BRUSSELS, BELGIUM / RankWire.AI / – The European Union has introduced the Scaleup Europe Fund with a goal of raising €5 billion. On August 4, 2026, the European Commission finalized the necessary legal procedures for this initiative. Managed within the European Innovation Council Fund, the new vehicle aims to back key technology-focused companies. EQT will oversee the investment portfolio and select ventures based on commercial criteria. The first deals are anticipated to occur within weeks as the fund continues to gather capital.
A commitment of €1 billion has been made by the European Commission through Horizon Europe-backed funding. Additional investments from founding public and private stakeholders will be made during the fund’s initial closing. The €5 billion target remains an aspirational figure and does not indicate confirmed funds. The overall value of the first closing has not yet been disclosed by officials. EQT plans to seek further commitments from institutional investors as the fundraising effort advances. The Commission’s investments will be on the same financial terms as those of other participants.
The focus of the fund will be on European enterprises seeking substantial late-stage or growth financing rounds. Companies eligible for investment must operate within an EU member state or other Horizon Europe qualifying country. Firms planning to establish a presence in these markets may also be considered. EQT will evaluate potential investments through an open, merit-based process. It will retain control over individual deal selection, investment terms, and overall portfolio management. While investors will participate in governance, they will not influence specific transaction decisions.
Investment scope includes strategic sectors
The Scaleup Europe Fund is targeting companies involved in artificial intelligence, quantum technology, semiconductors, and robotics. Its mandate also encompasses autonomous systems, energy, space, biotechnology, and medical technology. The scope extends to advanced materials and agricultural technology. Typically, individual investments are expected to be approximately €100 million or more, including potential additional financing post-initial transaction. Eligible companies may qualify from Series B funding onward.
EQT will identify potential opportunities and engage directly with companies seeking growth capital. Past support from European Innovation Council programs does not guarantee selection, although existing EIC-backed businesses that meet the criteria remain eligible to enter the pipeline. The new fund targets larger funding rounds than those currently available through EIC instruments. Presently, EIC STEP funding provides up to €30 million per company. Details about further application procedures and engagement will be provided as the investment activity unfolds.
Initial investors bolster the fundraising process
Key founding investors include Novo Holdings, EIFO, CriteriaCaixa, Santander, and Mouro Capital. Novo Holdings has previously committed €500 million to the fund. Italian contributors such as Intesa Sanpaolo, Fondazione Cariplo, and Fondazione Compagnia di San Paolo are also involved. On behalf of Dutch pension fund ABP, APG Asset Management is participating. Wallenberg Investments and Allianz are also part of the investor group. EQT intends to contribute its own capital alongside these partners.
The Scaleup Europe Fund is part of the EU Startup and Scaleup Strategy. European Commission President Ursula von der Leyen unveiled this initiative during her 2025 State of the Union address. The program aims to facilitate greater access to substantial growth investments for strategic technology companies across Europe. No recipients or individual deal values have been publicly disclosed by the Commission. EQT will select initial companies based on the fund’s commercial framework and approved investment policies.