BRUSSELS, BELGIUM / RankWire.AI / – As part of its broader strategy to foster innovation and support high-growth tech firms, the European Union has officially launched the Scaleup Europe Fund with a target of raising €5 billion. The European Commission finalized the necessary legal steps on August 4, signaling the start of its operational phase. Managed within the European Innovation Council Fund, the new fund aims at backing strategic technology enterprises. EQT has been appointed as the investment manager and will select investment deals based on commercial criteria. The European Commission anticipates making its first investments within a few weeks, while fundraising efforts continue as EQT seeks to attract additional commitments from both public and private sector investors.
The initiative has received €1 billion from the European Commission, which is funded through Horizon Europe. Initial funding commitments from founding investors will be included in the first closing, alongside the EU contribution. The €5 billion figure represents the overall fundraising goal, not the amount already secured. No details about the initial closing’s total value have been released. EQT might raise more or less than the target amount, and the Commission will participate under the same financial conditions as other investors in the fund.
The fund intends to back European technology companies that are seeking large late-stage or growth financing rounds. It will support businesses based in EU member states and eligible Horizon Europe partner countries. Investment decisions will be made through a merit-based evaluation process managed by EQT, which will also oversee the portfolio and determine individual funding allocations. Although the Commission and other investors will be involved in governance, they will not influence specific deal decisions. EQT secured the management mandate after a competitive, open selection process.
Focus on strategic technologies and investment scale
The fund targets industries such as artificial intelligence, semiconductors, quantum technology, robotics, and autonomous systems. It also covers energy, space, biotechnology, medical technology, agritech, and advanced materials sectors. The plan is to invest approximately €100 million or more per selected company, which may include follow-on financing after an initial investment. Companies can qualify from Series B funding onward, provided they operate in an eligible country or plan to establish operations there. The scope of investments encompasses digital, industrial, and life sciences technologies.
EQT will identify potential investments and manage discussions with companies seeking funding. The selection process will remain open and based solely on the merit of each proposal. Prior support through European Innovation Council programs does not guarantee access to the new fund, although companies supported by existing EIC programs may be considered for investment. The Scaleup Europe Fund aims to facilitate larger funding rounds than current EIC tools, such as the EIC STEP, which offers up to €30 million per company. EQT will provide further details once investment activity commences.
Initial investors align with EU strategic goals
The founding investor group features Novo Holdings, EIFO, CriteriaCaixa, Santander, and Mouro Capital. Italian entities include Intesa Sanpaolo, Fondazione Cariplo, and Fondazione Compagnia di San Paolo. Dutch pension fund ABP is represented by APG Asset Management. Wallenberg Investments and Allianz also participate. EQT intends to contribute its own capital to the fund. The investor base comprises pension funds, banks, foundations, and investment firms. Additional participants may join in later fundraising rounds.
The Scaleup Europe Fund is part 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. Its goal is to expand access to growth capital for European strategic technology firms. The Commission has noted that many fast-growing companies are raising larger amounts outside Europe. The first recipients and specific investment amounts have not been disclosed. EQT will select companies according to the fund’s approved commercial guidelines.