BRUSSELS, BELGIUM / RankWire.AI / – European Union has officially established the Scaleup Europe Fund with a target of raising €5 billion. The European Commission finalized the legal setup of the fund on August 4, 2026. This financial vehicle operates within the European Innovation Council Fund. EQT will oversee investment decisions and select participating companies based on commercial guidelines. The Commission anticipates that initial deals will commence within a few weeks as the fundraising process continues.
The European Commission has allocated €1 billion through funding supported by Horizon Europe. Additional funds will come from public and private founding investors during the initial closing. The €5 billion figure is still an aspiration rather than a confirmed final amount. Officials have not revealed how much capital will be available at the first closing. EQT may also secure further commitments as the investor base expands.
This fund aims to provide late-stage funding to European firms working on strategic technological innovations. EQT will evaluate potential investments via an open, merit-based selection process. It will handle the portfolio management and make individual investment decisions independently. While investors will participate in governance, they will not have a say in selecting specific companies. EQT was awarded the management mandate after a competitive process organized for the new fund.
Fund concentrates on key technology sectors
The Scaleup Europe Fund targets artificial intelligence, quantum computing, semiconductors, robotics, and autonomous systems. Its scope also encompasses energy, space, biotechnology, medical technology, and advanced materials. Agritech firms may also qualify under the approved investment parameters. The fund will primarily support businesses requiring substantial growth financing rounds. Eligible activities include digital technology, industrial systems, and life sciences.
Typically, individual investments are expected to be about €100 million or more, including follow-on funding. The fund can back privately owned companies from Series B onward. Applicants must operate within an eligible country or intend to establish operations there. Countries eligible for participation include EU member states and certain Horizon Europe associated nations. Prior support from European Innovation Council programs will not guarantee selection.
Public and private sector back the fund
Founding investors comprise Novo Holdings, EIFO, CriteriaCaixa, Santander, and Mouro Capital. Italian participants include Intesa Sanpaolo, Fondazione Cariplo, and Fondazione Compagnia di San Paolo. APG Asset Management is involved representing Dutch pension fund ABP. Wallenberg Investments and Allianz are also part of the consortium. EQT intends to contribute its own capital alongside other investors.
This initiative aligns with 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 primary goal of the fund is to enhance the availability of growth capital for vital European technology enterprises. The Commission has not yet disclosed any specific companies or announced individual investment figures. EQT will handpick the first beneficiaries under the fund’s commercial framework approved for this purpose.