New Defence Startup Funding Call Receives Nine Requests
Dual-use technology firms are seeking €175 million in equity, forcing a competitive review of applicants for the €100 million budget.
Updated on Oct. 29, 2026 in Startups
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The European Innovation Council has received nine applications for its inaugural STEP Scale Up Defence funding call. These startups, hailing from seven different countries, are collectively seeking €175 million in direct equity to advance defence and dual-use technologies.
Why it matters
The EIC opened this funding channel to bridge the capital gap for startups developing dual-use technologies, effectively prioritizing firms that can leverage public equity to catalyze significantly larger private investment rounds.
Applicants requested a total of €175 million in equity investment against a total program budget of €100 million for 2026. Each individual company is eligible to receive between €10 million and €30 million in direct equity support.
The players
European Innovation Council
An EU funding body that provides grants and equity investments to support high-risk, high-impact startups and research-based ventures.
European Commission
The executive branch of the European Union responsible for drafting legislation, managing the EU budget, and implementing policy programs like the EIC Work Programme.
The details
The EIC Fund provides capital to companies in the defence sector, requiring applicants to demonstrate that the public investment will trigger additional funding rounds at least three times the value of the EIC contribution. This program is part of the broader European Commission Defence Mini-Omnibus, which was integrated into the 2026 EIC Work Programme to streamline support for dual-use technologies that serve both commercial and state security interests.
Timeline
17 June 2026: The European Commission amended the 2026 EIC Work Programme to include the Defence Mini-Omnibus.
October 2026: The EIC finalized the receipt of nine applications for the inaugural funding round.
January 2027: Shortlisted applicants will participate in interviews.
February 2027: Final results of the funding call will be announced.
Market Landscape
This initiative follows the June 2026 adoption of the European Commission Defence Mini-Omnibus, which mandates new support pathways for dual-use technology firms. It represents a pivot toward state-backed equity to address funding disparities in the European defence-tech sector.
Operators in the dual-use technology sector should monitor these funding outcomes to gauge the EIC's appetite for specific defence-tech business models. Because the total demand of €175 million exceeds the €100 million budget, successful applicants will likely be those best positioned to prove their ability to raise 3x their EIC award in private follow-on capital.
The takeaway
The EIC is signaling a structural shift toward underwriting dual-use innovation, creating a new source of capital for specialized hardware and security firms. Entrepreneurs should analyze the upcoming February 2027 results to benchmark their own capital-raising strategies against these successful applicants.
What happens next
Shortlisted companies should prepare for evaluation interviews scheduled for January 2027, with final funding decisions expected in February 2027.
Further reading
For broader trends in high-growth enterprise funding, see our coverage of Startups.
Source note: This article includes information reported by Gv.
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Should government programs provide direct equity investment to private defence and dual-use technology companies?
