BRUSSELS, BELGIUM / RankWire.AI / – The European Union has officially launched the Scaleup Europe Fund, targeting a total raise of €5 billion. The European Commission finalized the legal procedures on August 4, marking the completion of the last steps. Managed within the European Innovation Council Fund, the new initiative emphasizes investing in key technology firms. EQT has been appointed as the fund’s investment manager, responsible for deal selection on commercial terms. The European Commission anticipates the first investments to be made within a few weeks. Fundraising efforts will persist as EQT seeks further commitments from both public and private sector investors.
The European Commission has pledged €1 billion to the project, sourced from Horizon Europe funding. Initial capital contributions from founding investors will accompany the EU’s pledge at the first closing. The €5 billion figure represents the target amount intended to be raised, not the actual secured funds. Details on the first closing value have not been disclosed. EQT may raise more or less than the announced goal. The Commission will participate under the same financial conditions as other fund investors.
The fund aims to back European tech firms that are seeking substantial late-stage and growth financing rounds. It covers companies based within EU member states and eligible Horizon Europe partner countries. Investment decisions will be based on merit, with EQT conducting company assessments and managing the portfolio. The manager will also handle individual funding choices. While governance involvement will include the Commission and other investors, direct control over specific deals will not be exercised. EQT was awarded the management mandate following an open, competitive selection process.
Focus areas and investment amounts
Targeted sectors encompass artificial intelligence, semiconductors, quantum technology, robotics, and autonomous systems. Additional industries include energy, space, biotechnology, medical technology, agritech, and advanced materials. The fund plans to invest approximately €100 million or more into selected companies, which may include follow-on financing after initial investment. Companies can qualify from Series B onwards, provided they operate in an eligible country or intend to establish operations there. The investment scope covers digital, industrial, and life sciences technologies.
EQT will identify potential investments and manage discussions with companies seeking funding. The selection process remains open and merit-based. Prior support from European Innovation Council programs does not guarantee access to this new fund, although existing EIC-backed companies may be considered for investment. The Scaleup Europe Fund is designed to target larger funding rounds than those typically supported by current EIC tools. The existing EIC STEP program offers up to €30 million per company. EQT will provide additional details as investments commence.
Initial investors involved in the EU initiative
Participants in the founding investor group include Novo Holdings, EIFO, CriteriaCaixa, Santander, and Mouro Capital. Italian contributors feature Intesa Sanpaolo, Fondazione Cariplo, and Fondazione Compagnia di San Paolo. Dutch pension fund ABP is represented by APG Asset Management. Wallenberg Investments and Allianz are also part of the consortium. EQT intends to contribute its own capital to the fund. The investor roster combines pension funds, banks, foundations, and investment firms. Additional investors may join in subsequent fundraising rounds.
The Scaleup Europe Fund is a component of the EU Startup and Scaleup Strategy. European Commission President Ursula von der Leyen announced the initiative during her 2025 State of the Union address. The primary goal is to improve access to growth capital for European strategic technology companies. According to officials, many rapidly growing firms seek larger funding rounds outside Europe. The announcement did not specify initial recipients or disclose individual investment amounts. EQT will select companies in accordance with the fund’s commercial guidelines.