EIC STEP Scale Up

General conditions 1. Admissibility conditions: Proposal page limit and layout The applicable admissibility and eligibility conditions are detailed in the Work Programme Annex 2 unless otherwise stated in this call. Furthermore, in case of investment support, specific safeguards will be introduced in the investment agreement (see Introduction, section on Economic Security). To be deemed admissible and eligible, proposals must consist of: a full business plan, including information on the company’s ownership and financial structure and a justification on the STEP related objectives (maximum 50 pages); a pitch-deck (maximum 15 pages) in pdf format (this version will be presented to the jury if invited to interview); an equity pre-commitment from a single qualified investor (according to the official template on the Funding and Tenders Portal and also available on the EIC website); The pre-commitment must represent at least 20% of the total target funding round, which is expected to be in the range of EUR 50 to 150 million or more, and be at least3-5 times the EIC investment; a financial plan (according to the template available on the EIC website). Results of the freedom to operate (FTO) analysis. If you do not have one, please upload a note of maximum 2 pages outlining your freedom to operate and providing as much information as possible on this issue. In cases where the FTO is not relevant (e.g. software), please upload a simple statement. CVs of key personnel. Proposal page limits and layout: described in Part B of the Application Form available in the Submission System. 2. Eligible countries In accordance with Article 48(2) of the Horizon Europe Regulation,participation is limited to SMEs, including start-ups, and small mid-caps 196 established in the Union, in Ukraine, or in an EEA member associated to Horizon Europe. This call has a general exclusion rule: legal entities, established in the Union, in Ukraine or in an EEA member associated to Horizon Europe, that are directly or indirectly controlled by a third country other than Ukraine or an EEA member associated to Horizon Europe, or by legal entities of such a third country cannot participate. However, such entities may still be eligible to participate in this call provided that appropriate guarantees are made available to the Commission and approved in accordance with the national procedures of the Member State or EEA member associated to Horizon Europe in which the legal entity is established. More detailes about the Eligible countries are provided in the Work Programme Annex 2. 3. Other Eligibility Conditions In order to apply, your innovation must be within the scope of the priority sectors defined in the STEP regulation, which includes Critical Raw Materials, and further developed in the Digital technologies and deep-tech innovations. This includes advanced semiconductor technologies; artificial intelligence technologies; quantum technologies; advanced connectivity, navigation and digital technologies; advanced sensing technologies; robotics and autonomous systems; Deep-tech innovations (see Glossary). Clean and resource efficient technologies, including net-zero technologies. This includes: solar technologies; onshore wind and offshore renewable technologies; energy storage technologies; heat pumps and geothermal technologies; hydrogen technologies; sustainable biogas and biomethane technologies; carbon capture and storage technologies; electricity grid technologies; nuclear fission technologies, sustainable alternative fuel technologies; hydropower technologies; other renewable technologies; energy system -related energy efficiency technologies; renewable fuels of nonbiological origin technologies; biotech climate and energy solutions; transformative industrial technologies for decarbonisation; CO2 transport and utilisation technologies; wind and electric propulsion technologies; other nuclear technologies; advanced materials, manufacturing and recycling technologies, technologies vital to sustainability such as water purification and desalination; and circular economy technologies. Biotechnologies, including medicinal products on the Union list of critical medicines and their components. Including DNA/RNA; proteins and other molecules; cell and tissue culture and engineering; process biotechnology techniques; Gene and RNA vectors; bioinformatics; and nanobiotechnology. Within the scope of the abovementioned sectors, the EIC STEP Scale up call may support potential dual-use applications, while advancing civilian application use. These technologies are deemed critical where they meet either of the following conditions: they bring to the internal market an innovative, emerging and cutting-edge element with significant economic potential; they contribute to reducing or preventing strategic dependencies of the Union. The Commission Guidance Note, concerning certain provisions of the STEP Regulation adopted in May 2024, provides detailed information on the criticality conditions. This call targets companies raising significant funding rounds and you must demonstrate an initial market interest such that the EIC investment acts as a catalyst for larger funding rounds. You will therefore need to demonstrate that the company already has a precommitment for an equity investment which meets the following elements: The pre-commitment comes from a single qualified investor with demonstrable know-how and experience in the relevant market, technology and jurisdiction and subject to KYC by the EIC Fund or the EIF. The pre-committed investor may be an existing investor in the company and does not necessarily need to be the investor who intends to lead the investment round. The pre-commitment represents at least 20% of the total target funding round you are aiming to raise. Moreover, the portion of the pre-commitment corresponding to at least 20% of the funding round must be fully uninvested as of the date of the pre-commitment letter. Syndicated pre-commitments, as long as no entity’s individual contribution is equal or above the 20% threshold, will be deemed ineligible. The following entities are eligible to apply: A single company classified as a SME or small mid-cap (up to 499 employees) established within a Member State or an Associated Country (see Annex 2). The company may