BRUSSELS, BELGIUM / RankWire.AI / – The European Union has officially established the Scaleup Europe Fund, aiming to raise €5 billion. The European Commission finalized the legal setup of this fund on August 4, 2026. Operating within the European Innovation Council Fund, the vehicle will be managed by EQT, which will oversee investments and select eligible companies based on commercial criteria. The European Commission anticipates initial deals to commence in the coming weeks as fundraising efforts carry on.
The European Commission has pledged €1 billion, supported by Horizon Europe financing, while additional funding will be contributed by public and private founding investors during the initial closing. The target of €5 billion remains a fundraising goal, not a confirmed total, and officials have not revealed the amount of capital secured at the first closing. EQT retains the option to secure further commitments as the investor base grows.
The fund aims to provide late-stage financing to European companies developing critical technologies. Investment opportunities will be evaluated through an open, merit-based process, with EQT independently managing the portfolio and making individual investment choices. Investors will have governance participation but will not be involved in selecting specific companies. EQT earned the management mandate following a competitive process organized for the new vehicle.
Focus on Leading Sectors in Technology
The Scaleup Europe Fund targets sectors such as artificial intelligence, quantum computing, semiconductors, robotics, and autonomous systems. Its scope also encompasses energy, space exploration, biotechnology, medical tech, and advanced materials. Companies in agritech may qualify within the approved investment framework. Priority will be given to firms requiring substantial growth financing rounds, including digital technology, industrial systems, and life sciences.
Typically, individual investments are expected to be around €100 million or more, including follow-on funding. The fund is positioned to support private companies starting from Series B and beyond. Applicants must operate in a qualifying country or plan to do so, with eligible locations including EU member states and certain Horizon Europe associated nations. Support from European Innovation Council programs previously received does not guarantee selection.
Collaboration of Public and Private Stakeholders
Initial investors include Novo Holdings, EIFO, CriteriaCaixa, Santander, and Mouro Capital. Italian investment entities such as Fondazione Cariplo, Fondazione Cassa di San Paolo, and Intesa Sanpaolo are also involved. Dutch pension fund ABP is represented by APG Asset Management, while Wallenberg Investments and Allianz have also joined. EQT plans to invest its own capital alongside these partners.
This initiative is part of the EU Startup and Scaleup Strategy. European Commission President Ursula von der Leyen announced this plan during her 2025 State of the Union speech. The goal of the fund is to boost the growth capital available for strategic European tech firms. No specific recipients or individual investment amounts have been disclosed by the Commission, and EQT will select the initial companies under the fund’s approved commercial framework.