spectrum rather than a formal ladder. Some companies may move from the Accelerator to STEP Scale Up and later attract investment from the Scaleup Europe Fund, but prior participation in one instrument is neither required nor a guarantee of access to another”, explains Monica Pretti. “Each financing decision is based on the company’s maturity, technology, financing needs, strategic relevance and investor readiness.”

Scaleup Europe Fund: major growth-stage capital

The Scaleup Europe Fund (SEF) goes beyond the EIC’s existing equity instruments by targeting the largest growth rounds. This new multi-billion-euro late-stage and growth fund targets Europe’s most promising strategic technology companies in fields such as AI, quantum, semiconductors, energy, space, etc., with individual investments expected to reach €100 million, including follow-on.

In May 2026, the European Commission selected EQT as the preferred investment adviser and fund manager for the €5 billion Scaleup Europe Fund, which combines public and private capital to help European technology scale-ups grow globally while remaining rooted in Europe.

The ambition is evident: on 5 August 2026, EQT announced the fund's first investment, co-leading a €1 billion financing round in ICEYE, a Finnish company specialising in satellite-based Earth observation and sovereign intelligence. The round included €450 million in primary Series F proceeds at a valuation exceeding €10 billion.

Unlike the EIC Accelerator and STEP Scale Up, the Scaleup Europe Fund does not operate through a standard EIC call with fixed cut-off dates. It is established as a separate compartment within the EIC Fund and is managed by EQT, which oversees deal sourcing, company selection and the investment process under the fund’s investment framework, with investment terms assessed on a case-by-case basis.

Is your company ready for EIC equity investment?

Explore which instrument could best matches your company’s stage, ambitions and financing needs.

 Looking ahead to 2027

The draft EIC 2027 Work Programme continues this equity-led direction, although its figures and conditions remain indicative pending final adoption and official endorsement.

Luxembourg-based companies can contact Luxinnovation’s European Funding team to assess their fit and discuss next steps.