BRUSSELS, BELGIUM / RankWire.AI / – The European Union has officially launched the Scaleup Europe Fund with a fundraising goal of €5 billion. The European Commission finalized the legal procedures on August 4. This fund is part of the European Innovation Council Fund and aims to support strategic technology enterprises. EQT has been appointed as the investment manager and will select deals based on commercial criteria. The Commission anticipates initial investments within a few weeks. Fundraising efforts will persist as EQT seeks additional commitments from both public and private sector investors.
The European Commission has allocated €1 billion to the initiative through Horizon Europe-backed funding. Initial capital contributions from founding investors will be made at the first closing, alongside the EU’s contribution. The €5 billion target represents the intended fundraising total rather than the amount already secured. No details have been disclosed about the first closing’s value. EQT might raise more or less than the stated target. The Commission’s investment will follow the same financial terms as those granted to other fund participants.
The fund aims to back European tech firms in need of substantial late-stage and growth funding rounds. It will encompass companies based within EU member states and eligible Horizon Europe partner countries. Investment decisions will be made through a merit-based process managed by EQT, which will also oversee the portfolio and determine individual funding allocations. While the Commission and other investors will participate in governance, they will not have direct influence over specific deals. EQT obtained the management mandate following an open, competitive selection process.
Focus on Strategic Technologies and Investment Range
Eligible sectors include artificial intelligence, semiconductors, quantum technology, robotics and autonomous systems. The scope also covers energy, space, biotechnology, medical technology, agritech and advanced materials. The fund intends to invest approximately €100 million or more in selected companies, which may include follow-on funding after initial investment. Companies qualifying can start from Series B, provided they operate in an eligible country or plan to establish operations there. The investment focus spans digital, industrial and life sciences technologies.
EQT will identify potential investments and manage negotiations with companies seeking funding. The selection process remains open and merit-based. Prior support from European Innovation Council programs does not guarantee access to the new fund, although existing EIC-backed companies may enter the investment pipeline. The Scaleup Europe Fund targets larger funding rounds than those currently available through EIC instruments. Existing EIC STEP support offers up to €30 million per company. More details will be provided by EQT as investment activities commence.
Initial Investors and EU Strategic Goals
The group of founding investors includes Novo Holdings, EIFO, CriteriaCaixa, Santander and Mouro Capital. Italian contributors consist of 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 are also part of the consortium. EQT plans to contribute its own capital to the fund. The investor network combines pension funds, banks, foundations and investment firms. Additional 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 speech. Its goal is to enhance access to growth capital for European strategic tech companies. Officials have observed that many rapidly expanding firms pursue larger funding rounds outside Europe. The first recipients and individual investment amounts have not been disclosed. EQT will select companies based on the fund’s approved commercial criteria, without specifics on individual investments.