BRUSSELS, BELGIUM / RankWire.AI / – The European Union has officially launched the Scaleup Europe Fund with a target of raising €5 billion, following the completion of its final legal procedures by the European Commission on August 4. This fund operates under the umbrella of the European Innovation Council Fund and concentrates on strategic technology firms. EQT has been appointed as the investment manager and will select deals on commercial terms. The European Commission anticipates making the initial investments within a matter of weeks, with ongoing fundraising efforts as EQT seeks further commitments from both public and private sector investors.
The European Commission has pledged €1 billion to the initiative through funds supported by Horizon Europe, with founding investors contributing capital at the initial closing alongside the EU contribution. It is important to note that the €5 billion amount reflects the planned fundraising goal rather than the capital already secured; the details of the first closing have not been disclosed, and EQT may raise either more or less than the stated target. The Commission will participate under the same financial conditions as other fund participants.
This fund aims to back European tech companies that are seeking substantial late-stage and growth financing rounds, including businesses based in EU member states and eligible Horizon Europe partner countries. Through a merit-based investment process, EQT will evaluate companies, oversee their portfolios, and make individual funding decisions. While the Commission and other investors will be involved in governance, they will not influence specific deal approvals. EQT secured its management mandate following a competitive open selection process.
Focus on strategic sectors and investment amounts
The fund will focus on industries such as artificial intelligence, semiconductors, quantum technology, robotics and autonomous systems, in addition to energy, space, biotechnology, medical technology, agritech and advanced materials. It expects to invest approximately €100 million or more in selected companies, which may include follow-on financings after initial investments, with companies qualifying from Series B onwards. These companies must operate within 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, managing discussions with potential portfolio companies, and maintaining an open, merit-based selection process. Support previously received from European Innovation Council programs will not guarantee access to this new fund, although companies already backed by EIC may enter the investment pipeline. The Scaleup Europe Fund aims to facilitate larger financing rounds than those available through current EIC instruments, where existing EIC STEP support provides up to €30 million per company. EQT will release further details as investment activities ramp up.
Initial investors and EU strategic support
The group of founding investors includes Novo Holdings, EIFO, CriteriaCaixa, Santander and Mouro Capital. Italian entities such as Intesa Sanpaolo, Fondazione Cariplo and Fondazione Compagnia di San Paolo are also participating. Additionally, APG Asset Management is joining on behalf of Dutch pension fund ABP, while Wallenberg Investments and Allianz are part of the group as well. EQT intends to contribute its own capital to the fund. The investor base is composed of pension funds, banks, foundations and investment firms, with the possibility of attracting more participants in subsequent fundraising rounds.
The Scaleup Europe Fund is a component of the EU Startup and Scaleup Strategy, announced by European Commission President Ursula von der Leyen during her 2025 State of the Union speech. The initiative aims to broaden access to growth capital for European companies operating in strategic technology sectors. While many rapidly growing firms currently pursue larger funding rounds outside Europe, the European Union’s goal is to support such companies within its borders. The first recipients of investments and individual amounts have not yet been disclosed, but EQT will select eligible companies based on the fund’s commercial guidelines.