BRUSSELS, BELGIUM / RankWire.AI / – The European Union has introduced the Scaleup Europe Fund, with a target of €5 billion dedicated to key technology firms. The European Commission finalized the legal procedures for the fund on August 4, integrating it into the European Innovation Council Fund. Currently managed by EQT, it is capable of making independent investments on market terms. The Commission anticipates initial investments will occur within the upcoming weeks, while efforts to raise additional capital continue to reach the €5 billion goal.
The EU has pledged €1 billion, supported by Horizon Europe, as part of the initial contribution. Both public and private investors investors will contribute capital during the first closing. Subsequently, EQT intends to attract further commitments from a broader base of investors. While €5 billion is the fundraising goal, it does not necessarily reflect the final fund size, as EQT notes that the total could be above or below that figure. The amount raised at the first closing has not been disclosed, and the Commission will participate on the same financial terms as other investors.
The fund aims to support European technology scaleups requiring substantial late-stage financing rounds. Its operations will span across EU member states and eligible associated countries. Investments will be selected through a merit-based process in accordance with approved guidelines. The governance of the fund will include the Commission and other investors, who will not influence individual deal decisions, leaving EQT responsible for commercial selections and portfolio management. EQT secured this mandate via an open, competitive process.
Structure of Capital and Investment Guidelines
Eligible sectors encompass artificial intelligence, quantum technology, semiconductors, robotics and autonomous systems. The mandate also covers energy, space, biotechnology, medical technology, advanced materials, and agritech. The fund intends to invest approximately €100 million or more per deal, including follow-on funding, and can back private companies from Series B onward. Investments are limited to firms operating or planning to locate within an eligible country, focusing on digital systems, industrial systems, and life sciences.
EQT will identify potential investments and oversee engagement with target companies. The selection process will remain open, transparent, and merit-based, without automatic preference for companies from existing European Innovation Council programs. Nonetheless, the current EIC portfolio may still serve as a pipeline for potential deals. In terms of investment size, the new fund surpasses smaller EIC financing tools, such as the €30 million maximum support through EIC STEP. Further details regarding engagement will be shared as the fund advances into active investment phases.
Initial Investors and Regulatory Framework
Initial investors include Novo Holdings, EIFO, CriteriaCaixa, Santander, and Mouro Capital. Italian contributors feature Fondazione Compagnia di San Paolo, Intesa Sanpaolo, and Fondazione Cariplo. APG Asset Management joins on behalf of Dutch pension fund ABP. Wallenberg Investments and Allianz are also part of the founding group. EQT has committed its own capital to the fund, with additional investors expected to join after the first closing. The consortium comprises pension funds, foundations, banks, and investment organizations.
The Scaleup Europe Fund is a 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 designed the program to boost growth capital for strategic European technology enterprises. According to the Commission, many high-growth firms have sought larger financing rounds outside Europe. The Commission has yet to identify specific recipient companies or disclose precise investment figures. EQT will choose the initial recipients in line with the fund’s commercial guidelines.