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 the fund on August 4, 2026, situating it within the framework of the European Innovation Council Fund. Managed by EQT, the fund will oversee investments and select companies following commercial guidelines, with the European Commission anticipating that initial transactions could start in the coming weeks as fundraising efforts continue.
The European Commission has committed €1 billion to the fund through financing supported by Horizon Europe, while additional capital will be provided by public and private founding investors at the initial closing. It is important to note that the €5 billion figure is a fundraising goal, not yet a confirmed final amount, and officials have yet to disclose the capital involved in the first closing. EQT retains the ability to secure further commitments as the investor base expands.
Designed to offer late-stage funding to European firms advancing critical technologies, the fund will evaluate investment opportunities through an open, merit-based process, maintaining independent management of the portfolio and individual investment decisions. While investors will have a role in governance, they will not be involved in selecting specific companies. EQT was awarded the management mandate following a competitive selection process organized specifically for this new vehicle.
The fund concentrates on key technology sectors
Covering artificial intelligence, quantum technology, semiconductors, robotics, and autonomous systems, the Scaleup Europe Fund’s scope also extends to energy, space, biotechnology, medical technology, and advanced materials. Additionally, agritech companies are eligible under the approved investment parameters. The fund aims to support businesses requiring substantial growth financing rounds, with eligible activities spanning digital technology, industrial systems, and life sciences.
Typically, individual investments will amount to around €100 million or more, including follow-on funding, supporting privately held firms from Series B onwards. Applicants must operate within an eligible country or plan to establish operations there, with qualifying locations including EU member states and certain Horizon Europe-associated countries. Previous support from European Innovation Council programs does not guarantee selection for this new initiative.
Funding sourced from both public and private sectors
Participating founding investors include Novo Holdings, EIFO, CriteriaCaixa, Santander, and Mouro Capital, with Italian representation from Intesa Sanpaolo, Fondazione Cariplo, and Fondazione Compagnia di San Paolo. Dutch pension fund ABP is represented by APG Asset Management, while Wallenberg Investments and Allianz are also part of the group. EQT intends to invest its own capital alongside these partners, further reinforcing the fund’s backing.
This initiative aligns with the EU Startup and Scaleup Strategy, which was introduced by European Commission President Ursula von der Leyen during her 2025 State of the Union address. The primary goal is to bolster growth capital availability for strategic European technology firms. At this stage, the European Commission has not announced specific recipients or disclosed individual investment amounts, as EQT will determine the initial companies to receive funding under the fund’s established commercial framework.