BRUSSELS, BELGIUM / RankWire.AI / – The European Union has initiated the Scaleup Europe Fund, aiming to raise €5 billion. The European Commission finalized the legal framework for this investment vehicle on August 4, 2026. Operating within the European Innovation Council Fund, the new fund is designed to back key technology enterprises. EQT will oversee the investment portfolio and make decisions under commercial guidelines, with initial deals expected to occur within weeks as the fund continues its capital raising efforts.
A €1 billion contribution from the European Commission, supported by Horizon Europe, forms part of the initial funding. Additional capital will be provided by founding public and private investors during the first closing. The €5 billion goal remains a target; it does not reflect the total amount already secured. The total size of the first closing has not been disclosed. EQT plans to gather more commitments from institutional investors as the fundraising progresses. The European Commission will participate under the same financial terms as other investors.
The fund targets European companies in need of substantial late-stage or growth financing rounds. Eligible businesses must operate within an EU member state or another qualifying Horizon Europe country. Companies planning to establish operations in those markets may also qualify. Selection will be based on an open, merit-based process conducted by EQT. The firm will retain control over individual deals, investment conditions, and portfolio management. Investors will participate in governance but will not influence specific transaction decisions.
Mandate emphasizes strategic sectors
The Scaleup Europe Fund is open to companies involved in artificial intelligence, quantum tech, semiconductors, and robotics. Its scope also encompasses autonomous systems, energy, space, biotechnology, and medical tech. The fund’s focus includes advanced materials and agricultural innovation. Investments are expected to be approximately €100 million or more per company, which can include further financing after an initial deal. Companies qualifying for the process can enter from Series B onwards.
EQT will actively identify potential investments and engage directly with companies seeking growth capital. Past support from European Innovation Council programs does not automatically guarantee selection. Existing EIC-supported firms can still participate if they meet the criteria. The vehicle is aiming for larger funding rounds than current EIC instruments, such as the up to €30 million available through EIC STEP funding. Further details on application processes and engagement will be shared as the investment activity unfolds.
Initial investors bolster the fundraising effort
The founding investor group includes Novo Holdings, EIFO, CriteriaCaixa, Santander, and Mouro Capital. Novo Holdings has previously announced a commitment of €500 million to the fund. Italian investors include Intesa Sanpaolo, Fondazione Cariplo, and Fondazione Compagnia di San Paolo. On behalf of Dutch pension fund ABP, APG Asset Management is also involved. Wallenberg Investments and Allianz complete the group. EQT intends to invest its own capital alongside these backers.
The Scaleup Europe Fund is a component of the EU Startup and Scaleup Strategy. European Commission President Ursula von der Leyen announced this initiative during her 2025 State of the Union address. The program aims to enhance access to substantial growth investments for European strategic tech companies. No specific recipients or individual deal sizes have been disclosed by the Commission. EQT will select initial companies based on the fund’s commercial framework and approved investment criteria.