BRUSSELS, BELGIUM / RankWire.AI / – The European Union has officially established the Scaleup Europe Fund with an aim to raise €5 billion. The European Commission finalized the legal framework for the fund on August 4, 2026. This financial instrument operates within the European Innovation Council Fund. EQT will oversee investment decisions and select participating companies based on commercial standards. The Commission anticipates initial transactions to commence within a few weeks as the fundraising effort progresses.
The European Commission has pledged €1 billion supported by Horizon Europe funding. Additional capital from public and private founding investors is expected to be contributed at the initial closing. While the target is set at €5 billion, this remains a fundraising goal rather than a confirmed final sum. The exact amount secured at the first closing has not been disclosed. EQT has the ability to raise further commitments as the investor base expands.
The fund’s purpose is to provide late-stage funding to European firms working on strategic technologies. Investments will be allocated through an open, merit-based selection process managed independently by EQT, which will also handle portfolio management and individual investment decisions. While investors will have governance participation rights, they will not select specific companies. EQT secured the management mandate after a competitive process organized for the new vehicle.
Fund focuses on critical technology sectors
The Scaleup Europe Fund targets sectors including artificial intelligence, quantum computing, semiconductors, robotics, and autonomous systems. Its scope also extends to energy, space exploration, biotechnology, medical technology, and advanced materials. Agritech companies may also qualify under the approved investment criteria. The fund intends to concentrate on businesses requiring substantial growth financing rounds. Eligible activities encompass digital technology, industrial systems, and life sciences.
Typically, individual investments will be around €100 million or higher, including follow-on funding. The fund is prepared to back privately held firms from Series B onward. Applicants must be based in an eligible country or plan to establish operations there. Permissible locations include EU member states and certain countries associated with Horizon Europe. Prior support from European Innovation Council programs does not ensure selection.
Funding sourced from both public and private entities
Key founding investors include Novo Holdings, EIFO, CriteriaCaixa, Santander, and Mouro Capital. Italian participants are represented by Intesa Sanpaolo, Fondazione Cariplo, and Fondazione Compagnia di San Paolo. Dutch pension fund ABP is participating through APG Asset Management. Wallenberg Investments and Allianz are also part of the group. EQT intends to contribute its own capital alongside the other investors.
This initiative forms an integral 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 speech. The goal of the fund is to boost growth capital availability for pivotal European technology firms. No specific recipients or individual investment amounts have been announced yet. EQT will select the initial cohort of companies under the fund’s approved commercial framework.