BRUSSELS, BELGIUM / RankWire.AI / – The European Union has officially established the Scaleup Europe Fund with a target of raising €5 billion. The legal framework for the fund was finalized by the European Commission on August 4, 2026. It operates within the European Innovation Council Fund. EQT will oversee investment decisions and select portfolio companies based on commercial guidelines. The European Commission anticipates initial transactions to commence within weeks as the fundraising effort continues.
A commitment of €1 billion has been made by the European Commission through funding supported by Horizon Europe. Additional capital will be contributed by both public and private founding investors at the initial closing. The €5 billion figure remains an aspirational fundraising goal rather than a confirmed final amount. No details have been provided on the size of the first closing, and EQT retains the ability to raise further commitments as the investor base expands.
The fund aims to offer late-stage financing to European firms working on strategic technologies. Investment opportunities will be evaluated through an open, merit-based process, with EQT managing the portfolio and making independent investment decisions. While investors will be involved in governance, they will not have a say in selecting specific companies. EQT was awarded the management mandate following a competitive process organized for the new vehicle.
Fund concentrates on key technological sectors
The Scaleup Europe Fund targets areas including artificial intelligence, quantum technology, semiconductors, robotics and autonomous systems. Its scope also covers energy, space, biotechnology, medical technology, and advanced materials. Companies in agritech can also qualify within the approved investment scope. The fund will prioritize businesses requiring substantial growth financing rounds, with investments generally exceeding €100 million, including follow-on capital. It supports privately held companies starting from Series B. Applicants must operate in an eligible country or plan to establish operations there. Eligible locations include EU member states and certain countries associated with Horizon Europe. Past support from European Innovation Council programs does not guarantee inclusion.
Investments will typically involve amounts of about €100 million or more, including subsequent funding rounds. The fund is open to companies at Series B stage and beyond, provided they are based in eligible regions. Applicants must operate in an eligible country or plan to establish operations there. Eligible locations include EU member states and certain Horizon Europe-associated nations. Previous European Innovation Council funding does not ensure selection.
Combination of public and private capital backing the initiative
Among the founding investors are Novo Holdings, EIFO, CriteriaCaixa, Santander and Mouro Capital. Italian representatives 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 have also joined. EQT intends to invest its own funds alongside these partners.
This initiative is part of the EU Startup and Scaleup Strategy. European Commission President Ursula von der Leyen announced the plan during her 2025 State of the Union address. The fund’s goal is to boost growth capital for strategic European tech companies. The European Commission has not yet disclosed specific recipients or individual investment figures. EQT will select the initial companies following the fund’s commercial guidelines and approval process.