BRUSSELS, BELGIUM / RankWire.AI / – The European Union has officially established the Scaleup Europe Fund with a target of raising €5 billion. The European Commission finalized the legal setup of the fund on August 4, 2026, situating it within the European Innovation Council Fund. EQT is designated to oversee investments and select participating companies based on commercial guidelines. As fundraising efforts continue, the first deals are anticipated to commence within a few weeks.
Supported by Horizon Europe, the European Commission has committed €1 billion to the fund, with additional capital expected from public and private founding investors during the initial closing. The €5 billion figure remains a fundraising goal rather than a confirmed final amount. Details about the size of the first closing have not been disclosed, and EQT has the capacity to secure further commitments as the investor base expands.
The fund aims to provide late-stage funding to European enterprises focused on strategic technological development. Opportunities will be evaluated through a transparent, merit-based selection process, with EQT managing the portfolio and making independent investment decisions. While investors will participate in governance, they will not influence specific company selections. EQT secured the management mandate following a competitive process organized for the new fund.
Fund focuses on key technology sectors
The Scaleup Europe Fund invests in artificial intelligence, quantum computing, semiconductors, robotics, and autonomous systems. Its scope also encompasses energy, space exploration, biotechnology, medical tech, and advanced materials. Agritech firms can also qualify within the approved investment areas. The fund concentrates on companies requiring substantial growth financing rounds, including digital tech, industrial systems, and life sciences.
Typically, individual investments are expected to be around €100 million or more, including follow-on funding. The fund is authorized to support privately owned companies from Series B and later stages. Eligible applicants must operate within an eligible country or plan to establish operations there. Eligible locations include EU member states and certain countries associated with Horizon Europe. Having received previous support from European Innovation Council programs does not guarantee selection.
Funding sourced from both public and private sectors
Participants in the founding phase include Novo Holdings, EIFO, CriteriaCaixa, Santander, and Mouro Capital. Italian investors such as Intesa Sanpaolo, Fondazione Cariplo, and Fondazione Compagnia di San Paolo are also involved. Dutch pension fund ABP’s partner, APG Asset Management, has joined, along with Wallenberg Investments and Allianz. EQT plans to contribute its own capital alongside these investors.
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 speech. The objective is to boost the amount of growth capital available to critical European technology firms. The Commission has not disclosed specific recipients or individual investment amounts, but EQT will select the initial portfolio companies within the fund’s authorized commercial framework.