BRUSSELS, BELGIUM / RankWire.AI / – The European Union has introduced the Scaleup Europe Fund, with a goal to raise €5 billion for key technology firms. The European Commission finalized the legal steps for the fund on August 4, integrating it into the European Innovation Council Fund. EQT is now tasked with managing the fund and has the authority to make independent investments on market terms. The Commission anticipates initial investments in the upcoming weeks, with ongoing efforts to raise additional capital toward the €5 billion target.
The EU has pledged €1 billion, supported by Horizon Europe, as part of the contribution. Initial funding will come from both public and private investors during the first closing. Following this, EQT plans to attract further commitments from a wider range of investors. The €5 billion figure serves as a fundraising goal, and the final size of the fund may be higher or lower. The first closing amount has not been disclosed by officials. The Commission participates on the same financial terms as other investors.
The fund aims to support European scaleups in the technology sector that require substantial late-stage funding. It will operate across EU member states and eligible associated countries. EQT will select investments based on a meritocratic process aligned with approved investment guidelines. The governance of the fund involves both the Commission and other investors, but individual deal decisions remain under EQT’s control for commercial reasons. EQT secured the mandate through an open, competitive process.
Investment structure and criteria
Target sectors include 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 around €100 million or more per deal, including follow-up rounds. It can fund privately held companies starting from Series B. Eligible companies must operate or plan to establish themselves within an eligible country. The scope encompasses digital systems, industrial systems and life sciences.
EQT will identify potential investments and manage engagement with the companies. The selection process will be open, transparent, and merit-based. Past support from European Innovation Council initiatives will not automatically grant priority. Nonetheless, the existing EIC portfolio could still serve as a source for potential deals. The new fund exceeds smaller EIC financing tools in investment size, with current EIC STEP support reaching up to €30 million per company. Further details on engagement and investments will be published as the fund progresses into active deployment.
Initial investors and policy context
Initial investors include Novo Holdings, EIFO, CriteriaCaixa, Santander and Mouro Capital. Italian investors involved are 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 stated it will contribute its own capital to the fund, with additional investors potentially joining after the first closing. The group comprises pension funds, foundations, banks and investment firms.
The Scaleup Europe Fund is a component 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 availability for strategic European technology companies. According to the Commission, many high-growth firms have sought larger financing rounds outside Europe. The Commission has yet to specify any recipient companies or disclose precise investment amounts. EQT will identify the initial recipients in accordance with the fund’s commercial guidelines.