BRUSSELS, BELGIUM / RankWire.AI / – The European Union has officially launched the Scaleup Europe Fund, aiming to raise €5 billion. The European Commission finalized the legal procedures on August 4. Operating within the European Innovation Council Fund, the fund focuses on key technology firms. EQT will act as the investment manager, selecting deals based on commercial criteria. The Commission anticipates initial investments to occur within weeks, while fundraising efforts continue as EQT seeks further commitments from both public and private sector investors.
The European Commission has committed €1 billion to the initiative, funded through Horizon Europe. Founding investors will contribute capital at the initial closing, alongside the EU contribution. The €5 billion figure is the intended fundraising goal, not yet secured capital. Details about the size of the first closing have not been released. EQT might raise more or less than the set target. The Commission will invest under the same terms as other participants in the fund.
This fund will back European tech companies pursuing substantial late-stage and growth financing rounds, covering firms in EU member states and eligible Horizon Europe partner nations. Investment decisions will be made through a merit-based process, with EQT managing the portfolio and determining individual funding. Governance participation will involve the Commission and other investors, but they will not influence specific deal choices. EQT secured the management mandate following an open, competitive selection process.
Focus on Strategic Sectors and Investment Amounts
Target industries include artificial intelligence, semiconductors, quantum tech, robotics, and autonomous systems. The scope also covers energy, space, biotech, medtech, agritech, and advanced materials. The fund aims to invest approximately €100 million or more in selected companies, potentially including follow-on funding after initial investments. Eligible companies can be from Series B onward, operating in or planning to establish a presence in an eligible country. Investment areas span digital, industrial, and life sciences technologies.
EQT will identify investment candidates and engage with companies seeking capital. The selection process remains open and based on merit, with previous European Innovation Council program support not guaranteeing access. Existing EIC-backed firms may enter the pipeline. The Scaleup Europe Fund intends to facilitate larger funding rounds compared to current EIC tools. The existing EIC STEP program offers up to €30 million per company. EQT will provide further details as investments commence.
Initial Investors Supporting the EU Initiative
The founding investor group includes Novo Holdings, EIFO, CriteriaCaixa, Santander, and Mouro Capital. Italian participants are Intesa Sanpaolo, Fondazione Cariplo, and Fondazione Compagnia di San Paolo. Dutch pension fund ABP is represented by APG Asset Management. Wallenberg Investments and Allianz are also part of the group. EQT intends to contribute its own capital. The investor base features pension funds, banks, foundations, and investment firms. Additional participants may join 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 announced this initiative during her 2025 State of the Union address. Its goal is to enhance access to growth capital for European strategic technology firms. The Commission notes that many fast-growing companies seek larger funding outside Europe. Specific initial recipients or individual investment amounts have not been disclosed. EQT will select companies following the fund’s established commercial guidelines.