BRUSSELS, BELGIUM / RankWire.AI / – The European Union has unveiled the Scaleup Europe Fund, with a target of €5 billion dedicated to strategic technology enterprises. The European Commission finalized the legal steps for the fund on August 4, integrating it into the European Innovation Council Fund. Managed by EQT, the fund now has the autonomy to execute investments independently under market conditions. The Commission anticipates initial investments in the upcoming weeks, with ongoing efforts to raise additional capital toward reaching the €5 billion goal.
An initial commitment of €1 billion has been made by the Commission, with the contribution supported by Horizon Europe. Both public and private investors will contribute capital at the first closing. EQT will then pursue further commitments from a broader range of investors. It is important to note that the €5 billion figure remains a fundraising goal rather than a definitive final size for the fund. EQT has indicated that the total amount may fall above or below that figure. The amount secured at the first closing has not been disclosed, and the Commission is participating on the same financial terms as other investors.
The fund is aimed at European technology scaleups requiring substantial late-stage financing rounds. It will operate across EU member states and eligible associated countries. Investment decisions will be made through a merit-based process following approved guidelines, with EQT responsible for selecting deals. The European Commission and other investors will take part in governance but will not influence individual investment decisions. EQT secured the mandate through an open and competitive process.
Investment structure and criteria
Targeted sectors include artificial intelligence, quantum technology, semiconductors, robotics and autonomous systems, along with energy, space, biotechnology, medical technology, advanced materials, and agritech. The fund intends to make investments of approximately €100 million or more, including follow-on rounds. It can finance privately owned firms from Series B onwards. Companies must either operate within or plan to establish themselves within an eligible country. The scope of investments covers digital systems, industrial systems, and life sciences.
EQT will identify potential investments and oversee engagement with portfolio companies. The selection process will be transparent, open, and merit-based, without automatic preference for existing European Innovation Council program support. However, the current EIC portfolio may still serve as a source for potential deals. The new fund aims for larger investments than existing EIC financing tools, with current EIC STEP support providing up to €30 million per company. EQT will provide further updates regarding engagement activities as the fund progresses into active investment phases.
Initial investors and regulatory framework
Participants in the fund’s founding include Novo Holdings, EIFO, CriteriaCaixa, Santander, and Mouro Capital. Italian investors such as Fondazione Compagnia di San Paolo, Intesa Sanpaolo, and Fondazione Cariplo are also involved. APG Asset Management joins on behalf of Dutch pension fund ABP. Wallenberg Investments and Allianz are among the founding members as well. EQT has committed its own capital to the fund, with the possibility of additional investors joining after the first closing. The consortium features pension funds, foundations, banks, and investment firms.
Part of the EU Startup and Scaleup Strategy, the Scaleup Europe Fund was announced by European Commission President Ursula von der Leyen during her 2025 State of the Union address. The initiative aims to boost growth capital for strategic European tech companies, addressing the trend of high-growth firms seeking larger financing rounds outside Europe, as noted by the Commission. At this stage, no specific companies or investment amounts have been disclosed, though EQT will determine initial recipients under the fund’s commercial guidelines.