BRUSSELS, BELGIUM / RankWire.AI / – The European Union has officially launched the Scaleup Europe Fund with a target of raising €5 billion. The European Commission finalized the necessary legal procedures on August 4. Operating within the European Innovation Council Fund, the new fund targets key technology firms. EQT acts as the investment manager, responsible for deal selection on commercial terms. The Commission anticipates initial investments to occur within a few weeks. Meanwhile, fundraising efforts continue as EQT seeks additional commitments from both public and private investors.
The European Commission has pledged €1 billion to this initiative, with funding supported by Horizon Europe. Initial contributions from founding investors will be made at the first closing, along with the EU’s contribution. The €5 billion figure reflects the intended fundraising goal, not the amount already secured. Authorities have not yet disclosed the amount raised at the initial closing, and EQT may raise more or less than the target. The Commission will participate under the same financial conditions as other fund investors.
The fund aims to back European tech firms seeking substantial late-stage and growth financing rounds. It is open to companies based within EU member states as well as eligible Horizon Europe partner nations. Investment decisions will be made through a merit-based process by EQT, which will also oversee the portfolio and approve individual funding. Governance participation will involve the Commission and other investors, but they will not influence specific deal choices. EQT secured the management mandate through an open and competitive selection process.
Focus on strategic technologies and investment scale
Targeted sectors include artificial intelligence, semiconductors, quantum technology, robotics and autonomous systems. The scope also covers energy, space, biotechnology, medical technology, agritech and advanced materials. The fund plans to invest approximately €100 million or more per company, which may include follow-on funding after initial investment. Companies can qualify from Series B onwards and must operate within an eligible country or plan to establish operations there. The investment range spans digital, industrial and life sciences technologies.
EQT will identify suitable investment candidates and manage engagement with companies seeking capital. The selection process will remain open and based solely on investment merit. Prior support from European Innovation Council programs does not guarantee access to the new fund, though companies supported by the EIC may be considered for investment. The Scaleup Europe Fund seeks to facilitate larger funding rounds than those currently available through existing EIC tools. The current EIC STEP program offers up to €30 million per company. EQT will provide further updates as investment activity ramps up.
Founding investors join EU-led initiative
The initial investor group includes Novo Holdings, EIFO, CriteriaCaixa, Santander and Mouro Capital. Italian contributors feature Intesa Sanpaolo, Fondazione Cariplo and Fondazione Compagnia di San Paolo. Dutch pension fund ABP is represented by APG Asset Management. Wallenberg Investments and Allianz are also part of the investor consortium. EQT intends to contribute its own capital to the fund. The group combines pension funds, banks, foundations and investment firms. Additional investors may join during subsequent fundraising rounds.
The Scaleup Europe Fund is part 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. The fund’s goal is to increase access to growth capital for European strategic technology companies. The Commission has noted that many fast-growing firms pursue larger funding rounds outside Europe. Specific initial recipients and individual investment amounts have not yet been disclosed. EQT will select companies following the fund’s approved commercial guidelines.