BRUSSELS, BELGIUM / RankWire.AI / – The European Union has introduced the Scaleup Europe Fund, aiming to raise €5 billion in capital to support high-potential technology companies across the continent. On August 4, 2026, the European Commission finalized the legal procedures necessary for establishing this fund, which will operate under the umbrella of the European Innovation Council Fund. The initiative is designed to back key technology enterprises, with EQT appointed to manage the portfolio and select investments based on commercial principles. The first investment deals are anticipated to take place within a matter of weeks as the fundraising process continues and additional capital commitments are secured.
The European Commission has already pledged €1 billion through funds supported by Horizon Europe, and initial investors—both public and private—are expected to contribute additional capital during the first closing phase. It is important to note that the €5 billion figure represents a target rather than an amount already secured; the total value of the initial closing has not been disclosed publicly. As the fundraising effort advances, EQT will seek further commitments from institutional backers, with the European Commission agreeing to invest on the same terms as other participants.
The fund’s primary focus will be on European firms requiring significant late-stage or growth funding rounds, with eligibility criteria including companies operating within an EU member state or other Horizon Europe participant countries. Firms planning to establish operations in these regions may also qualify. EQT will evaluate potential investments through an open, merit-based process, holding control over deal selection, investment conditions, and overall portfolio management. While investors will participate in governance, they will not influence specific transaction decisions directly.
Investment mandate encompasses key strategic sectors
The Scaleup Europe Fund aims to back companies involved in artificial intelligence, quantum computing, semiconductors, and robotics. Its scope also covers autonomous systems, energy, space exploration, biotechnology, and medical technology. The fund is interested in advanced materials and agricultural technologies as well. Typically, individual investments are expected to be approximately €100 million or more, which may include additional funding rounds following the initial investment. Companies can enter the process starting from Series B funding onward, provided they meet the criteria.
EQT will be responsible for sourcing potential opportunities and engaging directly with growth-stage companies seeking capital. Support received from European Innovation Council programs previously does not guarantee selection, but existing EIC-backed companies that fulfill the criteria remain eligible to participate. The new vehicle aims to facilitate larger financing rounds than those currently available through EIC instruments, with the EIC STEP fund providing up to €30 million per company. Further details about application procedures and engagement will be shared as the investment activities unfold.
Initial investors back capital raising efforts
Among the founding investors are Novo Holdings, EIFO, CriteriaCaixa, Santander, and Mouro Capital, with Novo Holdings having already announced a commitment of €500 million to the fund. Italian investors include Intesa Sanpaolo, Fondazione Cariplo, and Fondazione Compagnia di San Paolo. On behalf of Dutch pension fund ABP, APG Asset Management will participate, alongside Wallenberg Investments and Allianz. EQT also plans to contribute its own capital in conjunction with these investors.
The Scaleup Europe Fund is a key component of the EU Startup and Scaleup Strategy, launched by European Commission President Ursula von der Leyen during her 2025 State of the Union address. The initiative aims to enhance access to substantial growth investments for European technology leaders. The European Commission has not disclosed specific recipient companies or individual deal sizes, and EQT will determine its initial investments based on the fund’s commercial framework and established investment guidelines.