BRUSSELS, BELGIUM / RankWire.AI / – The European Union has officially introduced the Scaleup Europe Fund, aiming to gather €5 billion in funding. The European Commission finalized the necessary legal procedures on August 4. Operating within the framework of the European Innovation Council Fund, the fund’s focus is on strategic technology enterprises. EQT has been appointed as the investment manager and will evaluate deals on commercial terms. The Commission anticipates the first investments will be made within a few weeks. Efforts to raise additional funds will persist as EQT seeks further commitments from both public and private sector investors.
The European Commission has committed €1 billion to this initiative through Horizon Europe-backed funding. Initial capital contributions will come from founding investors alongside the EU’s contribution at the first closing. The €5 billion figure reflects the target fundraising amount, not the amount already secured. Authorities have yet to disclose the amount raised at the initial closing. EQT might raise more or less than the stated goal. The Commission will participate under the same financial terms as other fund investors.
The fund aims to back European tech firms seeking substantial late-stage and growth financing rounds. It encompasses companies based in EU member states as well as eligible Horizon Europe partner nations. Companies will undergo a merit-based evaluation process by EQT, which will also oversee the investment portfolio and make individual funding decisions. While the Commission and other investors will have governance roles, they will not influence specific deal decisions. EQT secured the management mandate following an open, competitive selection process.
Target sectors and investment magnitude
Eligible industries include artificial intelligence, semiconductors, quantum tech, robotics and autonomous systems. The mandate also covers energy, space, biotechnology, medical tech, agritech and advanced materials. The fund plans to invest approximately €100 million or more in selected firms, which may include follow-on funding after initial investments. Companies can qualify from Series B onward, provided they operate in an eligible country or plan to establish a presence there. Investment scope spans digital, industrial and life sciences technologies.
EQT will identify potential investments and manage communications with companies seeking funding. The selection process remains open and based solely on investment merit. Past support from European Innovation Council programs does not guarantee access to the new fund, though existing EIC-backed firms may enter the pipeline. The Scaleup Europe Fund targets larger funding rounds compared to current EIC tools, which offer up to €30 million per company via the EIC STEP program. EQT will provide further details as investment activities commence.
Initial investors in the EU initiative
The founding investor group includes Novo Holdings, EIFO, CriteriaCaixa, Santander and Mouro Capital. Italian participants comprise Intesa Sanpaolo, Fondazione Cariplo and Fondazione Compagnia di San Paolo. On behalf of Dutch pension fund ABP, APG Asset Management is joining. Wallenberg Investments and Allianz are also part of the initial group. EQT intends to contribute its own capital to the fund. The investor base combines pension funds, banks, foundations and investment organizations. Additional participants might join in subsequent fundraising rounds.
The Scaleup Europe Fund is an integral 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 expand access to growth capital for European strategic technology companies. The Commission has pointed out that many rapidly growing firms seek larger funding rounds outside Europe. No details have been provided regarding the first recipients or specific investment amounts. EQT will select companies based on the fund’s approved commercial guidelines.