BRUSSELS, BELGIUM / RankWire.AI / – The European Union officially launched the Scaleup Europe Fund with a target of raising €5 billion. The European Commission finalized the legal steps on August 4. Operating within the European Innovation Council Fund, the fund aims to support key technology firms. EQT has been appointed as the investment manager and will select deals based on commercial terms. The Commission anticipates that initial investments will occur within a few weeks. Fundraising efforts are ongoing as EQT seeks additional commitments from both public and private sector investors.
The initiative received a €1 billion commitment from the European Commission through funding supported by Horizon Europe. Early contributions from investors will be made at the initial closing alongside the EU’s contribution. The €5 billion figure represents the fundraising goal rather than confirmed capital. The first closing’s value has not been disclosed by officials. EQT might raise more or less than the stated target, and the Commission will invest under the same financial conditions as other fund participants.
The fund aims to back European technology startups in need of substantial late-stage and growth financing. It encompasses companies located in EU member states and eligible Horizon Europe partner countries. Investment decisions will be made through a merit-based process evaluated by EQT. The firm will also oversee the portfolio and decide on individual funding opportunities. Governance participation will involve the Commission and other investors, but they will not influence specific deal choices. EQT secured the management mandate after an open, competitive process.
Focus on Strategic Technologies and Investment Amounts
Target industries include artificial intelligence, semiconductors, quantum technology, robotics and autonomous systems. The fund also covers energy, space, biotechnology, medical technology, agritech and advanced materials. Investments are expected to be approximately €100 million or more per company, potentially including follow-on financing after initial funding. Companies can qualify starting from Series B, provided they operate in an eligible country or plan to establish operations there. The scope spans digital, industrial, and life sciences technologies.
EQT will identify potential investments and manage negotiations with companies seeking capital. The selection process remains open and based solely on merit. Past support from European Innovation Council programs does not guarantee access to this new fund, although companies backed by the EIC may be considered for investment. The Scaleup Europe Fund aims for larger funding rounds than existing EIC tools, which currently offer up to €30 million per company through support such as EIC STEP. More details will be provided as investment activities commence.
Initial Investors Join the EU-Backed Initiative
The founding investor group includes Novo Holdings, EIFO, CriteriaCaixa, Santander and Mouro Capital. Italian entities involved are Intesa Sanpaolo, Fondazione Cariplo and Fondazione Compagnia di San Paolo. APG Asset Management is participating on behalf of Dutch pension fund ABP. Wallenberg Investments and Allianz are also part of the consortium. EQT intends to contribute its own capital to the fund. The group of investors combines pension funds, banks, foundations and investment firms. Additional participants may join in subsequent fundraising stages.
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. The fund’s goal is to enhance access to growth capital for strategic technology businesses across Europe. The Commission has noted that many rapidly expanding companies seek larger funding rounds outside the continent. The first recipients and individual investment amounts have not yet been disclosed, with EQT responsible for selecting companies under the fund’s established commercial guidelines.