have a holding entity for the purposes of the investment, and this holding company must also be established in a Member State or an Associated Country. An investor may submit a proposal on behalf of an eligible SME or small midcap as defined above, provided that a prior agreement exists with the company. The investment agreement will be signed with the selected SME or small mid-cap. The applicable admissibility and eligibility conditions are detailed in Annex 2 unless otherwise stated in this call. Furthermore, in case of investment support, specific safeguards will be introduced in the investment agreement (see Introduction, section on Economic Security). Concurrent submissions to the EIC Accelerator, the EIC STEP Scale Up calls and EIC STEP Defence call are not permitted; in the event of multiple submissions, only the proposal submitted most recently will be evaluated, and it will be assessed according to the merits and evaluation criteria of its respective call. Specific conditions are described in section VI of the EIC Work Programme 2027. 4. Financial and operational capacity and exclusion Entities eligible to participate Any legal entity, regardless of its place of establishment, including legal entities from non-associated third countries or international organisations (including international European research organisations) is eligible to participate (whether it is eligible for funding or not), provided that the conditions laid down in the Horizon Europe Regulation have been met, along with any other conditions laid down in the specific call / topic. A ‘legal entity’ means any natural or legal person created and recognised as such under national law, EU law or international law, which has legal personality and which may, acting in its own name, exercise rights and be subject to obligations, or an entity without legal personality. Beneficiaries and affiliated entities must register in the Participant Register before submitting their application, in order to get a participant identification code (PIC) and be validated by the Central Validation Service before signing the grant agreement. For the validation, they will be asked to upload the necessary documents showing their legal status and origin during the grant preparation stage. A validated PIC is not a prerequisite for submitting an application. For more information, see Rules for Legal Entity Validation, LEAR Appointment and Financial Capacity Assessment. I nternational European research organisation means an international organisation, the majority of whose members are Member States or Associated Countries, and whose principal objective is to promote scientific and technological cooperation in Europe (Article 2 (15) Regulation (EU) 2021/695). Regulation (EU) 2021/695 of the European Parliament and of the Council of 28 April 2021 establishing Horizon Europe (OJ L 170, 12.5.2021, p. 1). See Article 200(2)(c) EU Financial Regulation 2024/2509. 5a. Evaluation and award: Award criteria, scoring and thresholds Award criteria elements for EIC STEP Scale Up proposals Excellence Innovation – Deep-tech and breakthrough nature: Is the proposed innovation deep-tech in nature stemming from cutting-edge scientific or technological advances? Does it represent a significant improvement in cost or performance compared to existing or alternative solutions? Technological feasibility: Has the technology been developed in a safe, secure and reliable manner? Has it been adequately assessed, validated or certified? Intellectual Property: Does the innovation have adequate IP protection and sound IP strategy to enter the market to be addressed? Impact Market opportunity: What and how big is the market addressed? What is the realistic expectation of the share of the total market? Does the company demonstrate the potential for significant scale-up and market growth? Does the market analysis take into account the current and potential competition? Where relevant, this includes addressable demand across civilian and defence end-users where a credible business case exists in both. Business model: Are the detailed business model and revenue strategy sound? Are the financial projections realistic? STEP Impact: Does the innovation have a clear and measurable positive impact either by: Bringing to the Union’s internal market an innovative, emerging and current-edge innovation with significant economic potential; or reducing or preventing strategic dependencies of the Union. (Note: applicants from Associated Countries will need to demonstrate contributions to the EU internal market or strategic dependencies). Level of risk, implementation, and need for Union support Team capability: Does the company have the necessary team in terms of skills and competences to develop the innovation and scale the company? Does the company have adequate governance and is the team sufficiently incentivised? Have any skills/ competence gaps been identified, including adequate gender balance, with a credible plan to fill the gaps? Risk level of the investment: Does the nature and level of risk of the investment in your innovation mean that European market actors are unwilling to commit the full amount that is needed without an investment from the EIC Fund? Investment leverage: Does the proposal provide a convincing and realistic plan for raising an equity financing round using the EIC Fund investment to attract at least 3-5 times the amount from other investors? What is the anticipated timeline for concluding the financing round? How many investors have committed or are engaged in advanced discussions? How pressing is the timeline for finalising this deal? Risk management: Have the main risks (e.g., technological, market, financial, regulatory) been comprehensively identified, together with measures to take to mitigate them? 5b. Evaluation and award: Submission and evaluation processes Application may be submitted an application to the EIC STEP Scale Up call at any time. The evaluations of applications submitted will be organised with one batch per quarter subject to budget availability: 28/01/2027 29/04/2027 06/09/2027 24/11/2027. You must submit the proposal via the Funding and Tenders Portal. The EIC STEP Scale UP Call may support applications for dual- use innovations. Proposals will be batched at 17h00 Brussels time. Proposals must not