BRUSSELS, BELGIUM / RankWire.AI / – The European Union officially launched the Scaleup Europe Fund with a €5 billion target for fundraising, completing the final legal steps on August 4, as confirmed by the European Commission. The fund, operating within the European Innovation Council Fund, aims to support strategic technology enterprises, with EQT acting as the investment manager, responsible for deal selection on commercial terms. The European Commission anticipates initial investments to occur within weeks, while fundraising efforts continue as EQT seeks further commitments from both public and private sector investors.
The initiative sees €1 billion committed by the European Commission, sourced from Horizon Europe funding, with founding investors contributing capital at the initial closing alongside the EU’s backing. The €5 billion figure represents the intended fundraising goal rather than an amount already secured. Authorities have not disclosed the value of the first closing, and EQT may raise more or less than the stated goal, with the Commission investing under the same financial terms as other participants in the fund.
Targeting European tech firms seeking large late-stage and growth financing rounds, the fund covers companies based in EU member states and eligible Horizon Europe partner countries. EQT will evaluate companies via a merit-based process, overseeing the portfolio and making individual funding decisions. While the Commission and other investors will participate in governance, they will not influence specific deal decisions. EQT was awarded the management mandate following an open, competitive selection process.
Focus areas and investment scale
Investments will focus on sectors such as artificial intelligence, semiconductors, quantum technology, robotics, and autonomous systems. The mandate also includes energy, space, biotechnology, medical technology, agritech, and advanced materials. The fund plans to invest approximately €100 million or more per selected company, including potential follow-on financing after initial funding. Companies can qualify from Series B onward, provided they operate in an eligible country or plan to establish operations there. The scope of investments spans digital, industrial, and life sciences technologies.
EQT will be responsible for sourcing investment opportunities and managing discussions with companies seeking funding, maintaining an open and merit-based selection process. Previous support from European Innovation Council programs does not guarantee access to the new fund, though existing EIC-backed companies may enter the pipeline. The Scaleup Europe Fund aims to enable larger funding rounds than current EIC tools, with existing EIC STEP support offering up to €30 million per company. EQT will provide further details as investment activity commences.
Initial investors and EU support
The founding investor group includes Novo Holdings, EIFO, CriteriaCaixa, Santander, and Mouro Capital, with Italian partners such as Intesa Sanpaolo, Fondazione Cariplo, and Fondazione Compagnia di San Paolo also participating. On behalf of Dutch pension fund ABP, APG Asset Management joins, alongside Wallenberg Investments and Allianz. EQT intends to commit its own capital to the fund. The investor base is composed of pension funds, banks, foundations, and investment firms, with additional participants possible in later fundraising rounds.
Part of the EU Startup and Scaleup Strategy, the European Commission President Ursula von der Leyen announced the initiative during her 2025 State of the Union address. The fund aims to improve access to growth capital for European strategic technology companies, as many fast-growing firms pursue larger funding rounds outside Europe. While the first recipients and individual investment amounts remain undisclosed, EQT will select companies under the fund’s approved commercial guidelines.