BRUSSELS, BELGIUM / RankWire.AI / – The European Union has created the Scaleup Europe Fund with a target of €5 billion, aimed at supporting key technology firms. The European Commission finalized the legal steps for the fund on August 4. This move incorporated the fund into the European Innovation Council Fund. EQT is now responsible for managing it and can make independent investments on market terms. The European Commission expects the initial investments to occur in the upcoming weeks. Fundraising efforts will continue toward reaching the €5 billion goal.
The EU has committed €1 billion, with backing from Horizon Europe for the EU contribution. Initial capital will come from public and private investors, including those involved in the first closing. EQT will then seek further commitments from a wider investor group. The €5 billion figure remains a fundraising goal, not a final confirmed size. EQT indicates the total could be higher or lower than that amount. The amount raised at the first closing has not been disclosed. The European Commission invests on the same financial terms as other contributors.
The fund is designed for European technology scaleups that require substantial late-stage funding. It will operate across EU member states and eligible associated countries. Investment decisions will be based on a merit-driven process following approved guidelines. The European Commission and other investors will participate in the fund’s governance but will not influence individual deals. EQT will handle the commercial selection and portfolio management. The mandate was awarded through a transparent, competitive process.
Structure and Investment Guidelines
Targeted sectors include artificial intelligence, quantum technology, semiconductors, robotics, and autonomous systems. The mandate also encompasses energy, space, biotechnology, medical technology, advanced materials, and agritech. The fund aims to invest around €100 million or more per deal, including follow-on rounds. It can support privately owned firms from Series B onward. Companies must operate in or plan to establish themselves within an eligible country. The scope covers digital systems, industrial systems, and life sciences.
EQT will identify potential investments and manage interactions with companies. Selection will follow an open, transparent, merit-based approach. Past involvement with European Innovation Council programs will not guarantee automatic preference. The existing EIC portfolio might still offer potential deal opportunities. The new fund surpasses smaller EIC financing tools in investment size. Currently, EIC STEP support reaches up to €30 million per company. EQT will provide updates as the fund advances into active investment phases.
Initial Investors and Policy Context
Early 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 plans to invest its own capital into the fund. Additional investors may join after the first closing. The group comprises pension funds, foundations, banks, and investment firms.
The Scaleup Europe Fund is part of the EU Startup and Scaleup Strategy. European Commission President Ursula von der Leyen announced the initiative during her 2025 State of the Union speech. The EU created this program to boost growth capital for key European technology companies. Many high-growth firms have looked outside Europe for larger funding rounds, according to the Commission. The Commission has yet to specify any companies receiving support or detail investment amounts. EQT will choose the initial beneficiaries following the fund’s commercial guidelines.