BRUSSELS, BELGIUM / RankWire.AI / – The European Union has introduced the Scaleup Europe Fund, aiming to raise €5 billion. The European Commission finalized the legal procedures for launching the fund on August 4, 2026. It operates within the European Innovation Council Fund and is designed to back key technology enterprises. EQT will oversee the investment portfolio and determine allocations based on commercial principles. Initial transactions are anticipated within a few weeks, as the manager continues gathering funds.
The European Commission has pledged €1 billion through Horizon Europe-backed funding. During the initial closing, both public and private investors will contribute additional capital. The €5 billion goal is an estimate and does not reflect funds already secured. Authorities have not disclosed the total amount raised during the first closing. EQT will continue seeking commitments from institutional backers as fundraising progresses. The Commission plans to invest under the same financial conditions as other investors.
The fund will target European firms that need substantial late-stage or growth financing rounds. Eligible companies must operate within an EU member state or another qualifying Horizon Europe nation. Firms planning to establish operations there may also qualify. EQT will evaluate potential investments through an open, merit-based process. It retains control over selecting deals, setting investment terms, and managing the portfolio. Investors will participate in governance but will not influence specific transactions directly.
The investment focus encompasses key strategic sectors
The Scaleup Europe Fund will consider companies involved in artificial intelligence, quantum technology, semiconductors, and robotics. Its scope also includes autonomous systems, energy, space, biotechnology, and medical technology. The scope extends to advanced materials and agricultural tech. Typically, individual investments are expected to be around €100 million or more, potentially including additional funding rounds after initial investments. Companies can apply starting from Series B and beyond.
EQT will identify investment prospects and engage directly with growth-seeking companies. Support from European Innovation Council programs in the past does not guarantee selection. Existing EIC-backed firms can still qualify if they meet the necessary criteria. The fund aims for larger financing rounds than those currently available through EIC instruments, which offer up to €30 million per company via EIC STEP funding. Further details on application and involvement will be shared as the investment activity unfolds.
Initial investors aid in capital collection efforts
The founding investor group comprises Novo Holdings, EIFO, CriteriaCaixa, Santander, and Mouro Capital. Novo Holdings has already announced a commitment of €500 million to the fund. Italian investors include Intesa Sanpaolo, Fondazione Cariplo, and Fondazione Compagnia di San Paolo. APG Asset Management joins on behalf of Dutch pension fund ABP. Wallenberg Investments and Allianz are also part of the group. EQT plans to contribute its own capital along with these investors.
The Scaleup Europe Fund is part of the EU Startup and Scaleup Strategy. European Commission President Ursula von der Leyen unveiled the initiative during her 2025 State of the Union address. The program aims to improve access to substantial growth investments for Europe’s strategic technology firms. The Commission has yet to specify any recipients or disclose individual deal sizes. EQT will select initial companies based on the fund’s commercial guidelines and approved investment criteria.