BRUSSELS, BELGIUM / RankWire.AI / – European Union has officially established the Scaleup Europe Fund with a target of raising €5 billion. The legal framework for the fund was finalized by the European Commission on August 4, 2026. The fund operates within the European Innovation Council Fund. EQT will oversee investment decisions and select participating companies based on commercial criteria. The European Commission anticipates that initial transactions could commence in a few weeks as the fundraising process advances.
A total of €1 billion has been committed by the European Commission through Horizon Europe-supported financing. Additional capital will be contributed by public and private founding investors during the initial closing. The €5 billion figure remains a goal for fundraising, not a confirmed final sum. Details about the amount raised at the first closing have not been disclosed, and EQT has the ability to secure further commitments as the investor base grows.
The fund aims to provide late-stage funding to European firms working on strategic technological innovations. Investment opportunities will be evaluated via an open, merit-based process managed by EQT. The firm will independently oversee portfolio management and make individual investment choices. While investors will take part in governance, they will not influence specific company selections. EQT was awarded the management mandate following a competitive process conducted for the new fund.
Fund concentrates on key technology sectors
artificial intelligence, quantum computing, semiconductors, robotics, and autonomous systems are among the sectors covered by the Scaleup Europe Fund. The scope also includes energy, space, biotechnology, medical technology, and advanced materials. Agritech enterprises can qualify within the approved investment areas. The fund’s focus is on companies requiring substantial growth financing rounds, with eligible activities spanning digital tech, industrial systems, and life sciences.
Typically, individual investments are expected to be approximately €100 million or more, including follow-on funding. The fund is open to supporting privately held companies from Series B funding onwards. Eligible companies must operate within an eligible country or intend to establish operations there. Countries eligible for support include EU member states and certain nations associated with Horizon Europe. Prior support from European Innovation Council programs does not guarantee eligibility.
Funding from public and private sources
Participants in the founding phase include Novo Holdings, EIFO, CriteriaCaixa, Santander, and Mouro Capital. Italian investors are represented by Intesa Sanpaolo, Fondazione Cariplo, and Fondazione Compagnia di San Paolo. Dutch pension fund ABP is participating through APG Asset Management. Additionally, Wallenberg Investments and Allianz have joined the initiative. EQT plans to contribute its own capital alongside other investors.
This initiative forms a component of the EU Startup and Scaleup Strategy. European Commission President Ursula von der Leyen unveiled this plan during her 2025 State of the Union address. The goal of the fund is to boost the amount of growth capital available for crucial European technology companies. The Commission has not disclosed specific recipients or announced individual investment figures. EQT will determine the first investments under the fund’s approved commercial framework.
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