BRUSSELS, BELGIUM / RankWire.AI / – Amid efforts to bolster innovation and technological sovereignty, the European Union has officially established the Scaleup Europe Fund, aiming to raise €5 billion. The European Commission finalized the fund’s legal framework on August 4, 2026, integrating it within the European Innovation Council Fund. Managed by EQT, the fund will oversee investment decisions and company selection based on commercial criteria. The Commission anticipates the first deals to be made in the coming weeks as fundraising progresses.
A total of €1 billion has been committed by the European Commission through Horizon Europe-supported financing, with additional funds to be contributed by public and private sector investors during the initial closing. The €5 billion target remains an aspirational goal rather than a guaranteed final sum. Authorities have not disclosed the amount secured at the first closing, but EQT has the flexibility to attract further commitments as the fund grows its investor base.
The main purpose of the fund is to provide late-stage funding to European firms working on strategic technological advancements. EQT will evaluate investment opportunities via an open, merit-based process and will retain independence in managing the portfolio and making individual investment choices. While investors will have a say in governance, they will not be involved in selecting specific companies. EQT was awarded the management mandate after a competitive selection process for the new fund.
Fund focuses on key tech sectors
The Scaleup Europe Fund targets industries such as artificial intelligence, quantum tech, semiconductors, robotics, and autonomous systems. Its scope also encompasses energy, space, biotechnology, medical tech, and advanced materials. Agritech ventures may qualify under the approved investment scope. The fund is designed to back businesses requiring substantial growth funding rounds, with activity spanning digital technology, industrial systems, and life sciences.
Typically, individual investments will be around €100 million or more, including follow-up funding. The fund aims to support privately held companies from Series B onwards. Applicants must operate within an eligible country or plan to establish operations there. Eligible regions include EU member states and select countries associated with Horizon Europe. Prior support from European Innovation Council programs does not ensure selection for this fund.
Collaborative effort among public and private backers
Participants in the initial phase include Novo Holdings, EIFO, CriteriaCaixa, Santander, and Mouro Capital. Italian investors such as Intesa Sanpaolo, Fondazione Cariplo, and Fondazione Compagnia di San Paolo are also involved. Dutch pension fund ABP’s representative, APG Asset Management, has joined, alongside Wallenberg Investments and Allianz. EQT intends to contribute its own capital in addition to those of other investors.
This initiative is part of the broader EU Startup and Scaleup Strategy. European Commission President Ursula von der Leyen unveiled the plan during her 2025 State of the Union address. The fund’s goal is to enhance growth capital availability for strategic European tech companies. No specific recipients or individual investment amounts have been publicly disclosed; EQT will select the initial companies under the fund’s approved commercial framework.