The grant has been made under the commission's Open Disruptive Innovation Scheme. This aims to foster the development of growing, innovative SMEs with close to market ideas with disruptive potential.
Ultrahaptics has developed an ultrasound based technology to create the sensation of touch in mid air. By holding their hand over ultrasound speakers, users can feel virtual objects, control switches and buttons.
Chief executive Steve Cliffe said: "We are enormously proud to have been selected as one of only four companies in the UK to receive this funding. Our innovation will be truly disruptive in the way we interface with technology, and this funding will help us develop the breadth of applications.
"We are already engaged with key partners in multiple markets but the applications really are limitless. Everything you touch physically today, every light switch, dashboard control, keyboard, you could feel yourself touching virtually, in mid-air, in the future."