Strategic Technologies for Europe Platform (STEP)

The EU has launched a new initiative to support the development and manufacture of technologies seen as critical to Europe’s future. This new Strategic Technologies for Europe Platform (STEP) programme is a further measure designed to reinforce the EU’s commitment to Europe’s competitiveness and technological self-sufficiency. There are 11 EU programmes[1] which provide funding to development of critical technologies in a range of different ways from research to infrastructure. For instance, within Horizon Europe the EIC Pathfinder programme funds early-stage research and development, while the EIC Accelerator Programme expands this support to all stages of technology progression within the value chain from the bench to the marketplace. STEP further extends EU policy to strengthen recent initiatives by enhancing the supports available within these 11 programmes. It supports eligible companies by (a) increasing the levels of national support which member states can offer to them, and (b) giving them a Sovereignty (STEP) Seal designation which gives them priority status within the 11 EU programmes noted above. The priority technology areas targeted by STEP are:

• Digital technologies, including those relevant to the Digital Decade Policy Programme 2030, multi-country projects, and deep tech innovation; and
• ?Clean and resource efficient technologies, including those defined in the Net-Zero Industry Act; and
• ?Biotechnologies, including medicinal products on the Union list of critical medicines and components.

Qualifying technologies should either be a basis for innovative, cutting-edge products or services with significant economic potential, or should contribute to reduction or prevention of EU strategic dependencies.

STEP Activity in the EIC Programme

STEP will impact all EU programmes supporting technology development and commercialisation, and each will be affected in different ways. The EIC Programme has responded to the STEP programme by establishing a ‘STEP Scale Up call’. The EIC will support start-ups in the priority technology areas targeted by STEP. Specifically, this call focuses on larger investments in strategic technologies in these fields. In 2025, there will be a particular focus on semiconductor technologies and quantum technologies, including those which support the Chips Act.

The support within the STEP Scale Up call will be in the form of equity-only investments managed by the EIC Fund. Applicants will not receive a grant component. The budget for 2025 is €300 million, and applicants should apply for an investment of €10-30 million, as part of a round 3 to 5 times larger. The specific terms of each investment will be negotiated on a case-by-case basis in accordance with the EIC Fund Investment Guidelines. This ensures the investment is tailored to the applicant company's needs and EIC objectives. Applicants to the EIC STEP Scale Up call who meet the thresholds will also be awarded a Sovereignty (STEP) Seal, which gives them priority status within other EU funding programmes.

The EIC STEP Scale up is open to:

• Single SMEs or small mid-caps (<499 employees) established within a Member State or an Associated Country; and
• Investors in an eligible SME or small mid-cap as defined above.

Applicants will be required to submit:

• A full business plan (inc. company ownership and financial structure) outlining the STEP related objectives, and a pitch-deck (15 pages) summarising this plan; and
• A pre-commitment from a qualified investor willing to invest at least 20% of the target funding; and
• An ownership control declaration.

Applicants that meet the eligibility requirements will be invited to an interview with a Jury of up to six members. The process from application to result is expected to take 6-8 weeks.

Award criteria for EIC STEP Scale up proposals

Excellence?

• Does the company have a clear mission and vision and partnerships to realise their ambition to scale up?
• Does the innovation have breakthrough character and a high degree of novelty
• Is the innovation at the cutting edge of market, societal or tech trends?
• Has it been developed in a secure and reliable manner and adequately validated?
• Does the company have adequate Intellectual Property (IP) Rights and has freedom to operate analysis been carried out?

Impact

• Does the solution have sufficient added value to trigger customer demand?
• Can the innovation create new markets or significantly transform existing ones? Has the market been adequately quantified, (inc. conditions and growth rates?)
• Is there a convincing commercialisation strategy
• Does the innovation have scale-up potential for the company?
• Can the innovation achieve positive broader societal, economic, environmental or climate impacts?

STEP Impact:

• Does the innovation have a clear positive impact on the EU Single Market, either by:
• Strengthening its competitiveness; and/or
• Reducing strategic dependencies.
• Level of risk, implementation, and need for Union support.
• Does the executive team have the capability to bring the innovation to market?
• Does the nature and level of investment risk make European market actors unwilling to commit the full amount without support from the EIC Fund? Will these actors invest alongside the EIC or at a later stage?
• Have the main risks, and mitigating measures been identified?
• Does the proposal have a convincing plan to raise the required equity.

[1]? Digital Europe Programme, European Defence Fund, EU4Health, Horizon Europe, Innovation Fund, InvestEU, Recovery & Resilience Facility, Cohesion Fund, European Regional Development Fund, European Social Fund Plus (ESF+), and Just Transition Fund.