BRUSSELS, BELGIUM / RankWire.AI / – The European Union has initiated the Scaleup Europe Fund, aiming to raise €5 billion to support key technology firms across Europe. On August 4, the European Commission finalized the legal procedures for establishing the fund, integrating it within the European Innovation Council Fund. Managed now by EQT, the fund is set to operate independently and make market-based investments. Officials anticipate the first investments will occur in the upcoming weeks, with ongoing efforts to reach the €5 billion target through additional fundraising.
The EU has committed €1 billion of the total, with contributions from Horizon Europe. Both public and private investors will contribute capital at the initial closing, after which EQT will seek further commitments from a wider investor pool. The €5 billion figure is a target rather than a guaranteed final size; EQT has indicated the total may be above or below that level. The first closing amount has not been publicly disclosed, and the Commission will invest on the same terms as other stakeholders.
Designed to support European tech scaleups requiring large late-stage financing, the fund will operate across EU member states and associated countries eligible for investment. Investment decisions will be made through a merit-based process aligned with approved guidelines. While the European Innovation Council and other investors will participate in governance, they will not influence individual deal choices, which are left to EQT. The selection process was awarded to EQT through an open, competitive bidding process.
Investment framework and eligibility criteria
Focus sectors include artificial intelligence, quantum technology, semiconductors, robotics, energy, space, biotechnology, medical tech, advanced materials, and agritech. The fund aims to invest approximately €100 million or more per deal, including follow-on rounds, primarily supporting private companies from Series B onward. Firms must operate within or plan to establish within an eligible country, with the scope covering digital systems, industrial applications, and life sciences.
EQT will identify potential investments and manage engagement with target companies. The selection process remains transparent, merit-based, and open, with no automatic preference given to companies in the European Innovation Council’s existing portfolio. However, the current EIC portfolio might still serve as a source for potential deals. The fund’s planned investment size exceeds the current EIC STEP support, which caps at €30 million per company. EQT will provide updates as the fund advances into active investment phases.
Initial investors and governance structure
Key founding investors include Novo Holdings, EIFO, CriteriaCaixa, Santander, and Mouro Capital. Italian contributors feature Fondazione Compagnia di San Paolo, Intesa Sanpaolo, and Fondazione Cariplo. Dutch pension fund ABP is represented by APG Asset Management, while Wallenberg Investments and Allianz are also part of the founding group. EQT has committed its own capital, and additional investors may join after the first closing. The group comprises pension funds, foundations, banks, and investment firms.
The Scaleup Europe Fund is a component of the EU Startup and Scaleup Strategy, announced by European Commission President Ursula von der Leyen during her 2025 State of the Union address. The initiative is designed to boost growth capital for Europe’s strategic technology companies. According to the Commission, many high-growth firms have sought larger funding rounds outside the continent. While the Commission has not specified any recipient companies or disclosed investment amounts, EQT will select initial beneficiaries following the fund’s investment guidelines.