BRUSSELS, BELGIUM / RankWire.AI / – The European Union has officially launched the Scaleup Europe Fund with a target of raising €5 billion. The European Commission finalized the necessary legal procedures on August 4. Operating within the European Innovation Council Fund, the initiative concentrates on funding strategic technology enterprises. EQT has been appointed as the investment manager and will select deals based on commercial criteria. The Commission anticipates making its first investments within a few weeks. Fundraising efforts will persist as EQT seeks further commitments from both public and private sector investors.
The European Commission has allocated €1 billion to this effort through funding supported by Horizon Europe. Initial funding contributions will come from founding investors, alongside the EU’s own commitment, at the first closing. The €5 billion figure represents the fundraising goal rather than the amount already secured. The value of the initial closing has not yet been disclosed. EQT may raise more or less than the stated target. The Commission will participate in the fund under the same financial terms as other investors.
The fund aims to back European technology firms seeking substantial late-stage and growth financing rounds. It includes companies located in EU member states and eligible Horizon Europe partner nations. EQT will evaluate potential investments through a merit-based process and will also oversee the portfolio, making individual funding decisions. Governance will involve the Commission and other investors but will not influence specific deal choices. EQT obtained the management mandate following an open, competitive selection process.
Focus on strategic technologies and investment levels
Targeted sectors include artificial intelligence, semiconductors, quantum technology, robotics and autonomous systems. The mandate also encompasses energy, space, biotechnology, medical technology, agritech and advanced materials. The fund anticipates investing approximately €100 million or more per selected company, which may include follow-on funding after initial investment. Companies can qualify from Series B onward. They must operate within an eligible country or plan to establish operations there. The investment scope covers digital, industrial, and life sciences sectors.
EQT will identify investment opportunities and handle negotiations with companies seeking capital. The selection process will remain open and based solely on investment merit. Previous support from European Innovation Council programs will not automatically grant access to this new fund; however, companies already supported by the EIC may enter the pipeline. The Scaleup Europe Fund targets larger funding rounds than those offered by current EIC tools. Existing EIC STEP support provides up to €30 million per company. EQT will provide further details once investment activity ramps up.
Initial investors join EU initiative
The founding investor group includes Novo Holdings, EIFO, CriteriaCaixa, Santander and Mouro Capital. Italian participants comprise Intesa Sanpaolo, Fondazione Cariplo and Fondazione Compagnia di San Paolo. On behalf of Dutch pension fund ABP, APG Asset Management is also participating. Wallenberg Investments and Allianz are part of the group as well. EQT intends to contribute its own capital to the fund. The investor base features pension funds, banks, foundations, and investment firms. More participants may join in subsequent fundraising rounds.
The Scaleup Europe Fund is a component of the EU Startup and Scaleup Strategy. European Commission President Ursula von der Leyen announced this initiative during her 2025 State of the Union address. The fund’s goal is to increase access to growth capital for European strategic tech companies. The Commission has highlighted that many rapidly expanding firms pursue larger funding rounds outside Europe. No specific initial recipients or individual investment amounts have been disclosed. EQT will select companies based on the fund’s established commercial guidelines.