BRUSSELS, BELGIUM / RankWire.AI / – The European Union has initiated the Scaleup Europe Fund, aiming to raise €5 billion for key technology firms. The European Commission finalized the legal procedures for the fund on August 4, establishing it within the European Innovation Council Fund. Currently managed by EQT, the fund can now operate independently and make investments on market terms. The European Commission anticipates initial investments in the upcoming weeks, with ongoing efforts to reach the €5 billion fundraising target.
The EU has allocated €1 billion of the total, with backing from Horizon Europe to support the EU contribution. Both public and private investors will provide capital during the first closing phase. Following this, EQT intends to attract additional commitments from a broader range of investors. While €5 billion remains the target, the fund’s final size may fluctuate above or below that figure, as officials have not yet disclosed the amount secured at the first closing. The European Commission will participate under the same financial conditions as other investors.
The fund focuses on European scaleups in the technology sector that require substantial 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 aligned with approved guidelines, with EQT responsible for selecting deals. The European Commission and other investors will be involved in the fund’s governance, but they will not influence individual deal choices. EQT secured the mandate through a competitive, open process.
Investment framework and sector eligibility
Eligible sectors include artificial intelligence, quantum technology, semiconductors, robotics, and autonomous systems. The scope extends to energy, space, biotechnology, medical technology, advanced materials, and agritech. The fund plans to invest approximately €100 million or more per deal, including follow-on financings. It can invest in privately owned companies from Series B stage onwards. Companies must operate in, or plan to establish themselves within, an eligible country. The investment focus encompasses digital systems, industrial systems, and life sciences.
EQT will identify potential investments and oversee engagement with target companies. The selection process will be transparent, merit-driven, and open to competition. Past support from European Innovation Council programs will not guarantee preference, although the existing EIC portfolio may still serve as a source of potential deals. The new fund aims to handle larger investments than existing EIC tools, with current EIC STEP support offering up to €30 million per company. Further details on engagement will be shared as the fund progresses into active investment phases.
Initial investors and regulatory context
Among the founding investors are Novo Holdings, EIFO, CriteriaCaixa, Santander, and Mouro Capital. Italian backers include Fondazione Compagnia di San Paolo, Intesa Sanpaolo, and Fondazione Cariplo. APG Asset Management joins on behalf of Dutch pension fund ABP, alongside Wallenberg Investments and Allianz. EQT has committed its own capital to the fund, with additional investors expected to join post-initial closing. The group comprises pension funds, foundations, banks, and investment firms.
The Scaleup Europe Fund aligns with the EU Startup and Scaleup Strategy, which European Commission President Ursula von der Leyen announced in her 2025 State of the Union address. The initiative aims to enhance growth capital availability for strategic European tech companies. According to the Commission, many high-growth firms have sought larger financing rounds outside of Europe. The Commission has not yet disclosed specific companies or investment amounts, but EQT will select initial recipients based on the fund’s commercial guidelines.