BRUSSELS, BELGIUM / RankWire.AI / – The European Union has officially launched the Scaleup Europe Fund, aiming to raise €5 billion. The European Commission finalized all legal procedures on August 4. Operating within the European Innovation Council Fund, this initiative concentrates on strategic technology firms. EQT has been appointed as the investment manager and will evaluate deals based on commercial terms. The Commission anticipates the first investments will be made within a few weeks. Fundraising efforts will continue as EQT seeks to secure further commitments from both public and private sector investors.
An initial €1 billion has been committed to the project by the European Commission, backed by Horizon Europe funding. Contributions from founding investors will be included in the initial closing, alongside the EU’s contribution. The €5 billion figure represents the target fundraising goal, not yet the amount of secured capital. Authorities have not disclosed the value of the first closing, and EQT may raise more or less than the stated aim. The Commission will invest on the same financial terms as other fund participants.
The fund’s focus is on supporting European tech firms seeking substantial late-stage and growth funding rounds. It encompasses companies based in EU member states and eligible Horizon Europe partner nations. Investment decisions will be made through a merit-based process overseen by EQT, which will also manage the portfolio and approve individual investments. Governance participation will involve the Commission and other investors, but they will not influence specific deal decisions. EQT was awarded the management mandate following an open and competitive selection process.
Focus on key industries and investment scale
Eligible sectors include artificial intelligence, semiconductors, quantum technology, robotics, and autonomous systems. The scope also extends to energy, space, biotechnology, medical tech, agritech, and advanced materials. The fund plans to invest approximately €100 million or more per selected company, which may include follow-on financing after initial funding. Companies can qualify starting from Series B, provided they operate within an eligible country or intend to establish operations there. The investment range covers digital, industrial, and life sciences technologies.
EQT will identify investment prospects and lead negotiations with potential portfolio companies seeking capital. The selection process will remain open, emphasizing investment merit. Prior support from European Innovation Council programs does not guarantee access to the new fund, though companies already backed by the EIC may enter the investment pipeline. The Scaleup Europe Fund aims to facilitate larger financing rounds than existing EIC tools, which currently support up to €30 million per company through the EIC STEP program. EQT will provide additional details as investment activity ramps up.
Initial investor group and EU strategic growth plans
Among the founding investors are Novo Holdings, EIFO, CriteriaCaixa, Santander, and Mouro Capital. Italian contributors include Intesa Sanpaolo, Fondazione Cariplo, and Fondazione Compagnia di San Paolo. Dutch pension fund ABP is represented by APG Asset Management, while Wallenberg Investments and Allianz are also part of the group. EQT intends to invest its own capital into the fund. The investor consortium consists of pension funds, banks, foundations, and investment firms. Additional investors may join during future fundraising rounds.
The Scaleup Europe Fund is a key component of the EU Startup and Scaleup Strategy. European Commission President Ursula von der Leyen announced the initiative during her 2025 State of the Union address. The goal is to improve access to growth capital for European strategic technology companies. Many fast-growing firms currently seek larger funding rounds outside Europe, according to officials. The initial recipients and individual investment amounts have not yet been disclosed. EQT will select companies under the fund’s approved commercial guidelines.