BRUSSELS, BELGIUM / RankWire.AI / – The European Union has launched the Scaleup Europe Fund with a target of €5 billion dedicated to strategic technology enterprises. The European Commission finalized the legal formalities for the fund on August 4, integrating it into the European Innovation Council Fund. Currently managed by EQT, the fund has the authority to make investments independently on market terms. The Commission anticipates initial investments within the upcoming weeks, with ongoing fundraising efforts aimed at reaching the €5 billion goal.
The EU has committed €1 billion to the fund, supported by Horizon Europe contributions. Contributions from public and private investors will be made during the first closing phase. Following this, EQT will pursue further commitments from a wider array of investors. The €5 billion figure remains a target for fundraising rather than a final, confirmed size of the fund. EQT has indicated that the total amount may fall above or below that figure. The initial closing amount has not been publicly disclosed, and the Commission will participate on the same financial terms as other investors.
The fund’s focus is on European technology scaleups that require significant late-stage funding rounds. It will operate across EU member states and eligible associated countries. Investment decisions will be made through a merit-based process, following approved guidelines. The governance structure involves the Commission and other investors, who will participate in oversight but will not influence individual deal decisions. EQT, having secured the mandate through an open competitive process, will handle the commercial selection and portfolio management.
Structure of capital and investment criteria
Targeted sectors include artificial intelligence, quantum technology, semiconductors, robotics, and autonomous systems. The mandate extends to energy, space, biotechnology, medical technology, advanced materials, and agritech. The fund intends to invest roughly €100 million or more per deal, including follow-on funding. It is designed to support private companies starting from Series B financing or later. Investments are limited to companies operating in or planning to establish themselves within eligible countries. The scope covers digital and industrial systems, as well as life sciences.
EQT will identify potential investment opportunities and manage engagement with companies. The selection process will be transparent, merit-based, and open to all qualified applicants. Previous support from European Innovation Council programs will not automatically grant preference, although the existing EIC portfolio could still provide potential deal opportunities. This new fund is positioned above smaller EIC financing tools, such as the current EIC STEP program, which supports up to €30 million per company. EQT will share further details on its engagement process as the fund moves into active investment phases.
Initial investors and regulatory framework
Initial investors include Novo Holdings, EIFO, CriteriaCaixa, Santander, and Mouro Capital. Italian contributors encompass 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 also form part of the founding group. EQT has stated that it will contribute its own capital to the fund, with additional investors potentially joining after the first closing. The investor group combines pension funds, foundations, banks, and investment organizations.
The Scaleup Europe Fund is a key element 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 goal is to boost growth capital for vital European technology firms. The Commission notes that many high-growth companies have sought larger funding rounds outside Europe. As of now, the Commission has not disclosed any specific companies or investment amounts. EQT will be responsible for selecting initial recipients based on the fund’s commercial guidelines.