BRUSSELS, BELGIUM / RankWire.AI / – The European Union has officially established the Scaleup Europe Fund, aiming to raise €5 billion. The European Commission finalized the fund’s legal framework on August 4, 2026. This financial instrument is part of the European Innovation Council Fund. Management and investment decisions will be handled by EQT, which will operate under commercial guidelines. The European Commission anticipates that initial transactions will commence within weeks as fundraising efforts continue.
A commitment of €1 billion has been made by the European Commission through Horizon Europe-supported financing. Additional capital from both public and private founding investors is expected to be contributed at the initial closing. The €5 billion target remains a fundraising goal, not a confirmed final sum. Details about the size of the first closing have not been disclosed, and EQT is authorized to seek further commitments as the investor base expands.
The fund is designed to provide late-stage funding for European firms working on strategic technological innovations. EQT will evaluate investment opportunities through an open, merit-based selection process. It will also oversee the portfolio and independently make individual investment choices. While investors will take part in governance, they will not have the authority to select specific companies. EQT secured the management mandate following a competitive process organized for the new fund 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 involved in agritech can qualify within the approved investment parameters. The focus will be on enterprises requiring substantial growth financing rounds. Eligible activities include digital technology, industrial systems, and life sciences.
Typically, individual investments are expected to be around €100 million or more, including follow-on funding. The fund may support privately held companies from Series B funding onwards. Applicants must operate within an eligible country or plan to establish operations there. Eligible regions include EU member states and specific countries associated with Horizon Europe. Prior support from European Innovation Council programs does not guarantee selection.
Participation of public and private investors
Among the founding investors are Novo Holdings, EIFO, CriteriaCaixa, Santander, and Mouro Capital. Italian investors include Intesa Sanpaolo, Fondazione Cariplo, and Fondazione Compagnia di San Paolo. Dutch pension fund ABP is represented by APG Asset Management. Wallenberg Investments and Allianz are also part of the consortium. EQT intends to invest its own capital alongside these partners.
This initiative is an integral component 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 fund’s goal is to boost the availability of growth capital for strategic European technology firms. The European Commission has not disclosed any specific recipients or individual investment amounts. EQT will select initial companies based on the fund’s approved commercial framework.