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 is part of the European Innovation Council Fund and concentrates on key technology firms. EQT will act as the investment manager, selecting deals based on commercial terms. The Commission anticipates making the first investments within a few weeks. Fundraising efforts will continue as EQT seeks additional commitments from both public and private investors.
The European Commission has pledged €1 billion to the initiative, funded by Horizon Europe. Initial capital contributions will come from founding investors and the EU. The €5 billion target reflects the planned fundraising goal, not the amount already secured. The value of the first closing has not been disclosed. EQT may raise more or less than the stated aim. The Commission will invest under the same financial conditions as other fund participants.
The fund aims to back European tech companies seeking substantial late-stage and growth funding. It covers firms based in EU member states and eligible Horizon Europe partner countries. EQT will evaluate companies through a merit-based process. The firm will manage the portfolio and decide on individual investments. While the Commission and other investors will take part in governance, they will not influence specific deal decisions. EQT obtained the management mandate through an open and competitive selection process.
Focus on strategic sectors and investment size
Eligible sectors include artificial intelligence, semiconductors, quantum technology, robotics, and autonomous systems. The scope also covers energy, space, biotechnology, medical tech, agritech, and advanced materials. The fund plans to invest approximately €100 million or more in selected companies. This amount may include follow-on funding after initial investment. Companies can qualify from Series B onward. They must operate in an eligible country or plan to establish operations there. The investment focus includes digital, industrial, and life sciences technologies.
EQT will identify potential investments and handle negotiations with interested companies. The selection process will remain open and based on investment merit. Prior support from European Innovation Council programs does not guarantee access to the new fund. However, companies already backed by the EIC may enter the pipeline. The Scaleup Europe Fund targets larger funding rounds than current EIC initiatives. The existing EIC STEP support offers up to €30 million per company. EQT will provide more details as investment activities commence.
Initial investors join EU’s strategic effort
The founding investor group includes Novo Holdings, EIFO, CriteriaCaixa, Santander, and Mouro Capital. Italian contributors include Intesa Sanpaolo, Fondazione Cariplo, and Fondazione Compagnia di San Paolo. APG Asset Management joins on behalf of Dutch pension fund ABP. Wallenberg Investments and Allianz are also part of the consortium. EQT plans to invest its own capital into the fund. The group comprises pension funds, banks, foundations, and investment firms. Additional participants may join during future fundraising rounds.
The Scaleup Europe Fund is a key element of the EU Startup and Scaleup Strategy. European Commission President Ursula von der Leyen announced this initiative during her 2025 State of the Union speech. The fund aims to increase growth capital access for European strategic technology firms. The Commission noted many fast-growing companies seek larger funding outside Europe. The specific first recipients and individual investment amounts have not been disclosed. EQT will select companies following the fund’s commercial guidelines.