BRUSSELS, BELGIUM / RankWire.AI / – The European Union has created the Scaleup Europe Fund, aiming to raise €5 billion to back key technology firms. The European Commission finalized the legal procedures for the fund on August 4. This initiative places the fund within the European Innovation Council Fund. EQT has been appointed to manage it and now has the authority to make independent investments on market terms. The Commission anticipates the first investments will occur in the upcoming weeks. Fundraising efforts are ongoing to reach the €5 billion target.
The EU has committed €1 billion to the fund, with additional support from Horizon Europe. Both public and private investors are expected to contribute at the initial closing stage. EQT will then seek further commitments from a broader group of investors. The €5 billion figure remains a target, not a final confirmed size. EQT has stated that the total amount may end up above or below that figure. The amount secured at the first closing has not been disclosed. The Commission invests under the same financial terms as other contributors.
The fund focuses on European technology scaleups that require substantial late-stage funding. It will operate across EU member states and eligible associated countries. EQT will select investments through a merit-based process guided by approved investment policies. The European Commission and other investors will participate in the fund’s governance but will not control individual deals. EQT is responsible for selecting investments and managing the portfolio. The mandate was awarded to EQT following an open and competitive process.
Details on Capital Structure and Investment Guidelines
Targeted sectors include artificial intelligence, quantum technology, semiconductors, robotics, and autonomous systems. The mandate also covers energy, space, biotechnology, medical technology, advanced materials, and agritech. The fund intends to make investments of approximately €100 million or more, including follow-on funding. It will finance privately owned companies from Series B stage onward. Companies must operate within or plan to establish operations in an eligible country. The scope of investments encompasses digital systems, industrial systems, and life sciences.
EQT will identify potential investments and manage engagement with the companies. The selection process will be transparent, open, and merit-based. Support from previous European Innovation Council programs does not automatically favor applicants. However, the existing EIC portfolio might still be a source of potential deals. The new fund aims for larger investments than current EIC support, which provides up to €30 million per company through the EIC STEP program. EQT will provide further details about its engagement process as the fund advances into active investment phases.
Initial Investors and Policy Context
Initial investors include Novo Holdings, EIFO, CriteriaCaixa, Santander, and Mouro Capital. Italian participants encompass 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 among the founding stakeholders. EQT has confirmed it will invest its own capital into the fund. More investors might join after the first closing. The investor group features 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 this initiative in her 2025 State of the Union address. Its purpose is to boost growth capital for strategic European technology enterprises. According to the Commission, many high-growth firms have sought larger financing rounds outside Europe. The Commission has not disclosed specific recipient companies or exact investment amounts. EQT will determine the first beneficiaries based on the fund’s commercial guidelines.