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 framework for the fund on August 4, 2026. Positioned within the European Innovation Council Fund, EQT will oversee investments and select participating companies according to commercial standards. The Commission anticipates initial transactions could commence within weeks as fundraising efforts progress.
The European Commission has allocated €1 billion, supported by Horizon Europe financing. Additional capital will come from public and private founding investors at the initial closing. The €5 billion figure remains a fundraising goal rather than a confirmed total. Officials have not disclosed the amount of capital expected at the first closing, but EQT can secure further commitments as the investor base expands.
The fund aims to deliver late-stage funding to European firms advancing strategic technologies. EQT will evaluate opportunities through a transparent, merit-based process. It will also independently manage the portfolio and make individual investment decisions. Investors will have governance roles but will not select specific companies. EQT was awarded the management mandate following a competitive process for the new vehicle.
Fund concentrates on key tech sectors
The Scaleup Europe Fund targets artificial intelligence, quantum tech, semiconductors, robotics, and autonomous systems. Its scope also encompasses energy, space, biotech, medical tech, and advanced materials. Agritech businesses may qualify under the approved investment areas. The fund will prioritize companies requiring substantial growth financing rounds, including digital technology, industrial systems, and life sciences.
Typical investments are expected to be around €100 million or more, including follow-on funding. Support is available for privately owned companies from Series B onwards. Applicants must operate within an eligible country or plan to establish operations there, including EU member states and certain Horizon Europe associate countries. Past support from European Innovation Council programs does not guarantee selection.
Multiple investors participate in the initiative
Key founding investors 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 is represented by APG Asset Management. Wallenberg Investments and Allianz have joined as well. EQT intends to invest its own funds alongside these partners.
This initiative is part of 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 is to boost growth capital for strategic European tech companies. The Commission has not announced specific recipients or individual investment amounts. EQT will select initial companies based on the fund’s approved commercial framework.