BRUSSELS, BELGIUM / RankWire.AI / – The European Union has launched the Scaleup Europe Fund, aiming to raise €5 billion to support key technology firms. The European Commission finalized the legal formalities for the fund on August 4, placing it within the European Innovation Council Fund. Managed by EQT, the fund will operate independently and make investments on market terms. The Commission anticipates initial investments in the upcoming weeks, with ongoing efforts to reach the €5 billion fundraising target.
The EU has committed €1 billion of the total, with contributions from Horizon Europe backing the initiative. Both public and private investors will contribute capital at the first closing. EQT plans to seek further commitments from a broader group of investors afterward. The €5 billion figure is a target for fundraising, not a guaranteed final fund size, with EQT indicating the total might be above or below that amount. The initial closing sum has not been disclosed, and the Commission participates under the same financial terms as other investors.
This fund is intended to support European technology scaleups requiring substantial late-stage financing. It will operate throughout EU member states and eligible associated countries. EQT will evaluate investments through a merit-based process aligned with approved investment guidelines. Governance will involve both the Commission and other investors, though they will not influence individual deal decisions. EQT will be responsible for selecting and managing portfolio companies. The firm secured the mandate through a competitive, open process.
Details on capital structure and investment policies
Targeted sectors include artificial intelligence, quantum technology, semiconductors, robotics, and autonomous systems. The fund will also focus on energy, space, biotechnology, medical technology, advanced materials, and agritech. Investment amounts are expected to be approximately €100 million or more, including follow-on rounds. It will support privately owned companies starting from Series B funding, provided they are based in or plan to establish operations within an eligible country. The scope covers digital systems, industrial systems, and life sciences.
EQT will identify potential investments and manage ongoing engagement with portfolio companies. The selection process will be transparent, merit-based, and open. Previous support from European Innovation Council programs does not grant automatic preference, although the existing EIC portfolio could be a source of deal opportunities. The new fund is designed to surpass smaller EIC financing instruments, which currently offer support up to €30 million per company through the EIC STEP program. EQT will share more details on engagement as the fund begins deploying capital.
Founders and policy context
Initial investors include Novo Holdings, EIFO, CriteriaCaixa, Santander, and Mouro Capital. Italian contributors involve Fondazione Compagnia di San Paolo, Intesa Sanpaolo, and Fondazione Cariplo. Dutch pension fund ABP’s representative, APG Asset Management, is participating, along with Wallenberg Investments and Allianz. EQT also plans to contribute its own capital and expects other investors to join after the first closing. The group comprises pension funds, foundations, banks, and investment firms.
The Scaleup Europe Fund is part of the EU Startup and Scaleup Strategy, announced by European Commission President Ursula von der Leyen during her 2025 State of the Union address. This initiative aims to boost growth capital for strategic European tech firms. According to the Commission, many high-growth companies have looked outside Europe for larger financing rounds. The Commission has yet to name specific companies or disclose detailed investment figures. EQT will determine the first recipients based on the fund’s commercial guidelines.