EU programmes · European Commission, DG DEFIS (Directorate-General for Defence Industry and Space)
The EDF is the EU's primary instrument for supporting collaborative defence research and capability development across Member States, with a budget of approximately €7.3 billion for 2021–2027 (€2.7 billion for research, €5.3 billion for capability development). Funding is delivered primarily through competitive grants covering up to 100% of eligible research costs, with bonuses for SME participation and PESCO-linked projects. It operates via annual work programmes structured across 34 thematic categories, targeting industrial and research consortia. Recent amendments have simplified application procedures for disruptive technologies and introduced a STEP Seal for high-quality proposals to unlock complementary funding.
With roughly €1 billion deployed per annual cycle, the EDF is one of the largest single sources of non-dilutive R&D funding available to European defence-tech companies and SMEs. The 2026 work programme amendments have halved application length and reduced award criteria, significantly lowering the barrier to entry for smaller firms. Companies awarded a STEP Seal gain access to additional complementary EU funding streams, making EDF participation a gateway to the broader EU defence-funding ecosystem.
European Commission (DG DEFIS), with EUSPA and the EIF
Space is treated as dual-use across EU funding; CASSINI gives space-defence start-ups an equity pipeline and visibility instruments that stack with EDF and EUDIS applications.
European Investment Fund with the European Commission, under InvestEU
Not a programme you apply to as a company, but it determines which European VCs have fresh defence-mandated capital; track its fund commitments to know who can actually write you a cheque.
European Investment Bank Group
Debt, not grants: the EIB now finances defence companies that banks still avoid, and venture debt from its one-stop shop can extend runway without dilution once you have revenue or strong contracts.