BRUSSELS, BELGIUM / RankWire.AI / – In a move announced recently, the European Union has officially established the Scaleup Europe Fund with a target of raising €5 billion. The European Commission finalized the legal framework for this fund on August 4, 2026. It is part of the European Innovation Council Fund. EQT will oversee investment management and select participating companies according to commercial guidelines. The Commission anticipates that initial deals will start within a few weeks as the fundraising efforts proceed.
Earlier this year, the European Commission committed €1 billion through Horizon Europe-supported financing. Additional funding from both public and private investors will be contributed during the initial closing. The €5 billion goal remains a target for fundraising, not a final, confirmed sum. Details regarding the size of the initial closing have not been disclosed. EQT retains the ability to secure further commitments as the investor base grows.
This fund aims to provide late-stage capital to European firms involved in developing strategic technologies. Investment opportunities will be evaluated through an open and merit-based process. EQT will also manage the portfolio and make independent investment decisions. While investors will have governance roles, they will not select specific companies. After a competitive process, EQT received the management mandate for this new vehicle.
Fund will focus on key technological industries
The Scaleup Europe Fund’s scope includes artificial intelligence, quantum computing, semiconductors, robotics, and autonomous systems. Its mandate also encompasses energy, space, biotech, medical technology, and advanced materials. Companies in agritech may also qualify under the designated investment scope. The fund’s priority will be on businesses requiring large growth financing rounds. Eligible activities cover digital technologies, industrial systems, and life sciences sectors.
Typically, investments will be around €100 million or more, including follow-on funding. The fund intends to support private companies from Series B onwards. Applicants must operate in an eligible country or plan to establish operations there. Eligible countries include EU member states and certain Horizon Europe associated nations. Prior support from European Innovation Council programs does not guarantee a spot in the fund.
Both public and private sector investors participate
Among the founding participants are Novo Holdings, EIFO, CriteriaCaixa, Santander, and Mouro Capital. Italian investors include Intesa Sanpaolo, Fondazione Cariplo, and Fondazione Compagnia di San Paolo. APG Asset Management is representing Dutch pension fund ABP. Wallenberg Investments and Allianz are also part of the group. EQT plans to contribute its own capital alongside these investors.
This effort is a key component of the EU Startup and Scaleup Strategy. During her 2025 State of the Union address, European Commission President Ursula von der Leyen introduced this initiative. The fund’s goal is to boost growth capital for strategically important European tech companies. The Commission has not yet announced specific recipients or individual investment amounts. EQT will choose the initial companies under the fund’s approved commercial framework.