BRUSSELS, BELGIUM / RankWire.AI / – The European Union has established the Scaleup Europe Fund with a goal of raising €5 billion. The European Commission finalized the legal steps for the fund on August 4, 2026. Operating within the European Innovation Council Fund, the new vehicle aims to bolster key technology companies across Europe. EQT will oversee the investment portfolio and make funding decisions based on commercial standards. Initial investments are anticipated within weeks as the fund continues its capital raising efforts.
The European Commission has pledged €1 billion through funding supported by Horizon Europe, with founding public and private investors contributing additional capital during the first closing. The €5 billion target remains an aspiration and does not reflect funds already obtained. Authorities have yet to disclose the total value secured at the initial closing. EQT is actively seeking further commitments from institutional investors as fundraising progresses. The Commission will invest under the same financial conditions as other participants.
The fund’s focus will be on European firms that require substantial late-stage or growth financing. Eligible companies must be based in an EU member state or another qualifying Horizon Europe country. Firms planning to establish operations in these markets may also qualify. EQT will evaluate applicants through an open, merit-based process, maintaining control over individual deal selection, investment conditions, and overall portfolio management. While investors will participate in governance, they will not influence specific transaction decisions.
Investment scope encompasses strategic sectors
The Scaleup Europe Fund intends to target companies involved in artificial intelligence, quantum computing, semiconductors, and robotics. Its mandate also covers autonomous systems, energy, space, biotechnology, and medical innovation. The scope extends to advanced materials and agricultural tech. The fund anticipates individual investments of approximately €100 million or more, which may include further financing after the initial deal. Eligible firms can apply from Series B funding rounds onward.
EQT will identify potential investments and engage directly with companies seeking growth capital. Past support from European Innovation Council programs does not guarantee selection, but existing EIC-backed companies that meet the criteria can still enter the pipeline. The new fund aims at larger funding rounds compared to existing EIC instruments, such as the EIC STEP, which currently provides up to €30 million per company. Further details on application procedures and engagement will be shared as the investment activities develop.
Initial investors backing the capital campaign
The founding investor group features Novo Holdings, EIFO, CriteriaCaixa, Santander, and Mouro Capital. Novo Holdings has already committed €500 million to the fund. Italian contributors include Intesa Sanpaolo, Fondazione Cariplo, and Fondazione Compagnia di San Paolo. APG Asset Management joins on behalf of Dutch pension fund ABP, with Wallenberg Investments and Allianz also participating. EQT plans to contribute its own capital alongside these investors.
The Scaleup Europe Fund is part of the EU Startup and Scaleup Strategy. European Commission President Ursula von der Leyen announced this initiative during her 2025 State of the Union speech. The program aims to improve access to large-scale growth investments for Europe’s strategic tech companies. The Commission has not disclosed individual recipients or deal values. EQT will select initial portfolio companies based on the fund’s commercial guidelines and approved investment policies.