BRUSSELS, BELGIUM / RankWire.AI / – The European Union has officially launched the Scaleup Europe Fund, setting a target of raising €5 billion. The European Commission finalized the legal framework for the fund on August 4. Operating within the European Innovation Council Fund, it concentrates on strategic technology firms. EQT has been appointed as the investment manager and will select deals under commercial terms. The Commission anticipates initial investments in the coming weeks, with ongoing fundraising efforts as EQT seeks further commitments from both public and private investors.
A €1 billion contribution from the European Commission, supported by Horizon Europe funding, underpins the initiative. Founding investors will provide capital at the initial closing alongside the EU’s commitment. The €5 billion figure signifies the fundraising goal, not yet secured capital. The specifics of the first closing remain undisclosed, and EQT might raise more or less than the stated target. The European Commission will invest under the same financial conditions as other participants in the fund.
The fund aims to back European technology enterprises pursuing substantial late-stage and growth financing rounds. It includes businesses based in EU member states and eligible Horizon Europe partner countries. Investment decisions will be made through a merit-based process evaluated by EQT, which will also oversee the portfolio and individual funding choices. Governance participation will involve the Commission and other investors, but they will not influence specific deal decisions. EQT secured the management mandate following an open, competitive selection process.
Focus on strategic sectors and investment amounts
Eligible industries encompass artificial intelligence, semiconductors, quantum technology, robotics and autonomous systems. The mandate also includes energy, space, biotechnology, medical technology, agritech and advanced materials. The fund expects to invest approximately €100 million or more in selected companies, potentially including follow-on funding after initial investments. Companies can qualify starting from Series B, provided they operate within an eligible country or plan to establish operations there. The investment scope spans digital, industrial, and life sciences technologies.
EQT will identify investment prospects and handle negotiations with companies seeking funding. The process will remain open and based on investment merit. Prior support from European Innovation Council programs does not guarantee access to the new fund, although companies backed by the EIC may be considered for inclusion. The Scaleup Europe Fund aims for larger funding rounds than current EIC initiatives, with existing EIC STEP support offering up to €30 million per company. Further details will be shared as the investment activity progresses.
Initial investors support EU’s growth strategy
The founding investor group features Novo Holdings, EIFO, CriteriaCaixa, Santander and Mouro Capital. Italian contributors include Intesa Sanpaolo, Fondazione Cariplo and Fondazione Compagnia di San Paolo. Dutch pension fund ABP is represented by APG Asset Management. Wallenberg Investments and Allianz also participate. EQT intends to contribute its own capital to the fund. The investor group comprises pension funds, banks, foundations and investment organizations. Additional participants may join in future fundraising rounds.
The Scaleup Europe Fund is part of the EU Startup and Scaleup Strategy. European Commission President Ursula von der Leyen announced the initiative during her 2025 State of the Union address. The fund’s goal is to broaden access to growth capital for European strategic technology businesses. The Commission has observed that many fast-growing companies seek larger funding rounds outside Europe. The initial recipients and specific investment amounts have not been disclosed. EQT will select companies according to the fund’s approved commercial guidelines.