BRUSSELS, BELGIUM / RankWire.AI / – The European Union has officially established the Scaleup Europe Fund, aiming to raise €5 billion. The European Commission finalized the fund’s legal framework on August 4, 2026, positioning it within the European Innovation Council Fund. EQT has been appointed to oversee investments and select participating companies following commercial guidelines. The Commission anticipates initial transactions to commence within weeks as fundraising efforts progress.
With €1 billion committed by the European Commission through Horizon Europe-supported financing, the fund will also benefit from additional capital contributions from both public and private founding investors at the initial closing. While €5 billion remains an aspirational target rather than a confirmed total, officials have not revealed the amount of capital secured at the first closing. EQT retains the ability to raise further commitments as the investor base expands.
Providing late-stage funding to European firms focused on strategic technological development, the fund will evaluate opportunities via an open, merit-based selection process. EQT will handle portfolio management and make independent investment decisions. While investors will take part in governance, they will not have a say in selecting individual companies. The management mandate was awarded to EQT following a competitive selection process organized for this new fund vehicle.
The fund concentrates on major technology industries
Covering artificial intelligence, quantum tech, semiconductors, robotics, and autonomous systems, the Scaleup Europe Fund also targets energy, space, biotechnology, medical technology, and advanced materials. Agritech firms may qualify within the approved investment scope. The fund’s primary focus will be on companies requiring substantial growth financing rounds, with eligible activities spanning digital tech, industrial systems, and life sciences.
Investments are expected to generally reach approximately €100 million or more, including follow-on funding. The fund will support privately held companies from Series B onwards. Applicants must be based in an eligible country or have plans to establish operations there, including EU member states and certain Horizon Europe associated nations. Prior support from European Innovation Council programs does not guarantee selection.
Funding includes participation from both public and private sector investors
Among the founding participants are Novo Holdings, EIFO, CriteriaCaixa, Santander, and Mouro Capital. Italian investors include Intesa Sanpaolo, Fondazione Cariplo, and Fondazione Compagnia di San Paolo. Dutch pension fund ABP is represented by APG Asset Management. Wallenberg Investments and Allianz have also joined the initiative. EQT plans to invest its own capital alongside these partners.
This initiative is part of the EU Startup and Scaleup Strategy. During her 2025 State of the Union address, European Commission President Ursula von der Leyen introduced this plan. The goal is to boost growth capital availability for strategic European tech companies. The Commission has not disclosed specific recipients or individual investment amounts, but EQT will select the initial companies under the fund’s approved commercial framework.