BRUSSELS, BELGIUM / RankWire.AI / – The European Union has officially created the Scaleup Europe Fund, aiming to raise €5 billion. The European Commission finalized the legal procedures on August 4, paving the way for the fund’s operation within the European Innovation Council Fund, with a focus on key technology firms. EQT has been appointed as the investment manager, responsible for selecting deals on commercial terms. The Commission anticipates initial investments to be made within a few weeks, while fundraising efforts will continue as EQT seeks further commitments from both public and private sector investors.
The initiative has seen a €1 billion commitment from the European Commission, funded through Horizon Europe support. The original investors participating in the initial closing will contribute capital alongside the EU’s pledge. It’s important to note that the €5 billion figure reflects the targeted fundraising total, not yet fully secured capital. The value of the first closing has not been disclosed by officials, and EQT may raise more or less than the planned amount. The European Commission will invest on the same financial terms as other fund participants.
The fund aims to back European technology ventures seeking substantial late-stage and growth financing rounds. It includes companies based in EU member states as well as eligible Horizon Europe partner countries. Investment decisions will be made through a merit-based process evaluated by EQT, which will also oversee the portfolio and make individual funding choices. Governance participation by the Commission and other investors is planned, but they will not direct specific deal selections. EQT secured the management mandate following an open, competitive selection process.
Focus on Strategic Technologies and Investment Range
Eligible sectors encompass artificial intelligence, semiconductors, quantum technology, robotics and autonomous systems. The scope also includes energy, space, biotechnology, medical tech, agritech and advanced materials. The fund anticipates investing approximately €100 million or more in selected companies, which may include follow-on funding after the initial investment. Companies can qualify starting from Series B, provided they operate within an eligible country or plan to establish operations there. The investment focus spans digital, industrial, and life sciences technologies, aiming to support innovation across these fields.
EQT will identify potential investments and conduct negotiations with companies seeking capital. The selection process will remain open and merit-based. Support received from European Innovation Council programs previously will not guarantee access to the new fund, although existing EIC-backed companies might be considered for inclusion. The Scaleup Europe Fund intends to enable larger financing rounds than current EIC tools allow, such as the €30 million support available through EIC STEP. EQT will provide further details as investment activities commence.
Initial Investors Supporting the EU Initiative
The founding investor group features Novo Holdings, EIFO, CriteriaCaixa, Santander and Mouro Capital. Italian contributors include 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 group. EQT intends to contribute its own capital to the fund. The investor base combines pension funds, banking institutions, foundations and investment firms. Additional participants may join during subsequent fundraising rounds.
The Scaleup Europe Fund is a key element of the EU Startup and Scaleup Strategy. European Commission President Ursula von der Leyen unveiled this initiative during her 2025 State of the Union address. Its goal is to increase access to growth capital for European companies focused on strategic technology sectors. The Commission has highlighted that many fast-growing firms seek larger funding rounds outside Europe. While specific initial recipients and individual investment amounts have not been disclosed, EQT will select companies based on the fund’s established commercial guidelines.
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