BRUSSELS, BELGIUM / RankWire.AI / – European Union has officially established the Scaleup Europe Fund, aiming to raise €5 billion. The European Commission finalized the legal formation of this fund on August 4, 2026, situating it within the European Innovation Council Fund. EQT has been appointed to oversee investments and select companies based on commercial standards. The Commission anticipates initial deals to occur within the coming weeks as fundraising efforts persist.
A total of €1 billion is committed by the European Commission via Horizon Europe-supported financing, with additional funding from public and private founding investors expected at the initial closing. The €5 billion figure remains a target rather than a fixed sum, and officials have not disclosed the size of the first closing. As the fund’s investor network grows, EQT will be able to secure further commitments.
The fund is designed to provide late-stage funding to European enterprises working on strategic technological innovations. Investment opportunities will be evaluated through an open and merit-based process, with EQT independently managing the portfolio and making individual investment decisions. While investors will have governance roles, they will not influence the selection of specific companies. EQT was awarded the management mandate following a competitive bidding process for the new vehicle.
Fund’s Focus on Key Tech Sectors
The Scaleup Europe Fund encompasses artificial intelligence, quantum computing, semiconductors, robotics, and autonomous systems. Its scope also extends to energy, space, biotechnology, medical tech, and advanced materials. Agritech firms can qualify within this framework as well. The fund prioritizes businesses requiring substantial growth funding rounds, with eligible activities spanning digital tech, industrial systems, and life sciences.
Typical investments are expected to be around €100 million or more, including follow-on funding. Support is available for private companies from Series B onwards. Applicants must be based in an eligible country or intend to establish operations there, including EU member states and certain Horizon Europe associated nations. Having previously received support from European Innovation Council programs does not guarantee selection.
Participation of Public and Private Capital
Leading investors 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 joined by APG Asset Management. Wallenberg Investments and Allianz are also part of the consortium. EQT intends to contribute its own capital alongside these investors.
This initiative is a key component of the EU Startup and Scaleup Strategy. European Commission President Ursula von der Leyen announced the plan during her 2025 State of the Union speech. The fund’s goal is to boost growth capital available to strategic European tech firms. The Commission has yet to specify any recipients or individual investment amounts. EQT will identify the initial companies to be supported under the fund’s approved commercial framework.