BRUSSELS, BELGIUM / RankWire.AI / – The European Union has officially launched the Scaleup Europe Fund, setting a goal of raising €5 billion to support key technological firms. The European Commission finalized the legal steps necessary for the fund’s establishment on August 4, which placed it within the European Innovation Council Fund. Currently managed by EQT, the fund has the authority to make independent investments on market terms, with the European Commission expecting the first deployments of capital in the upcoming weeks. Efforts to raise additional funds will persist until the €5 billion target is achieved.
Initially, the Commission committed €1 billion, with the backing of Horizon Europe, to contribute to the fund. Contributions from public and private investors will be made at the first closing, after which EQT plans to seek further commitments from a wider investor base. It is important to note that the €5 billion figure is a target for fundraising, not an absolute final size; EQT has indicated the total may fall above or below that figure, and the initial closing amount has not been publicly disclosed. The Commission is participating on the same financial terms as other investors in the fund.
Targeting European scaleups in the technology sector that require substantial late-stage financing rounds, the fund will operate across the EU member states and eligible associated nations. Investments will be selected through a merit-based process aligned with approved guidelines, with the governance involving the Commission and other investors. However, the decision on individual deals will be left to EQT, which is responsible for commercial selection and portfolio management. The mandate was awarded to EQT following an open, competitive process.
Investment structure and guidelines
The fund’s scope encompasses sectors such as artificial intelligence, quantum technology, semiconductors, robotics, and autonomous systems, alongside energy, space, biotechnology, medical technology, advanced materials, and agritech. It intends to make investments of approximately €100 million or more, including follow-on funding rounds, and will back private companies from Series B onward. To qualify, companies must operate within, or plan to establish themselves within, an eligible country. The investment focus includes digital systems, industrial systems, and life sciences, with EQT sourcing potential investments and managing interactions with target companies through an open, transparent, and merit-based process. Previous support from European Innovation Council programs will not guarantee automatic preference; nonetheless, the existing EIC portfolio may still serve as a source for potential opportunities. This new fund is positioned above smaller EIC financing tools, such as the current EIC STEP program, which provides up to €30 million per company. Further details about 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 entities involved include Fondazione Compagnia di San Paolo, Intesa Sanpaolo, and Fondazione Cariplo. Dutch pension fund ABP is represented by APG Asset Management, while Wallenberg Investments and Allianz are also part of the founding group. EQT has committed its own capital to the fund, and there is potential for additional investors to join following the first closing. The group of investors consists of pension funds, foundations, banks, and investment organizations.
The Scaleup Europe Fund is an integral element of the EU Startup and Scaleup Strategy, which was 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 Europe’s strategic tech companies, addressing the trend of many high-growth firms seeking larger financing outside Europe, as highlighted by the Commission. The European Union has yet to specify any recipient companies or disclose precise investment amounts, but EQT is expected to select initial beneficiaries based on the fund’s commercial guidelines.