BRUSSELS, BELGIUM / RankWire.AI / – The European Union has initiated the Scaleup Europe Fund, aiming to raise €5 billion. The European Commission finalized the necessary legal procedures for the fund on August 4, 2026. Operating within the European Innovation Council Fund framework, the fund’s goal is to back key technology-driven companies. EQT will oversee the portfolio and select investments based on commercial standards. The first deals are anticipated in the coming weeks as the manager continues its fundraising efforts.
A €1 billion contribution from the European Commission, supported by Horizon Europe, has already been committed. During the initial closing, public and private founding investors are expected to add their capital. The €5 billion figure remains an aspirational target and does not indicate that the full amount has been secured. The total value of the initial closing has not yet been disclosed. As the fundraising advances, EQT will pursue additional commitments from institutional stakeholders. The European Commission will invest under the same financial terms as other investors.
Targeted investments will focus on European firms in need of substantial late-stage or growth financing rounds. To qualify, companies must operate within an EU member state or a recognized Horizon Europe country. Firms planning to establish operations in these regions may also qualify. EQT will evaluate candidates through a transparent, merit-based process. The firm will retain control over individual deal selection, investment conditions, and portfolio management. While investors will participate in governance, they will not influence specific transaction decisions.
Investment focus includes key strategic sectors
The Scaleup Europe Fund is set to invest in companies involved in artificial intelligence, quantum computing, semiconductors, and robotics. Its mandate extends to autonomous systems, energy, space exploration, biotechnology, and medical innovations. The scope also covers advanced materials and agricultural tech. The fund anticipates individual investments of approximately €100 million or more, which may include subsequent funding rounds after an initial deal. Eligible businesses can participate from Series B funding stage onward.
EQT will identify potential investments and engage directly with companies seeking growth capital. Having previously benefited from European Innovation Council programs does not guarantee a spot in the pipeline. Existing EIC-backed firms can still qualify if they meet the criteria. The fund aims to support larger financing rounds than current EIC instruments, which provide up to €30 million per company through EIC STEP funding. Further details on application procedures and engagement will be shared as the investment process progresses.
Initial investors bolster fundraising efforts
The founding investor lineup includes Novo Holdings, EIFO, CriteriaCaixa, Santander, and Mouro Capital. Novo Holdings has previously announced a €500 million commitment to the fund. Italian contributors such as Intesa Sanpaolo, Fondazione Cariplo, and Fondazione Compagnia di San Paolo are also participating. Dutch pension fund ABP is represented by APG Asset Management. Wallenberg Investments and Allianz are part of the initial group as well. EQT intends to contribute its own capital alongside these investors.
The Scaleup Europe Fund is an element of the EU Startup and Scaleup Strategy. European Commission President Ursula von der Leyen announced this initiative during her 2025 State of the Union address. Its purpose is to enhance access to substantial growth investments for European tech companies with strategic importance. The Commission has not disclosed specific recipient companies or deal sizes. EQT will select initial portfolio companies following the fund’s commercial and investment guidelines.