BRUSSELS, BELGIUM / RankWire.AI / – The European Union has officially established the Scaleup Europe Fund with a target of raising €5 billion. The European Commission finalized the legal formation of the fund on August 4, 2026. This initiative is housed within the European Innovation Council Fund. EQT has been appointed to oversee investments and select qualifying companies according to commercial guidelines. The Commission anticipates that the first transactions will commence within weeks as fundraising efforts continue.
Funding support from Horizon Europe includes €1 billion committed by the European Commission. Additional capital will be contributed by public and private founding investors at the initial closing. The €5 billion goal remains a target for fundraising rather than a confirmed final sum. Officials have not revealed how much capital will be available at the first closing. EQT has the ability to secure further commitments as the investor base expands.
The fund aims to provide late-stage financing to European firms operating in strategic technological fields. Opportunities will be evaluated through an open, merit-based process, with EQT independently managing the portfolio and making individual investment decisions. While investors will participate in governance, they will not select specific companies. EQT was awarded the management mandate after a competitive process organized for the new vehicle.
Fund focuses on key technology sectors
The Scaleup Europe Fund targets artificial intelligence, quantum technology, semiconductors, robotics and autonomous systems. Its scope also encompasses energy, space, biotechnology, medical technology and advanced materials. Companies in agritech are eligible as well within the approved investment scope. The fund intends to concentrate on companies requiring substantial growth financing rounds. Eligible activities include digital technology, industrial systems and life sciences.
Typical investments are expected to be around €100 million or more, including follow-up capital. The fund may support privately held companies starting from Series B funding. Applicants must operate within an eligible country or plan to establish operations there. Eligible regions include EU member states and certain countries associated with Horizon Europe. Past support from European Innovation Council programs will not guarantee a successful application.
Funding from both public and private sectors
Initial participants 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 is participating through APG Asset Management. Wallenberg Investments and Allianz have also become part of the group. EQT intends to invest its own capital alongside the other stakeholders.
This initiative is part of the EU Startup and Scaleup Strategy. European Commission President Ursula von der Leyen introduced the plan during her 2025 State of the Union address. The fund’s goal is to enhance growth capital availability for strategic European technology firms. No specific recipients or individual investment amounts have been disclosed. EQT will select the initial companies under the fund’s approved commercial framework.