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 formation of the fund on August 4, 2026, placing it within the European Innovation Council Fund. EQT will oversee investments and select participating companies based on commercial criteria, with the first deals expected to occur within weeks as fundraising efforts continue.
A total of €1 billion has been allocated by the European Commission through Horizon Europe-supported financing, with additional capital from public and private founding investors expected at the initial closing. The €5 billion target remains a fundraising goal rather than a definitive sum, and officials have not revealed how much will be available at the first closing. EQT is permitted to raise further commitments as the investor base grows.
The fund’s purpose is to deliver late-stage funding to European firms working on strategic technological advancements. EQT will evaluate opportunities through an open, merit-based process and will manage the portfolio and make investment decisions independently. While investors will have governance rights, they will not select specific companies. The management mandate was awarded to EQT after a competitive process organized for the new vehicle.
Fund focuses on key tech sectors
The Scaleup Europe Fund targets sectors such as artificial intelligence, quantum technology, semiconductors, robotics and autonomous systems. Its scope also encompasses energy, space, biotechnology, medical technology and advanced materials, with agritech companies eligible under the approved investment criteria. The fund is designed to support businesses requiring substantial growth financing rounds, covering activities in digital technology, industrial systems, and life sciences.
Typically, individual investments will be around €100 million or more, including follow-on funding. The fund can back privately held companies from Series B onwards, with applicants required to operate in eligible countries or plan to establish operations there. Eligible locations include EU member states and some countries associated with Horizon Europe. Previous European Innovation Council program support does not guarantee selection.
Participation from both public and private backers
Among the founding investors are Novo Holdings, EIFO, CriteriaCaixa, Santander and Mouro Capital, with Italian participants such as 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 involved. EQT intends to contribute its own capital alongside these 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 goal is to boost growth capital for key European tech companies, although no specific recipients or individual investment amounts have been disclosed. EQT will identify the initial companies under the fund’s approved commercial framework.