BRUSSELS, BELGIUM / RankWire.AI / – The European Union has officially established the Scaleup Europe Fund, aiming to raise €5 billion. The legal framework for the fund was finalized by the European Commission on August 4, 2026, situating it within the European Innovation Council Fund. EQT will oversee investment decisions and select participating companies according to commercial guidelines. The European Commission anticipates that initial transactions will commence in the coming weeks as the fundraising process continues.
A commitment of €1 billion has been made by the European Commission, supported through Horizon Europe financing. Additional funding from public and private founding investors will be secured at the fund’s initial closing. The €5 billion target remains a goal for fundraising rather than a guaranteed final sum. Authorities have not disclosed how much capital will be raised at the first closing. EQT has the ability to attract further commitments as the investor base grows.
This fund will focus on providing late-stage financing to European firms advancing strategic technologies. EQT will evaluate prospects through an open, merit-based selection process. It will also independently manage the investment portfolio and make individual decisions. While investors will participate in governance, they will not have a say in selecting specific companies. EQT obtained the management mandate following a competitive process organized for the new vehicle.
Fund emphasizes key technology sectors
The Scope of the Scaleup Europe Fund includes artificial intelligence, quantum computing, semiconductors, robotics, and autonomous systems. Its mandate also covers energy, space, biotechnology, medical innovation, and advanced materials. Companies in agritech are also eligible within the approved investment scope. Priority will be given to firms requiring significant growth financing rounds. Eligible activities encompass digital technologies, industrial systems, and life sciences.
Typically, individual investments are expected to be around €100 million or more, including follow-on funding. The fund can support privately held companies starting from Series B onwards. Applicants must operate in an eligible country or plan to establish operations there. Countries eligible include EU member states and certain nations associated with Horizon Europe. Prior support from European Innovation Council initiatives does not guarantee project selection.
Public and private sector backers participate in the fund
Initial contributors 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 pension manager, APG Asset Management, is participating on behalf of its client, ABP. Wallenberg Investments and Allianz have also joined the coalition. EQT intends to invest its own capital alongside these partners.
This initiative aligns with 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 goal of the fund is to boost growth capital availability for key European technology companies. The European Commission has not specified any specific recipients or announced individual investment amounts. EQT will identify the initial companies to receive funding within the fund’s established commercial framework.