BRUSSELS, BELGIUM / RankWire.AI / – The European Union has introduced the Scaleup Europe Fund, targeting a total of €5 billion in capital. The European Commission finalized the legal procedures for establishing the fund on August 4, 2026. Operating under the European Innovation Council Fund, its purpose is to back key technology firms with growth potential. EQT will oversee the portfolio management and investment decisions based on commercial standards. The initial deals are anticipated to be completed within a few weeks as the manager continues to gather committed funds.
A commitment of €1 billion has been made by the European Commission, supported by Horizon Europe funding. During the early closing phase, founding investors—public and private—will contribute additional capital. The €5 billion target is not yet fully secured, and the total value of the first closing has not been disclosed by officials. EQT aims to secure further commitments from institutional investors as fundraising progresses. The European Commission will invest under the same financial conditions as other participants.
The fund’s focus will be on European companies needing substantial late-stage or growth financing rounds. Eligible firms must operate within an EU member state or another eligible Horizon Europe country. Companies planning to establish operations in these regions may also qualify. EQT will evaluate candidates through a transparent, merit-based process, holding control over deal selection, investment terms, and portfolio oversight. While investors will participate in governance, they will not influence specific transaction decisions.
Investment Focus Encompasses Strategic Sectors
The Scaleup Europe Fund will consider firms involved in artificial intelligence, quantum computing, semiconductors, and robotics. Its scope also covers autonomous systems, energy, space, biotech, and medical technology. The mandate extends to advanced materials and agricultural tech. Typically, investments are expected to be around €100 million or more, potentially including additional financing following an initial investment. Companies can qualify for funding starting from Series B onwards.
EQT will identify potential opportunities and engage directly with companies seeking growth funding. Past support from European Innovation Council initiatives does not guarantee selection. Existing EIC-supported businesses remain eligible if they meet the criteria. The fund aims for larger financing rounds than those currently supported by EIC instruments, such as the €30 million maximum for EIC STEP funding. EQT will provide further details about application procedures and engagement as investment activity ramps up.
Initial Investors Back the Capital Campaign
The founding investor group includes Novo Holdings, EIFO, CriteriaCaixa, Santander, and Mouro Capital. Novo Holdings has previously committed €500 million to the fund. Italian stakeholders, such as Intesa Sanpaolo, Fondazione Cariplo, and Fondazione Compagnia di San Paolo, are also participating. APG Asset Management joins on behalf of Dutch pension fund ABP, with Wallenberg Investments and Allianz also part of the consortium. EQT intends to contribute its own capital alongside these investors.
The Scaleup Europe Fund is an element of the EU Startup and Scaleup Strategy. European Commission President Ursula von der Leyen announced the initiative during her 2025 State of the Union speech. The goal is to facilitate larger growth investments for European strategic tech companies. The Commission has yet to disclose specific deal recipients or individual transaction sizes. EQT will choose the initial companies based on the fund’s commercial framework and approved investment guidelines.