BRUSSELS, BELGIUM / RankWire.AI / – The European Union has launched the Scaleup Europe Fund with a target of €5 billion, aimed at strategic technology firms. The European Commission finalized the legal procedures for the fund on August 4, integrating it into the European Innovation Council Fund. Managed by EQT, the fund now has the authority to make independent investments on market terms. The Commission anticipates initial investments will be made within the next few weeks, with ongoing efforts to raise additional capital toward reaching the €5 billion goal.
The EU has committed €1 billion to the fund, with backing from Horizon Europe for the EU contribution. Capital from public and private investors will be provided at the first closing, with EQT also seeking further commitments from a wider investor pool. The €5 billion figure remains a fundraising goal rather than a definitive fund size, and EQT indicates that the actual total may be above or below that amount. The first closing amount has not been disclosed, and the Commission is participating under the same financial conditions as other investors.
The focus of the fund is on European scaleups in technology that require substantial late-stage funding rounds. It will operate across EU member states as well as eligible associated countries. Investment decisions will be made through a merit-based process aligned with approved guidelines. The governance of the fund will include the Commission and other investors, who will not influence individual deals but will oversee overall management. EQT secured the mandate via an open, competitive process.
Structure of Capital and Investment Criteria
Targeted sectors include artificial intelligence, quantum technology, semiconductors, robotics, and autonomous systems. The mandate also encompasses energy, space, biotechnology, medical technology, advanced materials, and agritech. The fund intends to make investments of approximately €100 million or more, including follow-up funding. It is authorized to support privately held companies starting from Series B and beyond. Companies must be based in or plan to establish operations within an eligible country. The scope of investments covers digital systems, industrial systems, and life sciences.
EQT will be responsible for sourcing potential investments and managing engagement with companies. Investment selection will be carried out through a transparent, merit-based process, with past support from European Innovation Council programs not offering automatic preference. However, the existing EIC portfolio may still serve as a source of potential deals. The new fund will target larger investment sizes than current EIC tools, with the EIC STEP program supporting up to €30 million per company. Additional details on engagement and pipeline will be shared as the fund progresses into active investing.
Initial Investors and Regulatory Framework
The founding investors include Novo Holdings, EIFO, CriteriaCaixa, Santander, and Mouro Capital. Italian contributors are Fondazione Compagnia di San Paolo, Intesa Sanpaolo, and Fondazione Cariplo. APG Asset Management joins on behalf of Dutch pension fund ABP. Also part of the founding group are Wallenberg Investments and Allianz. EQT has announced it will contribute its own capital to the fund, with additional investors expected to join after the first closing. The group comprises pension funds, foundations, banks, and investment firms.
The Scaleup Europe Fund is a key element of the EU Startup and Scaleup Strategy. European Commission President Ursula von der Leyen introduced it during her 2025 State of the Union address. This initiative aims to boost growth capital for vital European technology companies, addressing the tendency of many high-growth firms to seek larger funding rounds outside Europe, as reported by the Commission. While no specific companies or investment amounts have been disclosed, EQT will be responsible for selecting the initial recipients based on the fund’s commercial guidelines.