BRUSSELS, BELGIUM / RankWire.AI / – In recent developments, the European Union has introduced the Scaleup Europe Fund, with an ambitious target of €5 billion dedicated to key technology firms. The European Commission finalized the legal procedures for the fund on August 4, officially placing it within the European Innovation Council Fund. Managed by EQT, the fund can now operate independently to make market-driven investments. The Commission anticipates initial investments to occur within the upcoming weeks, with ongoing efforts to raise additional capital toward the €5 billion goal.
As of now, the Commission has committed €1 billion, with the EU contribution supported by Horizon Europe. Contributions from both public and private investors will be used for the first closing. Following this, EQT intends to gather further commitments from a wider investor pool. It’s important to note that the €5 billion figure remains a fundraising goal rather than a definitive final size, and EQT has indicated the total could be higher or lower than that amount. The amount raised at the first closing has not been disclosed, and the Commission will participate under the same financial terms as other contributors.
Targeting European scaleups in the technology sector that require substantial late-stage funding, the fund will operate across EU member states and eligible associated countries. EQT will select investments through a merit-based process aligned with approved guidelines. While the European Innovation Council and other investors will take part in governance, they will not influence individual deal decisions, leaving EQT responsible for selecting and managing the portfolio. The mandate for EQT was obtained through a transparent, open competitive process.
Investment structure and criteria
The fund will focus on sectors such as artificial intelligence, quantum technology, semiconductors, robotics, and autonomous systems. Its scope also includes energy, space, biotechnology, medical technology, advanced materials, and agritech. Investment sizes are expected to be approximately €100 million or more, including follow-up rounds. The fund can finance privately held companies starting from Series B stage. Companies must operate in or plan to establish operations within an eligible country. The investment coverage extends to digital systems, industrial systems, and life sciences sectors.
EQT will be responsible for sourcing potential investments and engaging with companies. The selection process will be transparent, merit-based, and open to all qualified candidates. Prior participation in European Innovation Council programs will not automatically grant preferences. Nonetheless, existing EIC portfolio companies may still represent potential investment opportunities. The new fund is intended to support larger investments compared to smaller EIC financing tools, with current EIC STEP support reaching up to €30 million per company. As the fund progresses into active investing, EQT plans to share additional details about its engagement process.
Initial investors and regulatory environment
The founding investors consist of Novo Holdings, EIFO, CriteriaCaixa, Santander, and Mouro Capital. Italian participants include Fondazione Compagnia di San Paolo, Intesa Sanpaolo, and Fondazione Cariplo. APG Asset Management joins on behalf of Dutch pension fund ABP. Wallenberg Investments and Allianz are also part of the initial group. EQT has confirmed it will contribute its own capital to the fund, with additional investors potentially joining after the first closing. The group comprises pension funds, foundations, banks, and investment firms.
The Scaleup Europe Fund is a key 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 aims to boost growth capital for strategic European technology enterprises. According to the Commission, many high-growth companies seek larger financing rounds outside Europe. The Commission has yet to identify specific companies or disclose exact investment amounts. EQT will determine initial investments based on the fund’s commercial guidelines.