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, which operates within the European Innovation Council Fund. EQT will oversee investment decisions and select participating companies based on commercial criteria. The European Commission anticipates that initial transactions will take place within a few weeks as the fundraising effort progresses.
A total of €1 billion has already been committed by the European Commission through Horizon Europe financing, with additional capital to be contributed by both public and private founding investors at the initial closing. While the €5 billion target remains a goal rather than a confirmed total, officials have not revealed the amount secured during the first closing. EQT retains the flexibility to raise further commitments as the fund broadens its investor base.
The primary purpose of the fund is to provide late-stage funding to European firms developing key technologies. EQT will evaluate opportunities through an open, merit-based selection process and will independently manage the portfolio and make individual investment decisions. While investors will participate in governance, they will not have the authority to select specific companies. EQT was awarded the management mandate after a competitive process organized for this new vehicle.
Fund emphasizes leading technology sectors
The Scaleup Europe Fund targets sectors such as artificial intelligence, quantum technology, semiconductors, robotics, and autonomous systems. Its scope also includes energy, space, biotechnology, medical technology, and advanced materials. Agritech companies may qualify within the approved investment areas. The fund aims to support businesses requiring substantial growth financing rounds. Eligible activities encompass digital technology, industrial systems, and life sciences.
Investments are typically expected to be around €100 million or more, including follow-on funding. The fund can back privately held companies from Series B onward. Applicants must operate in an eligible country or plan to establish operations there. Acceptable locations include EU member states and certain countries associated with Horizon Europe. Prior support from European Innovation Council initiatives does not guarantee selection.
Combination of public and private backing for the fund
Key founding investors comprise 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 are also participants. EQT intends to invest its own capital alongside these partners.
This initiative aligns with the EU Startup and Scaleup Strategy. European Commission President Ursula von der Leyen unveiled this plan during her 2025 State of the Union address. The fund’s goal is to increase the availability of growth capital for strategic European technology firms. The European Commission has not disclosed specific recipients or individual investment amounts. EQT will identify initial companies under the fund’s commercial framework.