BRUSSELS, BELGIUM / RankWire.AI / – In the broader effort to boost strategic technology companies within Europe, the European Union has introduced the Scaleup Europe Fund, which targets €5 billion in funding. The European Commission finalized the legal formalities for the fund on August 4, integrating it into the European Innovation Council Fund. Managed by EQT, the fund is now positioned to make independent market-driven investments. The Commission anticipates initial investments to occur in the upcoming weeks, with ongoing efforts to raise additional capital towards the €5 billion goal.
The EU has pledged €1 billion of the total, with backing from Horizon Europe to support the EU contribution. Both public and private investors are expected to contribute capital during the first closing. Following this, EQT will seek further commitments from a wider group of investors. The €5 billion figure remains a target for fundraising and not a finalized fund size, as EQT has indicated the ultimate amount could be higher or lower. The initial closing amount has not been publicly disclosed, and the Commission is participating on the same financial terms as other investors.
This fund aims to support European technology scaleups requiring substantial late-stage financing rounds. Its scope includes all EU member states and eligible associated countries. Investments will be made through a merit-based approach in accordance with approved guidelines, with EQT responsible for the selection process. The governance of the fund will include representatives from the Commission and other investors, who will not influence individual deal decisions. EQT secured the mandate through an open, competitive process.
Details on structure and investment criteria
Focus sectors include artificial intelligence, quantum technology, semiconductors, robotics and autonomous systems, alongside energy, space, biotechnology, medical technology, advanced materials, and agritech. The fund plans to make investments of approximately €100 million or more, including follow-on rounds. It will back privately held companies from Series B stage onward, with operations in or plans to establish in an eligible country. Investment categories encompass digital systems, industrial systems, and life sciences.
EQT is responsible for sourcing investment opportunities and engaging with potential portfolio companies. The selection process will be transparent, merit-based, and open, with no automatic preference given to companies from existing European Innovation Council programs, although current EIC portfolio companies may still be considered as potential deals. The new fund is positioned above smaller EIC financing tools, such as the current EIC STEP program, which supports up to €30 million per company. Further details about engagement and investments will be shared as the fund progresses into active deployment.
Initial investors and policy context
Key founding investors include Novo Holdings, EIFO, CriteriaCaixa, Santander, and Mouro Capital. Italian contributors feature 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 founding group. EQT has committed its own capital to the fund, with additional investors potentially participating after the first closing. The group comprises pension funds, foundations, banks, and investment organizations.
The Scaleup Europe Fund is a component of the EU Startup and Scaleup Strategy, which was announced by European Commission President Ursula von der Leyen during her 2025 State of the Union address. This initiative was designed to increase growth capital for strategic European technology firms, addressing the challenge of many high-growth companies seeking larger financing rounds outside of Europe, as noted by the Commission. The authorities have not yet named specific companies or disclosed individual investment amounts, but EQT will identify the initial beneficiaries based on the fund’s commercial guidelines.