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 this fund on August 4, 2026. It is integrated within the European Innovation Council Fund. EQT has been appointed to oversee investments and select companies based on commercial guidelines. The European Commission anticipates the first deals will take place within weeks as fundraising efforts persist.
A commitment of €1 billion has been made by the European Commission through financing supported by Horizon Europe. Additional funding from public and private founding investors will be secured at the initial closing. The target of €5 billion is a fundraising goal, not a confirmed final amount, and officials have not specified the size of the first closing. EQT has the ability to attract further commitments as the fund broadens its investor base.
This fund will focus on providing late-stage financing to European firms developing key technologies. The selection process will be transparent and merit-based, with EQT managing the portfolio and making individual investment decisions independently. While investors will participate in governance, they will not have a say in selecting specific companies. EQT earned the management mandate following a competitive process organized for this new vehicle.
Fund concentrates on vital technology sectors
The Scope of the Scaleup Europe Fund encompasses artificial intelligence, quantum tech, semiconductors, robotics, and autonomous systems. It also extends to energy, space, biotech, medtech, and advanced materials. Agritech firms may qualify under the approved investment criteria. The fund targets businesses requiring substantial growth financing rounds, covering 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 starting from Series B. Applicants must be based in or plan to establish operations in an eligible country, which includes EU member states and certain Horizon Europe associated nations. Prior support from European Innovation Council programs does not guarantee selection.
Funding involves both public and private backers
Initial 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. Dutch pension fund ABP’s group is represented by APG Asset Management. Wallenberg Investments and Allianz are also part of the group. EQT intends to invest its own capital alongside these partners.
This initiative is part of the EU Startup and Scaleup Strategy. European Commission President Ursula von der Leyen announced this plan during her 2025 State of the Union address. The goal of the fund is to boost available growth capital for key European tech companies. The Commission has not disclosed specific recipients or individual investment amounts. EQT will identify the initial companies under the fund’s approved commercial framework.