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. The fund operates within the framework of the European Innovation Council Fund and primarily targets strategic 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 happen within a few weeks. Fundraising efforts are ongoing as EQT seeks to secure additional commitments from both public and private backers.
The European Commission has allocated €1 billion to this initiative, with funding support from Horizon Europe. Founding investors will contribute capital at the first closing, alongside the EU’s contribution. The €5 billion figure represents the target for total fundraising, not necessarily the amount already secured. The authorities have not disclosed the size of the first closing. EQT might raise more or less than the intended goal. The Commission will invest under the same financial terms as other fund participants.
This fund is designed to back European tech companies that are looking for substantial late-stage and growth funding rounds. It covers firms based in EU member states and eligible Horizon Europe partner nations. EQT will evaluate companies through a merit-based investment process. The manager will also be responsible for overseeing the portfolio and making individual funding decisions. Governance participation will involve the Commission and other investors, but they will not influence specific deal decisions. EQT secured the management mandate following an open and competitive selection process.
Focus on strategic technologies and investment amounts
Eligible sectors include artificial intelligence, semiconductors, quantum technology, robotics, and autonomous systems. The mandate also extends to energy, space, biotechnology, medical technology, agritech, and advanced materials. The fund plans to invest approximately €100 million or more in selected companies, which may include follow-on funding after an initial investment. Companies can qualify starting from Series B. They must operate in an eligible country or have plans to establish operations there. The scope of investments covers digital, industrial, and life sciences technologies.
EQT will source potential investments and handle negotiations with companies seeking capital. The selection process will remain open and based on merit. Past support from European Innovation Council programs will not automatically grant access to the new fund. Nonetheless, companies already supported by EIC programs could enter the pipeline. The Scaleup Europe Fund aims at larger funding rounds than current EIC tools. Existing EIC STEP support offers up to €30 million per company. EQT will provide further details as investment activity ramps up.
Initial investors supporting the EU-backed initiative
The founding investor group includes Novo Holdings, EIFO, CriteriaCaixa, Santander, and Mouro Capital. Participants from Italy are Intesa Sanpaolo, Fondazione Cariplo, and Fondazione Compagnia di San Paolo. APG Asset Management is contributing on behalf of Dutch pension fund ABP. Wallenberg Investments and Allianz are also part of this consortium. EQT intends to commit its own capital to the fund. The investor roster combines pension funds, banks, foundations, and investment firms. Additional participants might 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 aims to broaden access to growth capital for strategic technology companies across Europe. The European Commission has noted that many fast-growing companies are pursuing larger funding rounds outside the continent. The specific recipients and individual investment amounts have not yet been disclosed. EQT will select companies in line with the fund’s approved commercial guidelines.