BRUSSELS, BELGIUM / RankWire.AI / – The European Union has officially launched the Scaleup Europe Fund with a target of raising €5 billion. The European Commission finalized the necessary legal procedures on August 4. The fund is managed under the European Innovation Council Fund and concentrates on strategic technology firms. EQT will act as the investment manager, selecting deals based on commercial terms. The Commission anticipates initial investments within a few weeks, with fundraising ongoing as EQT seeks further commitments from both public and private sector investors.
The European Commission has pledged €1 billion to this project, supported by funding from Horizon Europe. Contributions from founding investors will be made at the initial closing, alongside the EU’s contribution. The €5 billion figure represents the fundraising target rather than guaranteed capital. Officials have yet to disclose the amount raised at the first closing, and EQT may raise more or less than the stated goal. The Commission will participate under the same financial conditions as other fund members.
This fund aims to back European technology enterprises seeking substantial late-stage and growth funding rounds. It encompasses companies based in EU member states and eligible Horizon Europe partner nations. Investment decisions will be made through a merit-based process overseen by EQT, which will also manage the portfolio and approve individual funding deals. While the Commission and other investors will be involved in governance, they will not influence specific deal choices. EQT earned the management mandate following a competitive, open selection process.
Focus on strategic technologies and funding levels
Eligible sectors include artificial intelligence, semiconductors, quantum technology, robotics, and autonomous systems. The scope also covers energy, space, biotechnology, medical technology, agritech, and advanced materials. The fund plans to invest approximately €100 million or more in selected firms, which may include follow-on funding after initial investments. Companies can qualify from Series B onwards, provided they operate in an eligible country or plan to establish operations there. The investment focus spans digital, industrial, and life sciences technologies.
EQT will identify potential investments and engage in discussions with companies seeking capital. The selection process will remain open and based on merit. Previous backing from European Innovation Council programs will not guarantee access to the new fund, although companies supported by the EIC may be considered. The Scaleup Europe Fund is designed to support larger funding rounds than those currently available through existing EIC tools, which offer up to €30 million per company via EIC STEP. Further details will be announced as investment activity ramps up.
Initial investors support EU’s startup growth plan
The founding investor group includes Novo Holdings, EIFO, CriteriaCaixa, Santander, and Mouro Capital. Italian contributors include Intesa Sanpaolo, Fondazione Cariplo, and Fondazione Compagnia di San Paolo. APG Asset Management joins on behalf of Dutch pension fund ABP. Wallenberg Investments and Allianz are also part of the initial group. EQT intends to contribute its own capital as well. The investor base comprises pension funds, banks, foundations, and investment firms. Additional investors might participate in future fundraising rounds.
The Scaleup Europe Fund is a component of the EU Startup and Scaleup Strategy. European Commission President Ursula von der Leyen introduced this initiative during her 2025 State of the Union address. Its purpose is to increase access to growth capital for European strategic technology firms. The European Commission has noted that many rapidly expanding companies seek larger funding rounds outside Europe. No specific companies or investment amounts have been disclosed at this stage. EQT will select investments in accordance with the fund’s approved commercial guidelines.