BRUSSELS, BELGIUM / RankWire.AI / – The European Union has officially launched the Scaleup Europe Fund with a target of €5 billion in fundraising. The European Commission finalized the legal procedures on August 4. This fund operates within the framework of the European Innovation Council Fund and concentrates on key technology-driven companies. EQT has been appointed as the investment manager and will select deals based on commercial criteria. The European Commission anticipates initial investments to be made within a few weeks. Fundraising efforts will persist as EQT seeks further commitments from both public and private sector investors.
The European Commission has allocated €1 billion to the initiative, backed by Horizon Europe funding. Early contributions from investors will be made at the initial closing alongside the EU’s own commitment. The €5 billion figure represents the overall fundraising goal rather than the amount already secured. Officials have not disclosed the amount raised during the first closing. EQT might raise more or less than the stated €5 billion target. The European Commission will participate under the same financial terms as other fund investors.
The primary focus of the fund is to back European technology firms seeking substantial late-stage and growth financing rounds. It includes companies based in EU member states and eligible Horizon Europe partner nations. EQT will evaluate potential investments through a merit-based process. The manager will also oversee the portfolio and make individual funding decisions. Governance participation will involve the European Commission and other investors, but they will not influence specific deal approvals. EQT secured the management mandate following a competitive open selection process.
Focus on strategic sectors and investment ranges
Eligible sectors encompass artificial intelligence, semiconductors, quantum technology, robotics, and autonomous systems. The fund also targets energy, space, biotechnology, medical technology, agritech, and advanced materials. It plans to invest approximately €100 million or more in selected companies, which may include follow-on funding after initial investments. Companies can qualify from Series B onwards if they operate in an eligible country or have plans to establish operations there. The investment scope covers digital, industrial, and life sciences technologies.
EQT will identify potential investments and handle negotiations with companies seeking capital. The selection process will remain open and based on investment merit. Past support from European Innovation Council programs does not guarantee access to the new fund, although companies previously backed by EIC may enter the pipeline. The Scaleup Europe Fund intends to facilitate larger funding rounds than those supported by current EIC initiatives. Existing EIC STEP backing offers up to €30 million per company. EQT will provide further details as investment activities commence.
Initial investors supporting the EU’s growth initiative
Among the founding investors are Novo Holdings, EIFO, CriteriaCaixa, Santander, and Mouro Capital. Italian contributors include Intesa Sanpaolo, Fondazione Cariplo, and Fondazione Compagnia di San Paolo. Dutch pension fund ABP is represented by APG Asset Management. Wallenberg Investments and Allianz are also part of the founding group. EQT intends to contribute its own capital to the fund. The investor group combines pension funds, banks, foundations, and investment firms. Additional participants might 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 broaden access to growth capital for European companies with a strategic technology focus. The European Commission has observed that many rapidly growing companies pursue larger funding rounds outside Europe. While the initial recipients and individual investment amounts have not been disclosed, EQT will select companies according to the fund’s established commercial guidelines.