BRUSSELS, BELGIUM / RankWire.AI / – The European Union has formally established the Scaleup Europe Fund with a €5 billion fundraising target. The European Commission completed the final legal steps on August 4. The fund operates within the European Innovation Council Fund and focuses on strategic technology companies. EQT serves as investment manager and will select deals on commercial terms. The Commission expects the first investments within weeks. Fundraising will continue as EQT seeks additional commitments from public and private investors.
The European Commission has committed €1 billion to the initiative through funding backed by Horizon Europe. Founding investors will contribute capital at the initial closing, alongside the EU commitment. The €5 billion figure represents the planned fundraising goal rather than secured capital. Officials have not released the value of the first closing. EQT may raise more or less than the stated target. The Commission will invest under the same financial terms that apply to other participants in the fund.
The fund will support European technology companies seeking large late-stage and growth financing rounds. It covers businesses based in EU member states and eligible Horizon Europe partner countries. EQT will assess companies through a merit-based investment process. The manager will also oversee the portfolio and make individual funding decisions. The Commission and other investors will participate in governance but will not direct specific deals. EQT secured the management mandate after an open competitive selection process.
Strategic technologies and investment size
Eligible industries include artificial intelligence, semiconductors, quantum technology, robotics and autonomous systems. The mandate also covers energy, space, biotechnology, medical technology, agritech and advanced materials. The fund expects to invest about €100 million or more in selected companies. That figure may include follow-on financing after an initial investment. Companies can qualify from Series B onward. They must operate in an eligible country or plan to establish operations there. The investment scope spans digital, industrial and life sciences technologies.
EQT will source investment candidates and manage discussions with companies seeking capital. The selection process will remain open and based on investment merit. Previous support from European Innovation Council programs will not guarantee access to the new fund. However, existing EIC-backed companies may enter the investment pipeline. The Scaleup Europe Fund targets larger financing rounds than current EIC tools. Existing EIC STEP support provides up to €30 million per company. EQT will release more information as investment activity begins.
Founding investors join EU initiative
The founding investor group includes Novo Holdings, EIFO, CriteriaCaixa, Santander and Mouro Capital. Italian participants include Intesa Sanpaolo, Fondazione Cariplo and Fondazione Compagnia di San Paolo. APG Asset Management is joining on behalf of Dutch pension fund ABP. Wallenberg Investments and Allianz also form part of the group. EQT plans to commit its own capital to the fund. The investor base combines pension funds, banks, foundations and investment organizations. Additional participants may join during later fundraising rounds.
The Scaleup Europe Fund forms part of the EU Startup and Scaleup Strategy. European Commission President Ursula von der Leyen announced the initiative during her 2025 State of the Union address. The fund seeks to expand access to growth capital for European strategic technology businesses. The Commission has said many fast-growing companies pursue larger funding rounds outside Europe. Officials have not identified the first recipients or disclosed individual investment amounts. EQT will choose companies under the fund’s approved commercial guidelines.