BRUSSELS, BELGIUM / RankWire.AI / – The European Union has initiated the Scaleup Europe Fund, aiming to raise €5 billion to support key technology firms. The European Commission finalized the legal steps for the fund on August 4, integrating it into the European Innovation Council Fund. Currently managed by EQT, the fund can now operate independently and make investments on market terms. The Commission anticipates the first investments will occur within the upcoming weeks, with ongoing efforts to reach the €5 billion fundraising target.
The EU has allocated €1 billion for the fund, with the contribution supported by Horizon Europe. Initial capital commitments will come from both public and private investors during the first closing. Afterward, EQT will seek additional funding from a wider investor base. The €5 billion mark remains a target rather than a guaranteed final size, with EQT indicating the total may be higher or lower. The amount raised at the first closing has not been disclosed, and the Commission will participate on the same financial terms as other investors.
The fund aims to assist European technology scaleups requiring substantial late-stage funding rounds. It will operate across EU member states and eligible associated countries. EQT will select investments based on a meritocratic process aligned with approved guidelines. Both the European Commission and other investors will have a say in the fund’s governance, but they will not influence individual deal decisions—EQT will handle the commercial selection and portfolio management. The mandate was awarded to EQT through a transparent, open competition process.
Investment structure and eligibility criteria
The fund’s targeted sectors include artificial intelligence, quantum technology, semiconductors, robotics, and autonomous systems. It also encompasses energy, space, biotechnology, medical technology, advanced materials, and agritech. The fund intends to make investments of approximately €100 million or more, including follow-on rounds, and will support privately owned companies from Series B onward. Eligible companies must operate within or plan to establish themselves in an eligible country. The scope of investments covers digital and industrial systems as well as life sciences.
EQT will identify potential investments and oversee interactions with target companies. Selection will be conducted through an open, transparent, merit-based process. Prior support from European Innovation Council programs will not guarantee priority, though the existing EIC portfolio might still be a source of potential deals. The new fund is positioned above smaller EIC financing initiatives, such as the current EIC STEP support of up to €30 million per company. Further details about engagement will be shared by EQT as the fund advances into active investment phases.
Initial investors and policy context
The founding investors include Novo Holdings, EIFO, CriteriaCaixa, Santander, and Mouro Capital. Italian contributors comprise Fondazione Compagnia di San Paolo, Intesa Sanpaolo, and Fondazione Cariplo. APG Asset Management joins on behalf of Dutch pension fund ABP. Wallenberg Investments and Allianz are also part of the founding group. EQT has committed its own capital to the fund, and additional investors may participate following the first closing. The investor group blends pension funds, foundations, banks, and investment firms.
The Scaleup Europe Fund is a key component of the EU Startup and Scaleup Strategy. European Commission President Ursula von der Leyen introduced it in her 2025 State of the Union address. The initiative aims to increase growth capital for strategic European technology enterprises. According to the Commission, many high-growth companies have sought larger financing rounds outside Europe. The Commission has not yet announced any specific recipient companies or disclosed exact investment amounts. EQT will select the initial recipients under the fund’s commercial guidelines.