BRUSSELS, BELGIUM / RankWire.AI / – The European Union has launched the Scaleup Europe Fund, aiming to raise €5 billion to support key technology firms. The European Commission finalized the legal process for the fund on August 4, integrating it into the European Innovation Council Fund. Currently managed by EQT, the fund can now make investments independently on market terms. The Commission anticipates the initial investments will occur in the upcoming weeks, with ongoing efforts to raise additional capital toward 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 provide capital at the first closing. EQT will then pursue further commitments from a wider investor base. The €5 billion mark remains an aspirational target rather than a confirmed fund size, and EQT notes that the final total could be higher or lower. The amount raised at the first closing has not been disclosed. The Commission participates under the same financial conditions as other investors.
The fund is aimed at European scaleups in the technology sector that require significant late-stage funding. It will operate across all EU member states and eligible associated countries. Investment decisions will be made via a merit-based process, following approved guidelines. While the Commission and other investors will have a say in governance, they will not influence individual deals; EQT holds responsibility for deal selection and portfolio management. The mandate was awarded through an open and competitive process.
Structure and Investment Parameters
Targeted sectors include artificial intelligence, quantum computing, semiconductors, robotics, and autonomous systems. The scope also encompasses energy, space, biotechnology, medical technology, advanced materials, and agritech. The fund intends to invest approximately €100 million or more per deal, including follow-on rounds. It is authorized to back private companies from Series B onwards. Eligibility is limited to companies operating or planning to operate within an eligible country, focusing on digital systems, industrial solutions, and life sciences.
EQT will identify investment opportunities and oversee engagement with potential portfolio companies. The selection process will be transparent, open, and merit-based. Past involvement in European Innovation Council programs does not automatically grant preference, although existing EIC portfolio companies might still present potential deals. This new fund is positioned above smaller EIC financing initiatives in terms of investment size, with current EIC STEP support providing up to €30 million per company. Further details on engagement strategies will be shared as the fund begins deploying capital.
Initial Investors and Regulatory Framework
Initial investors include Novo Holdings, EIFO, CriteriaCaixa, Santander, and Mouro Capital. Italian contributors are Fondazione Compagnia di San Paolo, Intesa Sanpaolo, and Fondazione Cariplo. Joining on behalf of Dutch pension fund ABP is APG Asset Management. Wallenberg Investments and Allianz also form part of the founding group. EQT has indicated its own capital will be invested into the fund, with additional investors possibly joining after the first closing. The investor group comprises pension funds, foundations, banks, and investment firms.
The Scaleup Europe Fund is a key 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 EU’s goal is to increase growth capital for strategic European technology companies. According to the Commission, many high-growth firms have sought larger financing rounds outside Europe. The Commission has not yet disclosed specific recipient companies or investment amounts. EQT will determine the first recipients following the fund’s commercial guidelines.