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, situating it within the European Innovation Council Fund. EQT will oversee investments and select companies according to commercial guidelines, with the expectation that the initial transactions will commence within weeks as the fundraising process progresses.
The European Commission has pledged €1 billion through Horizon Europe-supported financing, while public and private founding investors will contribute additional capital at the initial closing. The €5 billion target remains a fundraising goal rather than a confirmed final amount, with no disclosure on the capital amount at the first closing. EQT has the flexibility to secure further commitments as the investor base grows.
This fund will offer late-stage funding to European enterprises working on strategic technologies, with EQT evaluating opportunities via an open, merit-based selection process. It will also handle the portfolio and make independent investment decisions. Although investors will have a role in governance, they will not choose specific companies. EQT received the management mandate following a competitive process for the new vehicle.
Fund focuses on key technology sectors
The Scaleup Europe Fund encompasses artificial intelligence, quantum tech, semiconductors, robotics, and autonomous systems. Its scope also includes energy, space, biotech, medical tech, and advanced materials, with agritech companies qualifying under the approved investment parameters. The focus will be on firms requiring substantial growth financing rounds, spanning digital tech, industrial systems, and life sciences.
Typical investments are expected to be around €100 million or more, including follow-on funding, supporting privately held companies from Series B onward. Applicants must operate in an eligible country or plan to establish a presence there, with eligible locations including EU member states and certain Horizon Europe associated countries. Prior support from European Innovation Council programs does not guarantee selection.
Public and private contributors participate in the fund
Participants include Novo Holdings, EIFO, CriteriaCaixa, Santander, and Mouro Capital, with Italian investors represented by Intesa Sanpaolo, Fondazione Cariplo, and Fondazione Compagnia di San Paolo. Dutch pension fund ABP’s APG Asset Management is involved, alongside Wallenberg Investments and Allianz. EQT intends to invest its own capital alongside these partners.
This initiative is part of the EU Startup and Scaleup Strategy, introduced by European Commission President Ursula von der Leyen during her 2025 State of the Union address. The fund’s goal is to boost growth capital for strategic European tech companies, though no specific recipients or individual investment figures have been disclosed. EQT will select the initial companies under the fund’s approved commercial framework.