European Innovation Council Selects Eight Companies for Major Scale-Up Funding
Brussels, Tuesday, 28 April 2026.
The European Innovation Council has chosen eight promising European startups to receive between €10-30 million in scale-up investments through its STEP Scale scheme. Selected from 44 applicants, these companies span seven countries and could collectively receive up to €146.5 million in funding. The initiative specifically targets the notorious funding gap that European tech companies face during expansion phases, with the goal of leveraging additional private investment to achieve total financing rounds of €50-150 million per company.
Selected Companies Span Diverse Technology Sectors
The eight companies chosen for the STEP Scale Up scheme represent a cross-section of Europe’s most promising deep-tech sectors. From Germany, Aignostics and Reverion secured funding, while France contributed Alice & Bob to the selection [1]. Bulgaria’s Endurosat, Denmark’s Luabio and Greenland Resources, Spain’s Payload Aerospace, and the Netherlands’ Quantware complete the roster of beneficiaries [1]. The selection process proved highly competitive, with only 18.182 percent of the 44 initial applicants ultimately receiving funding approval [1]. Before reaching the final selection, 28 companies were invited to present their cases through interviews conducted by independent high-level experts [1].
Addressing Europe’s Critical Scale-Up Challenge
The STEP Scale Up scheme directly targets what industry experts term the ‘valley of death’ - the challenging transition period when promising startups struggle to secure sufficient funding to scale their operations from prototype to market [GPT]. The program’s €300 million budget for 2026 demonstrates the European Commission’s recognition of this critical funding gap [1]. Unlike traditional venture capital, the EIC’s approach combines direct equity investment with strategic support designed to attract private co-investment [1]. The scheme operates on a continuously open basis through the Funding & Tenders portal, allowing companies to apply throughout the year rather than waiting for specific deadline windows [1].
Investment Structure and Future Prospects
Each selected company will receive between €10-30 million in direct investment from the EIC Fund, with the total combined equity investments potentially reaching €146.5 million if all negotiations proceed successfully [1]. The program’s ultimate objective extends beyond these initial investments, aiming to leverage private sector participation to achieve total financing rounds of €50-150 million or more per company [1]. Additionally, 18 other excellent companies that did not receive direct funding were awarded the STEP Seal, a designation designed to facilitate access to alternative funding sources and EIC Business Acceleration Services [1]. All selected investments remain subject to due diligence processes and successful contract negotiations, with companies having been notified of their selection as of April 27, 2026 [1].
Broader Context of European Innovation Funding
This announcement occurs within the broader framework of the European Innovation Council’s expanded 2026 funding initiatives, which total over €1.4 billion across five different schemes including Pathfinder, Transition, Advanced Innovation Challenges, Accelerator, and STEP Scale-Up [4]. The EIC’s comprehensive approach supports innovation across the entire development lifecycle, from early-stage research through Technology Readiness Levels 1-4 in Pathfinder programs, to market-ready scale-up support through STEP [4]. Recent program modifications for 2026 include increased Pathfinder grant ceilings to €4 million and enhanced due diligence processes with dedicated Technology Expert interviews [4]. These changes reflect the EIC’s ongoing evolution to better serve European innovators and maintain the continent’s competitive position in global technology markets [4].