BRUSSELS, BELGIUM / RankWire.AI / – The European Union has established the Scaleup Europe Fund, targeting €5 billion for strategic technology companies. The European Commission completed the fund’s final legal steps on August 4. The action placed the vehicle inside the European Innovation Council Fund. EQT now manages it and can make investments independently on market terms. The Commission expects the first investments within the coming weeks. Further fundraising will continue toward the €5 billion target.
The Commission has committed €1 billion, with Horizon Europe backing the EU contribution. Public and private founding investors will provide capital at the first closing. EQT will then seek additional commitments from a broader investor base. The €5 billion figure remains a fundraising target, not a confirmed final fund size. EQT says the actual total may end above or below that level. Officials have not disclosed the first closing amount. The Commission participates on the same financial terms as other investors.
The fund targets European technology scaleups that need large late-stage financing rounds. It will operate across EU member states and eligible associated countries. EQT will choose investments through a merit-based process under approved investment guidelines. The Commission and other investors will participate in the fund’s governance. They will not direct individual deals, leaving EQT responsible for commercial selection and portfolio decisions. The firm won the mandate through an open competitive process.
Capital structure and investment rules
Eligible sectors span artificial intelligence, quantum technology, semiconductors, robotics and autonomous systems. The mandate also covers energy, space, biotechnology, medical technology, advanced materials and agritech. The fund plans investments of about €100 million or more, including follow-on financing. It can back privately owned companies from Series B onward. Companies must operate in, or plan to locate within, an eligible country. The investment scope covers digital systems, industrial systems and life sciences.
EQT will source potential investments and manage engagement with companies. Selection will follow an open, transparent and merit-based process. Past support from European Innovation Council programs will not provide automatic preference. The existing EIC portfolio may still serve as a source of potential deals. The new fund sits above smaller EIC financing tools in intended investment size. Current EIC STEP support reaches up to €30 million per company. EQT will publish further engagement information as the fund moves into investment activity.
Founding investors and policy framework
Founding investors include Novo Holdings, EIFO, CriteriaCaixa, Santander and Mouro Capital. Italian participants include Fondazione Compagnia di San Paolo, Intesa Sanpaolo and Fondazione Cariplo. APG Asset Management is joining on behalf of Dutch pension fund ABP. Wallenberg Investments and Allianz also belong to the founding group. EQT has said it will commit its own capital to the fund. Additional investors may join after the first closing. The group combines pension funds, foundations, banks and investment organizations.
The Scaleup Europe Fund forms part of the EU Startup and Scaleup Strategy. European Commission President Ursula von der Leyen announced it in her 2025 State of the Union address. The EU designed the initiative to increase growth capital for strategic European technology businesses. Many high-growth companies have sought larger financing rounds outside Europe, according to the Commission. The Commission has not yet named any recipient companies or disclosed specific investment amounts. EQT will select the first recipients under the fund’s commercial guidelines.