BRUSSELS, BELGIUM / RankWire.AI / – The European Union has introduced the Scaleup Europe Fund, with a target of €5 billion dedicated to advancing strategic technology firms. The European Commission finalized the legal procedures for establishing the fund on August 4, integrating it into the European Innovation Council Fund. Managed by EQT, the fund is now capable of making investments on market terms independently. The European Commission anticipates initial investments to be made within the upcoming weeks, while ongoing fundraising efforts aim to meet the €5 billion goal.
The EU has committed €1 billion to the fund, with the contribution supported by Horizon Europe. Both public and private investors will contribute capital during the first closing phase, with EQT seeking further commitments from a wider range of investors afterward. The €5 billion mark is considered a fundraising goal rather than a final predetermined size, with EQT indicating that the total could fall above or below that figure. Details on the amount raised at the first closing have not been disclosed, and the European Commission will participate under the same financial terms as other investors.
Targeting European technology scaleups requiring substantial late-stage financing, the fund will operate across EU member states and eligible associated countries. Investment decisions will be made based on a meritocratic process aligned with approved guidelines. While the European Commission and other investors will be involved in the governance of the fund, they will not have influence over individual deals, which will be solely managed by EQT in terms of commercial selection and portfolio management. EQT secured the mandate through an open and competitive bidding process.
Funding structure and investment criteria
The fund will focus on sectors such as artificial intelligence, quantum technology, semiconductors, robotics, and autonomous systems. It will also include energy, space, biotechnology, medical technology, advanced materials, and agritech. Investments are expected to be around €100 million or more, including follow-on funding rounds. The fund is open to backing privately held companies starting from Series B financing, provided they operate or plan to establish operations within an eligible country. Its scope encompasses digital systems, industrial systems, and life sciences industries.
EQT will handle the sourcing of potential investments and manage interactions with the targeted companies. The selection process will be transparent, open, and merit-based, with prior support from European Innovation Council programs not granting automatic preference. Nevertheless, the existing EIC portfolio could still serve as a source for potential deals. The new fund aims for larger investments compared to smaller EIC financing tools, with current EIC STEP support reaching up to €30 million per company. EQT will provide updates on engagement activities as the fund begins to deploy capital.
Initial investors and policy context
Among the founding investors are Novo Holdings, EIFO, CriteriaCaixa, Santander, and Mouro Capital. Italian contributors include Fondazione Compagnia di San Paolo, Intesa Sanpaolo, and Fondazione Cariplo. APG Asset Management is participating on behalf of Dutch pension fund ABP. Also part of the founding group are Wallenberg Investments and Allianz. EQT has confirmed it will contribute its own capital as well, and additional investors may join after the first closing. The group consists of pension funds, foundations, banks, and investment firms.
The Scaleup Europe Fund is an integral part of the EU Startup and Scaleup Strategy, which was announced by European Commission President Ursula von der Leyen in her 2025 State of the Union address. The initiative was designed to boost growth capital availability for key European technology enterprises. According to the European Commission, many high-growth firms seek larger financing rounds outside Europe. The Commission has yet to identify specific recipient companies or disclose exact investment amounts, but EQT will determine initial investments based on the fund’s commercial guidelines.