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 framework for the fund on August 4, 2026. It operates under the umbrella of the European Innovation Council Fund. EQT will oversee the investment process and select companies in accordance with commercial guidelines. The Commission anticipates that initial transactions could commence within a few weeks, as fundraising efforts continue.
A commitment of €1 billion has been made by the European Commission, supported by Horizon Europe funding. Additional capital from both public and private founding investors will be contributed during the initial closing. The €5 billion target remains a goal rather than a confirmed final figure, with no disclosure on the amount to be raised during the first closing. EQT has the flexibility to secure further commitments as the fund’s investor base grows.
Designed to provide late-stage funding for European companies advancing strategic technologies, the fund will evaluate opportunities through an open, merit-based selection process. EQT will also be responsible for managing the portfolio and making independent investment decisions. While investors will participate in governance roles, they will not have the authority to select specific companies. EQT was awarded the management mandate following a competitive selection process organized for the new vehicle.
Fund focuses on key technology sectors
The Scope of the Scaleup Europe Fund includes artificial intelligence, quantum computing, semiconductors, robotics and autonomous systems. Its mandate also extends to energy, space, biotechnology, medical technology, and advanced materials. Companies in agritech can also qualify within the approved investment areas. The fund will mainly target firms requiring substantial growth financing rounds. Eligible activities encompass digital technologies, industrial systems, and life sciences sectors.
Typically, investments are expected to be around €100 million or more, including follow-on funding. The fund is capable of supporting privately held companies from Series B funding onwards. Applicants must either operate within an eligible country or plan to establish operations there. Eligible locations include EU member states and certain Horizon Europe associated nations. Prior support from European Innovation Council programs does not guarantee selection.
Combination of public and private sector backers
Initial participants include Novo Holdings, EIFO, CriteriaCaixa, Santander and Mouro Capital. Italian investors such as Intesa Sanpaolo, Fondazione Cariplo, and Fondazione Compagnia di San Paolo are also involved. APG Asset Management is contributing on behalf of Dutch pension fund ABP. Additionally, Wallenberg Investments and Allianz have joined the consortium. EQT intends to invest its own capital alongside other contributors.
This initiative is part of the EU Startup and Scaleup Strategy. European Commission President Ursula von der Leyen unveiled the plan during her 2025 State of the Union address. The goal is to bolster growth capital available for significant European technology firms. The Commission has not revealed specific recipients or disclosed individual investment amounts. EQT will identify the initial companies to benefit from the fund under its approved commercial framework.