BRUSSELS, BELGIUM / RankWire.AI / – The European Union has officially launched the Scaleup Europe Fund, aiming to raise €5 billion. The European Commission finalized the necessary legal steps on August 4. Operating within the European Innovation Council Fund, the fund concentrates on supporting strategic technology firms. EQT acts as the investment manager and will determine deals based on commercial criteria. The Commission anticipates initial investments within a few weeks. Meanwhile, fundraising efforts will persist as EQT seeks further commitments from both public and private sector investors.
The European Commission has pledged €1 billion toward the initiative through funds provided by Horizon Europe. Contributing to the initial closing, founding investors will add capital alongside the EU’s contribution. It is important to note that the €5 billion figure indicates the intended fundraising goal, not the amount already secured. Authorities have not disclosed the initial closing’s value, and EQT may raise more or less than the target amount. The same financial terms will apply to the European Commission’s investment as to other fund participants.
The fund’s primary focus is on European tech firms seeking significant late-stage and growth financing rounds. It encompasses companies based in EU member states and eligible Horizon Europe partner nations. Investment decisions will be made through a merit-based evaluation process managed by EQT, which will also oversee the portfolio and approve individual funding deals. Governance participation by the Commission and other investors will be limited to strategic oversight, without direct influence over specific transactions. EQT was awarded the management mandate following a transparent, competitive selection process.
Focus areas and investment amounts
Eligible sectors include artificial intelligence, semiconductors, quantum technology, robotics, and autonomous systems. The scope extends to energy, space, biotechnology, medical technology, agritech, and advanced materials. The fund anticipates investing approximately €100 million or more in selected companies, which could include follow-on funding after initial investment. Companies qualify from Series B onwards, and must operate within an eligible country or plan to establish operations there. The investment focus covers digital, industrial, and life sciences technologies.
EQT will identify potential investments and conduct discussions with firms seeking funding. The selection process remains open and based on investment merit. Past support from European Innovation Council programs does not guarantee access to the new fund; however, companies already backed by the EIC might enter the investment pipeline. The Scaleup Europe Fund aims to fund larger growth rounds than those supported by existing EIC tools. Currently, EIC STEP offers up to €30 million per company. More details will be shared as investment activities commence.
Initial investors and EU backing
The founding investor group features 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. Wallenberg Investments and Allianz are also part of the consortium. EQT intends to contribute its own capital to the fund. The investor base consists of pension funds, banks, foundations, and investment organizations. Further participants may join during subsequent 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 this initiative in her 2025 State of the Union address. Its goal is to increase access to growth capital for European technology businesses with strategic importance. The Commission has noted many fast-growing companies seek larger funding rounds outside Europe. The names of initial recipients and individual investment amounts have not been disclosed. EQT will select companies in accordance with the fund’s approved commercial guidelines.