BRUSSELS, BELGIUM / RankWire.AI / – The European Union has initiated the Scaleup Europe Fund with an aiming to raise €5 billion. The European Commission finalized the legal procedures necessary for the fund on August 4, 2026. It functions within the European Innovation Council Fund and aims to back key technology enterprises. EQT will oversee the portfolio and determine investments based on commercial guidelines. The first deals are anticipated within weeks as the fund manager continues the capital raising process.
The European Commission has pledged €1 billion through Horizon Europe-supported funding. During the initial closing, founding investors from both public and private sectors will contribute additional capital. The €5 billion goal remains a target rather than a confirmed amount already secured. The total value of the initial closing has not been disclosed by authorities. EQT intends to seek further commitments from institutional investors as fundraising advances. The Commission will participate on the same financial terms as other investors.
The fund’s focus will be on European firms that seek substantial late-stage or growth financing rounds. Companies must operate within an EU member state or another qualifying country under Horizon Europe to be eligible. Those planning to establish a presence in those markets might also qualify. EQT will evaluate potential candidates through an open and merit-based process, maintaining control over individual deal selection, investment conditions, and portfolio management. While investors will be involved in governance, they will not influence specific transactions.
The investment scope emphasizes strategic sectors
The Scaleup Europe Fund is open to companies involved in artificial intelligence, quantum computing, semiconductors, and robotics. Its mandate also covers autonomous systems, energy, space, biotechnology, and medical technology. Advanced materials and agricultural tech are included within its scope. The fund anticipates individual investments of approximately €100 million or more, which may include additional financing post-initial investment. Eligible companies can apply from Series B onward.
EQT will identify potential investments and engage directly with companies seeking growth funding. Prior support from European Innovation Council programs does not guarantee selection, but existing EIC-backed firms that meet criteria can still be considered. The fund targets larger financing rounds than those currently available through EIC instruments, which provide up to €30 million per company via EIC STEP funding. EQT will provide more details on application procedures and engagement as its investment activities unfold.
Initial investors support the capital collection
The founding investor group features Novo Holdings, EIFO, CriteriaCaixa, Santander, and Mouro Capital. Novo Holdings has previously announced a €500 million commitment to the fund. Italian participants include Intesa Sanpaolo, Fondazione Cariplo, and Fondazione Compagnia di San Paolo. APG Asset Management joins on behalf of Dutch pension fund ABP. Wallenberg Investments and Allianz are also part of this group. EQT plans to contribute its own capital alongside these investors.
The Scaleup Europe Fund is part of the EU Startup and Scaleup Strategy. European Commission President Ursula von der Leyen announced the initiative during her 2025 State of the Union address. The program aims to improve access to substantial growth investments for European strategic technology companies. The European Commission has not disclosed any specific recipients or individual deal amounts. EQT will select the initial companies based on the fund’s commercial framework and approved investment guidelines.