Axelera AI and Xeltis secure EU scaleup funding
Two Dutch companies, Axelera AI and Xeltis, receive investment from the European Innovation Council.
Published on April 3, 2025
Team IO+ selects and features the most important news stories on innovation and technology, carefully curated by our editors.
Axelera AI and Xeltis are among the seven European companies that will receive funding through the European Innovation Council (EIC) STEP Scale Up Scheme. The two Eindhoven-based companies passed the evaluation phase. They will get an investment of between €10 and €30 million each, aiming to leverage private co-investment and achieve financing rounds of €50 to €150 million or more.
The two companies operate in two strategic areas. Axelera AI is developing hardware to empower edge AI applications. Its chips are designed for generative AI and computer vision inference. Xeltis is a medtech company and is developing living implants that enable the body to restore cardiovascular function. The Step Scale Up scheme aims to address the funding gap that European companies face at the scale up phase.
Support to scaleups
After passing the evaluation phase of the EIC Strategic Technologies for Europe Platform (STEP) Scale Up call, they will now go forward to the EIC Fund for investment decisions, subject to due diligence.
The Commissioner for Startups, Research and Innovation, Ekaterina Zaharieva, said: “The STEP Scale Up scheme is a game-changer for high-growth businesses, offering the vital resources, funding, and expert guidance needed to accelerate expansion. By unlocking powerful networks and strategic support, it empowers companies to break through growth barriers, spark innovation, and fuel economic success.”
The other selected companies
In addition to Axelera and Xeltis, five more companies passed the selection. These are:
- Focused Energy (DE) - fusion fuel designed for clean energy production, derived from seawater & lithium.
- Infinite Orbits (FR) - Europe’s first commercial provider of autonomous in-orbit servicing and AI-powered space surveillance.
- IQM Finland (FI) - quantum computing leader with a production milestone of 30 quantum computers and a roadmap to 1 million qubits by 2033
- Pasqal (FR) – Developer of a full-stack quantum computing technology designed to simulate complex phenomena for scientific discovery.
- Zadient Technologies (FR) - developing ultra-pure silicon carbide (SiC) materials and high-yield crystal growth technology to establish Europe's first industrial-scale SiC wafer production — a cornerstone for EVs, renewables, and semiconductor resilience.
These companies, along with four others deemed excellent but lacking sufficient budget, will be awarded the STEP Seal. This seal will ease their access to additional or alternative funding and EIC Business Acceleration Services.
The EIC STEP Scale Up call is open year-round, with quarterly evaluation sessions. The call has a budget of €300 million for 2025, expected to increase to €900 million over the 2025-2027 period.
