BRUSSELS, BELGIUM / RankWire.AI / – The European Union has established the Scaleup Europe Fund, targeting €5 billion for strategic technology companies. The European Commission completed the fund’s final legal steps on August 4. The action placed the vehicle inside the European Innovation Council Fund. EQT now manages it and can make investments independently on market terms. The Commission expects the first investments within the coming weeks. Further fundraising will continue toward the €5 billion target.
The Commission has committed €1 billion, with Horizon Europe backing the EU contribution. Public and private founding investors will provide capital at the first closing. EQT will then seek additional commitments from a broader investor base. The €5 billion figure remains a fundraising target, not a confirmed final fund size. EQT says the actual total may end above or below that level. Officials have not disclosed the first closing amount. The Commission participates on the same financial terms as other investors.
The fund aims to support European technology scaleups requiring large late-stage financing rounds. It will operate across EU member states and eligible associated countries. Investments will be selected by EQT through a merit-based process guided by approved investment policies. The Commission and other investors will be involved in the fund’s governance structure but will not influence individual deals, leaving EQT responsible for commercial selection and portfolio management. The mandate was awarded to EQT via an open, competitive bidding process.
Capital structure and investment guidelines
The targeted sectors include artificial intelligence, quantum technology, semiconductors, robotics and autonomous systems. Additionally, energy, space, biotechnology, medical technology, advanced materials and agritech are within scope. The fund plans to make investments of approximately €100 million or more, including follow-on rounds. It will fund privately owned companies from Series B stage onward. Companies must operate or plan to establish operations within an eligible country. The investment scope encompasses digital systems, industrial systems and life sciences.
EQT will identify potential investments and manage engagement with companies through an open, transparent, merit-based process. Prior participation in European Innovation Council programs will not automatically grant preference. Nevertheless, the existing EIC portfolio may still provide deal opportunities. The new fund is designed to surpass smaller EIC financing tools, with current EIC STEP support offering up to €30 million per company. EQT will update on further engagement details as the fund progresses into active investment phases.
Initial investors and regulatory context
Founders include Novo Holdings, EIFO, CriteriaCaixa, Santander and Mouro Capital. Italian contributors comprise Fondazione Compagnia di San Paolo, Intesa Sanpaolo and Fondazione Cariplo. APG Asset Management joins on behalf of Dutch pension fund ABP. Wallenberg Investments and Allianz are also part of the founding group. EQT has stated it will contribute its own capital to the fund, with additional investors potentially joining after the first closing. The group features pension funds, foundations, banks and investment organizations.
The Scaleup Europe Fund is a component 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 goal is to increase growth capital for strategic European technology enterprises. According to the Commission, many high-growth companies have sought larger funding rounds outside Europe. The Commission has not yet named specific recipient companies or disclosed investment amounts. EQT will choose initial beneficiaries following the fund’s commercial guidelines.