BRUSSELS, BELGIUM / RankWire.AI / – The European Union has launched the Scaleup Europe Fund with a fundraising goal of €5 billion. The European Commission finalized the legal procedures for establishing the fund on August 4, 2026. Operating within the European Innovation Council Fund framework, the fund aims to back strategic technology enterprises. EQT will oversee the portfolio and select investments following commercial guidelines. The first deals are anticipated in the coming weeks as the manager continues to gather capital.
The European Commission has pledged €1 billion, supported by Horizon Europe funding. During the initial closing, founding public and private investors will contribute additional capital. The €5 billion figure remains an aspirational target and does not reflect funds already secured. Authorities have not disclosed the total value of the first closing. As fundraising advances, EQT will seek further commitments from institutional investors. The Commission will invest under the same financial conditions as other participants.
The fund targets European firms needing significant late-stage or growth funding rounds. Companies must operate within an EU member state or another eligible Horizon Europe country. Those planning to establish operations in these regions may also qualify. EQT will evaluate candidates through an open and merit-based process, controlling individual deal selection, investment terms, and portfolio management. While investors will participate in governance, they will not direct specific transactions.
Strategic sectors shape the investment mandate
The Scaleup Europe Fund considers companies engaged in artificial intelligence, quantum technology, semiconductors, and robotics. Its mandate also encompasses autonomous systems, energy, space, biotechnology, and medical technology. The scope extends to advanced materials and agricultural technology. The fund anticipates individual investments of approximately €100 million or more, which can include additional financing following an initial transaction. Eligible companies can participate from Series B onward.
EQT will identify potential investments and engage directly with companies seeking growth capital. Prior support from European Innovation Council programs does not guarantee selection. Existing EIC-backed companies can still qualify if they meet the criteria. This new vehicle aims at larger funding rounds than current EIC instruments, with EIC STEP funding currently offering up to €30 million per company. EQT will publish further details on applications and engagement as investment activities unfold.
Initial investors back the capital raising process
The founding investor group includes Novo Holdings, EIFO, CriteriaCaixa, Santander, and Mouro Capital. Novo Holdings previously announced a commitment of €500 million to the fund. Italian contributors include Intesa Sanpaolo, Fondazione Cariplo, and Fondazione Compagnia di San Paolo. On behalf of Dutch pension fund ABP, APG Asset Management joins the group. Wallenberg Investments and Allianz are also part of the consortium. 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 the initiative during her 2025 State of the Union address. The program aims to improve access to substantial growth investments for European strategic technology companies. The Commission has not disclosed any specific recipients or individual deal sizes. EQT will select its initial investments based on the fund’s commercial framework and approved investment criteria.