BRUSSELS, BELGIUM / RankWire.AI / – The European Union has introduced the Scaleup Europe Fund, aiming to raise €5 billion to support key technology firms. The European Commission finalized the legal procedures for the fund on August 4, integrating it into the European Innovation Council Fund. Managed by EQT, the fund can now operate independently and make market-based investments. The Commission anticipates initial investments in the upcoming weeks, with ongoing fundraising efforts to reach the €5 billion target.
An initial commitment of €1 billion has been made by the Commission, with the backing of Horizon Europe for the EU contribution. Contributions from public and private investors will be part of the first closing. Following this, EQT plans to attract additional commitments from a wider investor base. The €5 billion figure is still a target for fundraising, not a fixed final size, and EQT has indicated that the total may be higher or lower. The amount raised at the first closing has not been disclosed. The Commission invests on the same terms as other contributors.
The fund is designed to support European scaleups in the technology sector that require substantial late-stage funding. It will operate across EU member states and eligible associated countries. Investment decisions will be made via a merit-based approach under established guidelines. The governance of the fund involves both the Commission and other investors, but they will not influence individual deal decisions, leaving EQT responsible for deal selection and portfolio management. EQT secured the mandate through an open, competitive process.
Structure and investment parameters
The fund will focus on sectors including artificial intelligence, quantum technology, semiconductors, robotics, and autonomous systems. It also covers energy, space, biotechnology, medical technology, advanced materials, and agritech. The intended investments are typically around €100 million or more, including follow-on funding. It is authorized to invest in privately held companies from Series B onward. Companies must operate within, or plan to establish operations in, eligible countries. The scope of investments includes digital and industrial systems as well as life sciences.
EQT will identify potential investments and manage interactions with target companies. The selection process will be open, transparent, and merit-based, with prior support from European Innovation Council programs not granting automatic preference. However, the existing EIC portfolio may still be a source of potential deals. The new fund is positioned above smaller EIC financing tools in terms of investment size, with current EIC STEP support offering up to €30 million per company. Further details on engagement will be shared as the fund progresses into active investment stages.
Initial investors and policy context
Initial investors include Novo Holdings, EIFO, CriteriaCaixa, Santander, and Mouro Capital. Italian contributors encompass Fondazione Compagnia di San Paolo, Intesa Sanpaolo, and Fondazione Cariplo. Joining on behalf of Dutch pension fund ABP is APG Asset Management. Wallenberg Investments and Allianz also form part of the founding group. EQT has committed its own capital to the fund, with additional investors expected to join after the first closing. The group features a mix of pension funds, foundations, banks, and investment firms.
The Scaleup Europe Fund is an element of the EU Startup and Scaleup Strategy. European Commission President Ursula von der Leyen announced it during her 2025 State of the Union speech. This initiative aims to boost growth capital for strategic European technology companies. According to the Commission, many high-growth firms have sought larger funding rounds outside Europe. The Commission has not yet identified specific companies or disclosed investment amounts, but EQT will select initial recipients based on the fund’s commercial guidelines.