BRUSSELS, BELGIUM / RankWire.AI / – European Union has officially established the Scaleup Europe Fund, aiming to raise €5 billion. The European Commission finalized the fund’s legal setup on August 4, 2026. It operates within the European Innovation Council Fund. EQT will oversee investments and select companies based on commercial criteria. The Commission expects the first deals to start within weeks as fundraising efforts continue.
The European Commission has pledged €1 billion through funding supported by Horizon Europe. Additional capital will come from public and private founding investors at the initial closing. The €5 billion target is an aspirational fundraising goal, not a confirmed total. Officials have not revealed the amount of capital expected at the first closing. EQT is permitted to raise more commitments as the fund grows its investor base.
The fund’s purpose is to provide late-stage funding to European firms working on strategic technologies. EQT will evaluate opportunities via an open, merit-based selection process. It will also manage the portfolio and make individual investment choices independently. While investors will have governance rights, they will not select specific companies. EQT earned the management mandate after a competitive process organized for the new vehicle.
Fund aims to target key sectors in technology
The Scaleup Europe Fund focuses on artificial intelligence, quantum technology, semiconductors, robotics and autonomous systems. Its scope also includes energy, space, biotechnology, medical technology and advanced materials. Agritech firms can qualify within the approved investment areas. The fund primarily targets companies requiring substantial growth financing rounds. Eligible activities span digital technology, industrial systems, and life sciences.
Investments are expected to generally reach around €100 million or more, including follow-on funding. The fund can support privately held companies starting from Series B. Applicants must operate in an eligible country or plan to establish operations there. Eligible locations include EU member states and certain countries associated with Horizon Europe. Prior support from European Innovation Council programs does not guarantee selection.
Private and public investors participate in the initiative
Participants include Novo Holdings, EIFO, CriteriaCaixa, Santander and Mouro Capital. Italian investors are represented by Intesa Sanpaolo, Fondazione Cariplo and Fondazione Compagnia di San Paolo. APG Asset Management is involved for Dutch pension fund ABP. Wallenberg Investments and Allianz are also part of the group. EQT plans to invest its own capital alongside other investors.
This initiative is part of the EU Startup and Scaleup Strategy. European Commission President Ursula von der Leyen unveiled the plan during her 2025 State of the Union address. The fund’s goal is to boost growth capital availability for key European tech companies. The Commission has not yet disclosed any specific recipients or announced individual investment amounts. EQT will choose the initial companies under the fund’s approved commercial framework.