BRUSSELS, BELGIUM / RankWire.AI / – The European Union has launched the Scaleup Europe Fund, with a target of €5 billion dedicated to key technology companies. On August 4, the European Commission finalized the legal procedures necessary to establish the fund, integrating it within the European Innovation Council Fund. Managed by EQT, the fund now has the autonomy to make investments on market terms without direct oversight. The Commission anticipates initial investments in the upcoming weeks, while fundraising efforts continue towards reaching the €5 billion goal.
The EU has pledged €1 billion, supported by Horizon Europe, with public and private investors contributing capital during the first closing phase. EQT will then pursue further commitments from a wider range of investors. It’s important to note that the €5 billion figure is a fundraising goal rather than a confirmed final fund size; the actual total might be higher or lower. The initial closing amount has not been publicly disclosed. The European Commission will participate under the same financial conditions as other investors.
The fund’s focus is on European scaleups in the technology sector that require significant late-stage funding rounds. It will operate throughout EU member states and eligible associated nations. Investment decisions will be made through a merit-based process aligned with approved guidelines, with governance involving the Commission and other investors. While they will have a say in oversight, they will not control individual deals, leaving EQT responsible for commercial selection and portfolio management. EQT secured the mandate through an open and competitive process.
Structure and Investment Guidelines
Target sectors include artificial intelligence, quantum technology, semiconductors, robotics, and autonomous systems. The mandate also encompasses energy, space, biotechnology, medical technology, advanced materials, and agritech. The fund plans to make investments of approximately €100 million or more, including follow-on funding, and will support private companies starting from Series B. Eligible companies must operate in, or plan to establish themselves within, an eligible country. The scope covers digital and industrial systems as well as life sciences.
EQT will identify potential investments and manage engagement with prospective companies. The selection process will be open, transparent, and merit-based. Prior support from European Innovation Council programs does not automatically guarantee an advantage. However, existing EIC portfolios may still serve as sources for potential deals. This new fund is positioned above smaller EIC financing tools in terms of investment size, with current EIC STEP support providing up to €30 million per company. EQT will provide additional details on engagement as the fund begins active investment.
Initial Investors and Policy Context
Key founding investors include Novo Holdings, EIFO, CriteriaCaixa, Santander, and Mouro Capital. Italian contributors involve 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 committed its own capital to the fund, with additional investors expected to participate after the first closing. The group represents a mix of pension funds, foundations, banks, and investment firms.
The Scaleup Europe Fund is an integral 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 purpose is to boost growth capital for European technology companies with high growth potential. According to the Commission, many fast-growing firms have turned to larger financing rounds outside Europe. No specific companies or investment amounts have been disclosed yet; EQT will choose initial recipients based on the fund’s commercial guidelines.