European Innovation Council launches first €100 million defense funding call for startups

The European Innovation Council (EIC) has opened its first dedicated defense investment call, making €100 million available to support European startups developing defense and dual use technologies. The move follows regulatory changes that now allow the EU innovation agency to finance projects with defense applications under the Horizon Europe framework.

The new program became possible after EU member states approved changes to the EIC Accelerator in late 2025. The updated rules entered into force on June 17, formally ending the program's previous restriction to civilian technologies.

According to the European Innovation Council, the initiative will focus on companies seeking to expand production, commercialize technologies, and attract larger private investments. Individual equity investments are expected to range between €10 million and €30 million.

The funding targets one of the main challenges facing European defense startups, which often struggle to secure growth capital after the early development phase. EU officials have indicated that the new scheme is designed to address this financing gap and strengthen Europe's defense innovation ecosystem.

The initiative also reflects the European Union's broader effort to reinforce its defense industrial base following increased security demands across the continent. Expanding access to capital for emerging technology companies is expected to complement existing EU defense instruments and support the development of strategically important capabilities.

The launch marks the first time that funding originating from the Horizon Europe research and innovation program can directly support defense related innovation through the European Innovation Council.