BRUSSELS, BELGIUM / RankWire.AI / – The European Union has introduced the Scaleup Europe Fund, aiming to raise €5 billion to support key technology firms. The European Commission finalized the legal steps for the fund on August 4, placing it within the European Innovation Council Fund. Currently managed by EQT, the fund can make autonomous investments on market terms. The Commission anticipates initial investments in the upcoming weeks, with ongoing fundraising efforts to reach the €5 billion goal.
The EU has committed €1 billion of this amount, with backing from Horizon Europe as part of the EU contribution. Both public and private investors will contribute capital at the first closing, with EQT seeking further commitments from a wider investor base. While €5 billion remains the target, the final fund size could be higher or lower; the initial closing amount has not been publicly disclosed. The Commission participates on the same financial terms as other investors, with no influence over individual deals.
Designed to support European technology scaleups needing substantial late-stage funding, the fund will operate across EU member states and eligible associated countries. EQT will select investments based on merit, adhering to approved guidelines. Governance will involve the Commission and other investors, who will not direct individual transactions, leaving EQT responsible for commercial decisions and portfolio management. The mandate was awarded through an open, competitive process.
Structure and Investment Guidelines
Investments will target sectors such as artificial intelligence, quantum technology, semiconductors, robotics, and autonomous systems. The scope extends to energy, space, biotechnology, medical technology, advanced materials, and agritech. The fund intends to make investments of at least €100 million, including follow-on rounds, supporting privately owned companies from Series B onward. Companies must operate or plan to establish themselves within an eligible country. The investment focus encompasses digital systems, industrial systems, and life sciences.
EQT will handle sourcing potential investments and managing engagement with the companies. Selection will be transparent, merit-based, and open to all qualified applicants; prior support from European Innovation Council programs will not automatically give preference. The existing EIC portfolio might still serve as a source for potential deals, with the new fund positioned above smaller EIC financing tools in terms of investment size. Currently, EIC STEP support offers up to €30 million per company. EQT will provide additional details on engagement as the fund begins its investment activities.
Initial Investors and Policy Context
Initial investors include Novo Holdings, EIFO, CriteriaCaixa, Santander, and Mouro Capital. Italian contributors comprise Fondazione Compagnia di San Paolo, Intesa Sanpaolo, and Fondazione Cariplo. APG Asset Management joins on behalf of Dutch pension fund ABP, while Wallenberg Investments and Allianz are also part of the founding group. EQT has indicated it will contribute its own capital to the fund, with additional investors potentially joining after the first closing. The group features pension funds, foundations, banks, and investment entities.
The Scaleup Europe Fund is part of the EU Startup and Scaleup Strategy, announced by European Commission President Ursula von der Leyen during her 2025 State of the Union address. The initiative aims to boost growth capital for strategic European tech companies, addressing the trend of many high-growth firms seeking larger rounds outside Europe, according to the Commission. Specific recipient companies and investment amounts have not been disclosed; EQT will select initial beneficiaries following the fund’s commercial guidelines.