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 legal procedures on August 4. Operating under the European Innovation Council Fund, the initiative targets key technology firms with strategic importance. EQT has been appointed as the investment manager and will select deals based on commercial considerations. The Commission anticipates making its initial investments within a few weeks. Fundraising efforts are ongoing as EQT seeks further commitments from both public and private sector investors.
The European Commission has committed €1 billion to the project, secured through Horizon Europe funding. Initial contributions from founding investors will be made during the first closing, alongside the EU’s financial support. The €5 billion figure reflects the fundraising goal rather than confirmed capital. Authorities have not disclosed the amount raised in the first closing. EQT may raise either more or less than the stated goal, and the Commission will participate under the same financial terms as other investors.
The fund aims to back European technology companies that require significant late-stage and growth financing rounds. It includes businesses from EU member states and eligible Horizon Europe partner nations. EQT will evaluate companies through a merit-based process, overseeing the investment decisions and portfolio management. While the Commission and other investors will have governance roles, they will not influence specific deal selections. EQT secured the management mandate following an open, competitive selection process.
Focus areas and investment scope
Target industries include artificial intelligence, semiconductors, quantum technology, robotics, and autonomous systems. The scope also covers sectors such as energy, space, biotechnology, medical technology, agritech, and advanced materials. The fund plans to invest around €100 million or more in chosen companies, which may include follow-on funding after initial investment. Companies can qualify from Series B onward, provided they operate in an eligible country or intend 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 merit-based and open. Support previously received from European Innovation Council programs does not guarantee access to the new fund, though companies backed by the EIC may still enter the pipeline. The Scaleup Europe Fund aims for larger financing rounds than existing EIC tools; for instance, EIC STEP offers up to €30 million per company. EQT will provide further details as investment activity ramps up.
Initial investors and EU backing
The initial investor group includes Novo Holdings, EIFO, CriteriaCaixa, Santander, and Mouro Capital. Italian contributors encompass Intesa Sanpaolo, Fondazione Cariplo, and Fondazione Compagnia di San Paolo. Dutch pension fund ABP is represented by APG Asset Management. Wallenberg Investments and Allianz also participate. EQT plans to contribute its own capital to the fund. The investor base comprises pension funds, banks, foundations, and investment firms. Additional participants may join in later fundraising rounds.
This initiative is part of the EU Startup and Scaleup Strategy. European Commission President Ursula von der Leyen announced the establishment during her 2025 State of the Union speech. The goal is to improve access to growth capital for European strategic technology companies. Officials have noted that many rapidly expanding firms pursue larger funding rounds outside Europe. The first investment recipients and specific amounts have not yet been disclosed. EQT will select companies based on the fund’s approved commercial criteria.