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, it aims to back key technology companies. EQT will oversee the investment portfolio and select deals based on commercial principles. The initial transactions are anticipated within a few weeks as the manager continues to attract capital.
The European Commission has pledged €1 billion through Horizon Europe-backed funding. During the first closing, public and private founding investors will contribute additional capital. The €5 billion target remains an aspiration and does not imply that all funds are secured. The total amount raised at the initial closing has not yet been disclosed by officials. EQT is actively seeking further commitments from institutional investors as fundraising advances. The Commission will participate under the same financial conditions as other investors.
The fund’s focus is on European firms in need of significant late-stage or growth financing rounds. Eligible enterprises must operate within an EU member state or a qualifying Horizon Europe country. Companies planning to establish operations in those territories may also qualify. EQT will evaluate potential investments through an open, merit-based process. It will retain control over individual deal selection, investment terms, and portfolio management. Investors will be involved in governance, but they will not direct specific transactions.
Investment focus spans key technological fields
The Scaleup Europe Fund will target companies working in artificial intelligence, quantum technology, semiconductors, and robotics. It also covers autonomous systems, energy, space, biotechnology, and medical technology. The scope includes advanced materials and agricultural technology as well. Typical investments are expected to be around €100 million or more, which may include additional funding after an initial deal. Companies can qualify for the process starting from Series B funding rounds onward.
EQT will identify potential targets and engage directly with companies seeking growth capital. Past support from European Innovation Council programs does not guarantee selection. Existing EIC-supported companies remain eligible if they meet the criteria. This new vehicle aims to facilitate larger financing rounds than existing EIC instruments, which currently offer up to €30 million in support per company via EIC STEP funding. EQT will provide updates on application procedures and investment activities as they unfold.
Initial investors bolster the fundraising process
Among the founding investors are Novo Holdings, EIFO, CriteriaCaixa, Santander, and Mouro Capital. Novo Holdings has already announced a €500 million commitment. Italian investors include Intesa Sanpaolo, Fondazione Cariplo, and Fondazione Compagnia di San Paolo. APG Asset Management joins on behalf of Dutch pension fund ABP. Wallenberg Investments and Allianz are also part of the group. EQT intends to contribute its own capital alongside these investors.
The Scaleup Europe Fund is a component 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 goal of the program is to enhance access to substantial growth investments for European strategic technology firms. The Commission has not revealed specific recipients or disclosed individual deal sizes. EQT will select initial companies based on the fund’s commercial guidelines and approved investment policies.