BRUSSELS, BELGIUM / RankWire.AI / – The European Union has created the Scaleup Europe Fund, with an initial target of €5 billion dedicated to key technology firms. The European Commission finalized the fund’s legal approval on August 4, placing it within the European Innovation Council Fund. Managed by EQT, the fund can now make autonomous investments on market terms. The European Commission anticipates initial investments in the upcoming weeks, with ongoing efforts to raise additional capital toward the €5 billion goal.
A €1 billion commitment from the Commission, supported by Horizon Europe, has been made to the fund. Capital from public and private investors will be provided during the first closing. Subsequently, EQT will seek further commitments from a wider investor pool. The €5 billion figure remains an aspirational fundraising goal rather than a confirmed final size. EQT indicates that the total could end up above or below that amount. The initial closing amount has not been publicly disclosed, and the European Commission participates under the same financial conditions as other investors.
Designed to support European scaleups in the technology sector, the fund aims to facilitate large late-stage financing rounds. It will operate across EU member states and eligible associated countries. Investment decisions will be made through a merit-based process following approved guidelines, with EQT responsible for commercial selection and portfolio management. The European Commission and other contributors will be involved in governance but will not influence individual deal decisions. EQT secured the mandate through a competitive, open process.
Structure and Investment Regulations
Targeted sectors include artificial intelligence, quantum technology, semiconductors, robotics, and autonomous systems. The mandate also encompasses energy, space, biotechnology, medical technology, advanced materials, and agritech. The fund seeks to invest around €100 million or more per company, including follow-on rounds, and may fund privately owned firms from Series B onwards. Investments must be in companies operating in, or planning to establish themselves in, an eligible country. The scope of investments covers digital systems, industrial systems, and life sciences.
EQT will identify potential investments and manage engagement with companies through an open, transparent, merit-based process. Prior involvement with European Innovation Council programs does not automatically favor applicants. Nevertheless, the existing EIC portfolio might still be a source of potential deals. The fund aims to invest larger sums than current EIC tools, such as the €30 million support per company via EIC STEP. Further details on engagement and investments will be released by EQT as the fund progresses into active deployment.
Founders and Policy Context
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 also form 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 group combines pension funds, foundations, banks, and investment organizations.
The Scaleup Europe Fund is part of the EU Startup and Scaleup Strategy. European Commission President Ursula von der Leyen announced it during her 2025 State of the Union address. The initiative aims to boost growth capital for strategic European tech companies. According to the Commission, many high-growth firms have sought larger funding rounds outside Europe. The Commission has not yet disclosed specific recipient companies or investment amounts. EQT will determine initial investments following the fund’s established commercial guidelines.