BRUSSELS, BELGIUM / RankWire.AI / – As part of its broader strategy to bolster innovation and growth, the European Union has established the Scaleup Europe Fund, aiming to raise €5 billion in total. The European Commission finalized the legal procedures necessary for launching the fund on August 4, 2026. Functioning within the framework of the European Innovation Council Fund, this initiative will channel resources into key technology firms across Europe. EQT has been appointed to oversee the portfolio and will select investments based on commercial criteria. The first deals are anticipated to be completed within weeks, as the fund continues to gather capital.
The European Commission has committed €1 billion through support provided by Horizon Europe. Initial funding will also include contributions from founding public and private investors at the first closing. It’s important to note that the €5 billion figure is a target, not a confirmation of secured funds. The total value of the initial closing has not yet been publicly disclosed. EQT will actively seek additional commitments from institutional backers as the fundraising effort progresses. The Commission has agreed to invest under the same financial conditions as other investors.
Targeting European enterprises in need of substantial late-stage or growth financing, the fund will prioritize companies based in EU member states or other eligible Horizon Europe nations. Businesses planning to establish operations in these regions may also qualify. EQT will evaluate candidates through an open and merit-based process, with the final decision-making authority resting with them regarding individual deals, investment terms, and portfolio oversight. While investors will participate in governance, they will not have control over specific transactions.
The fund’s investment focus includes strategic sectors
The Scaleup Europe Fund is set to consider investments in fields such as artificial intelligence, quantum computing, semiconductors, and robotics. Its scope also encompasses autonomous systems, energy, space, biotechnology, and medical devices. The mandate extends to advanced materials and agricultural tech. Typically, individual investments are expected to be around €100 million or more, with the possibility of additional funding after initial investment. Companies eligible to apply can be at Series B or later stages.
EQT will identify potential portfolio companies and engage directly with firms seeking growth capital. Past support from European Innovation Council programs does not automatically guarantee inclusion. Existing EIC-backed entities can still apply if they meet the set criteria. The new fund aims to support larger financing rounds compared to current EIC instruments, with EIC STEP funding reaching up to €30 million per company. EQT will provide further details on application procedures and engagement as the investment process unfolds.
Initial investors back the capital collection effort
Among the founding investors are Novo Holdings, EIFO, CriteriaCaixa, Santander, and Mouro Capital. Novo Holdings previously announced a commitment of €500 million to the fund. Italian participants include Intesa Sanpaolo, Fondazione Cariplo, and Fondazione Compagnia di San Paolo. On behalf of Dutch pension fund ABP, APG Asset Management is joining the group, alongside Wallenberg Investments and Allianz. EQT intends to contribute its own capital in addition to these initial commitments.
The Scaleup Europe Fund is part of the broader EU Startup and Scaleup Strategy. European Commission President Ursula von der Leyen introduced this initiative during her 2025 State of the Union speech. The goal is to increase access to substantial growth funding for European technology firms with strategic importance. The Commission has not yet disclosed any specific recipients or individual deal sizes. EQT will select the initial portfolio companies based on the fund’s commercial framework and the approved investment guidelines.