BRUSSELS, BELGIUM / RankWire.AI / – The European Union has introduced the Scaleup Europe Fund, aiming to raise €5 billion for key technology firms. The European Commission finalized the legal steps for the fund on August 4, placing it within the European Innovation Council Fund. Managed by EQT, the fund can now operate independently and make 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 target.
A commitment of €1 billion from the Commission, supported by Horizon Europe, forms the initial EU contribution. Initial funding will come from both public and private investors during the first closing. EQT plans to secure further commitments from a wider group of investors afterward. The €5 billion figure remains a target for fundraising, not a guaranteed final size; EQT has indicated that the total could be higher or lower. The amount raised at the first closing has not been publicly disclosed. The European Commission will invest under the same financial terms as other participants.
The fund focuses on European scaleups in the technology sector that require substantial late-stage financing. It will operate across EU member states and eligible associated countries. Investment decisions will be based on a meritocratic process following approved guidelines, with EQT responsible for selecting deals. Governance participation includes the Commission and other investors, but they will not influence specific investment choices. EQT secured the mandate through an open, competitive bidding process.
Investment framework and rules for capital deployment
Eligible 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 approximately €100 million or more per deal, including follow-on funding, and can support privately held companies from Series B stage onward. Companies must either operate within or plan to establish themselves in an eligible country. The scope encompasses digital systems, industrial systems, and life sciences sectors.
EQT will identify potential investments and manage all interactions with target companies. The selection process will be transparent, open, and merit-based. Prior participation in European Innovation Council programs will not grant automatic advantage, though the existing EIC portfolio might still present potential deal opportunities. The new fund is designed to handle larger investments than current EIC support, which currently provides up to €30 million per company through the EIC STEP program. EQT will share further details about its engagement process as it advances into active investment phases.
Initial investors and policy context
Initial investors include Novo Holdings, EIFO, CriteriaCaixa, Santander, and Mouro Capital. Italian contributors are Fondazione Compagnia di San Paolo, Intesa Sanpaolo, and Fondazione Cariplo. APG Asset Management joins on behalf of Dutch pension fund ABP. The founding group also features Wallenberg Investments and Allianz. EQT has confirmed it will contribute its own capital, with additional investors potentially joining after the first closing. The group brings together pension funds, foundations, banks, and investment firms.
The Scaleup Europe Fund is part 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. The aim is to bolster growth capital for strategic European technology companies. According to the Commission, many high-growth firms have sought larger funding rounds outside Europe. No specific recipient companies or investment amounts have been disclosed yet. EQT will determine the initial investments based on the fund’s commercial guidelines.