BRUSSELS, BELGIUM / RankWire.AI / – In Brussels, on August 4, the European Union announced the creation of the Scaleup Europe Fund, targeting €5 billion to support key technology firms. The European Commission finalized the legal framework for the fund on the specified date, integrating it within the European Innovation Council Fund. Managed by EQT, the fund will now have the autonomy to invest on market terms. The Commission anticipates initial investments to occur within the next few weeks, with ongoing fundraising efforts aimed at reaching the €5 billion goal.
The EU has pledged €1 billion, with Horizon Europe contributing to the EU’s part. Both public and private sector investors will contribute capital during the first closing phase. Following this, EQT intends to secure additional commitments from a wider range of investors. The €5 billion figure is a target for fundraising, not an exact final fund size, and EQT has indicated that the total amount might fall above or below that threshold. The initial closing amount has not been publicly disclosed. The European Commission is participating on the same financial footing as other investors.
Designed to support European scaleups in the technology sector that require significant late-stage funding, the fund will operate across EU member states and eligible associated countries. Investment decisions will be made through a merit-based selection process, following approved guidelines. Governance will involve the European Commission and other investors, but they will not influence individual deals, leaving EQT responsible for selecting and managing the portfolio. EQT secured the mandate through a competitive, open process.
Structure and Investment Regulations
Target sectors include artificial intelligence, quantum technology, semiconductors, robotics, and autonomous systems. The mandate also encompasses energy, space, biotechnology, medical technology, advanced materials, and agritech. The fund intends to make investments of approximately €100 million or more, including follow-on funding, and can support private companies from Series B stage onward. Firms must operate within, or plan to establish a presence in, an eligible country. The investment scope covers digital systems, industrial systems, and life sciences.
EQT will identify potential investments and handle engagement with companies. Selection will adhere to an open, transparent, and merit-based approach. Past involvement in European Innovation Council programs will not automatically favor companies. Nonetheless, existing EIC portfolio companies may serve as sources for potential deals. The new fund is positioned above smaller EIC financing tools in terms of investment size, with current EIC STEP support providing up to €30 million per company. Further details about EQT’s engagement plans will be shared as the fund advances into active investment phases.
Initial Investors and Policy Context
Initial contributors include Novo Holdings, EIFO, CriteriaCaixa, Santander, and Mouro Capital. Italian backers comprise Fondazione Compagnia di San Paolo, Intesa Sanpaolo, and Fondazione Cariplo. APG Asset Management joins on behalf of Dutch pension fund ABP, alongside Wallenberg Investments and Allianz, which are also part of the founding group. EQT has confirmed it will contribute its own capital to the fund, with additional investors expected to participate after the first closing. The investor group features a mix of pension funds, foundations, banks, and investment firms.
The Scaleup Europe Fund is a key element of the EU Startup and Scaleup Strategy. European Commission President Ursula von der Leyen announced the initiative in her 2025 State of the Union address. The goal is to bolster growth capital for European technology leaders with high potential. According to the Commission, many rapidly growing companies have sought larger funding rounds outside Europe. The Commission has not yet disclosed specific companies or investment amounts but has indicated that EQT will select initial recipients following the fund’s commercial guidelines.