contain EU classified information, as defined in the Council Decision 2013/488/EU of 23 September 2013 on the security rules for protecting EU classified information. All personal data and information in the proposal will be kept strictly confidential. However, before submitting the full proposal, the applicant will need to give agreement to share necessary information with the EIC Fund. In addition, the applicant will be asked as part of the application whether the company would be interested in Venture Debt support from InvestEU implementing partners, if the company is awarded a Sovereignty (STEP) Seal. Upon submission, the proposal will be assessed if it meets the eligibility criteria set out above in terms of whether it falls within scope of the STEP technologies; the pre-commitment from a single investor; and the eligibility of the applicant entity. The investment adviser to the EIC Fund may be requested to support the eligibility assessment regarding the pre-commitment from an investor. In cases where a recent Technology Due Diligence report is not already available, this will be conducted by a suitably qualified external expert. If the application meets these requirements, the applicant will be invited to attend a jury interview. It is expected that the applicant will be informed about the interview within approximately 4-6 weeks from the start of the evaluation process following the relevant batching date. 2. Interviews with an EIC Jury If the application passes the eligibility assessment, the applicant will be invited to an interview with an EIC Jury. At the interview, the proposal will be assessed by a Jury of maximum six members (see Glossary). Detailed information about the format of the interview will be communicated to you in the invitation. The applicant will be informed about the result of the interview within approximately two weeks from the end of the interview session. An award decision will be adopted by the Commission, which will authorise a maximum amount of investment by the EIC Fund, which will follow the amount requested in the application, with an additional flexibility amount of maximum EUR 5 million per proposal. The flexibility amount is to enable the EIC Fund to make an investment decision for a higher amount than requested if justified to take account of developments of the company since the date of application and the opportunity of catalysing a larger overall funding round with co-investors. The additional flexibility amount may only be used if there are sufficient amounts available on the EIC Fund accounts (e.g., due to budget available from other investments). The relevant information from the proposal will be passed to the investment adviser for the EIC Fund, to proceed with the detailed due diligence, and subject to a positive due diligence and subsequent EIC Fund Investment Committee decision, the investment agreement. Should the investment due diligence result in a lower investment amount, the released amount will be made available for additional funding under the EIC STEP Scale up call. If the applicant has expressed an interest and given agreement and the company has been awarded a Sovereignty (STEP) Seal following the evaluation, the relevant information from the proposal will be passed to the relevant InvestEU implementing partners to consider for Venture Debt support. How does the EIC decide if a proposal will be selected for a potential investment by the EIC Fund? The proposals will be assessed on its merits by leading experts, and the Commission will ensure open and fair competition to all eligible proposals submitted. The EIC STEP Scale Up call utilizes a "first come, first served" approach to evaluate proposals. However, juries will be asked to take account of overall budget availability for the full year and will be limited to recommend proposals amounting to no more than 70% of the available budget for the calendar year within the first six months of the year. The Jury will be informed about budget availability, including additional amounts that may be available due to previous amounts awarded that were not fully used. In the event that the overall budget available for the full year is entirely allocated by the third batch’s completion, the fourth batch of the year will not take place. Proposals will be assessed according to the award criteria provided in the Work Programme Table 8. The EIC Jury may focus the interview on any element of your proposal based on its own assessment. InvestEU Implementing partners - European Union (europa.eu) 5c. Evaluation and award: Indicative timeline for evaluation and grant agreement It is expected that the applicant will be informed about the result of the interview within approximately two weeks from the end of the interview session. An award decision will be adopted by the Commission, which will authorise a maximum amount of investment by the EIC Fund, which will follow the amount requested in the application, with an additional flexibility amount of maximum EUR 5 million per proposal. The flexibility amount is to enable the EIC Fund to make an investment decision for a higher amount than requested if justified to take account of developments of the company since the date of application and the opportunity of catalysing a larger overall funding round with co-investors. The additional flexibility amount may only be used if there are sufficient amounts available on the EIC Fund accounts (e.g., due to budget available from other investments). The relevant information from the proposal will be passed to the investment adviser for the EIC Fund, to proceed with the detailed due diligence, and subject to a positive due diligence and subsequent EIC Fund Investment Committee decision, the investment agreement. Should the investment due diligence result in a lower investment amount, the released amount will be made available for additional funding under the EIC STEP Scale up call. If the applicant has expressed an interest and given agreement and the company has been awarded a Sovereignty (STEP) Seal following the evaluation, the relevant information from the proposal will be passed to the relevant InvestEU implementing partners to consider for Venture Debt support. Specific conditions described in section VI of the EIC Work Programme 2027. Application and evaluation forms