BRUSSELS, BELGIUM / RankWire.AI / – The European Union has initiated the Scaleup Europe Fund, aiming to raise €5 billion. The European Commission finalized the legal framework for the fund on August 4, 2026. Operating under the European Innovation Council Fund, it will support key technology companies. EQT will oversee the investment portfolio and make decisions based on commercial criteria. The first deals are anticipated within weeks, as the manager continues to gather capital.
The European Commission has committed €1 billion through Horizon Europe funding. Additional capital will be contributed during the initial closing by founding public and private investors. The €5 billion goal is not yet fully secured. Authorities have not disclosed the total value of the first closing. EQT plans to attract more institutional investors as fundraising advances. The Commission will invest on the same financial terms as other participants.
The fund targets European firms seeking significant late-stage or growth financing rounds. Companies must operate within an EU member state or another qualifying Horizon Europe country. Businesses planning to expand into these markets may also qualify. EQT will evaluate candidates through an open, merit-based process. It will decide on individual deals, investment terms, and portfolio management. Investors will participate in governance but will not influence specific transactions.
Investment scope emphasizes strategic industries
The Scaleup Europe Fund will consider companies in artificial intelligence, quantum technology, semiconductors, and robotics. It will also include autonomous systems, energy, space, biotechnology, and medical technology. Advanced materials and agricultural tech are within its scope. The fund expects individual investments to be around €100 million or more. This amount may include additional funding after an initial deal. Eligible companies can start from Series B onward.
EQT will identify potential investments and engage directly with companies seeking growth capital. Past support from European Innovation Council programs does not guarantee selection. Existing EIC-backed firms can still qualify if they meet the criteria. The fund aims at larger funding rounds than current EIC schemes. EIC STEP funding currently provides up to €30 million per company. EQT will share more details on applications and engagement as investments develop.
Initial investors back the fundraising effort
Initial investors include Novo Holdings, EIFO, CriteriaCaixa, Santander, and Mouro Capital. Novo Holdings has already committed €500 million to the fund. Italian partners include Intesa Sanpaolo, Fondazione Cariplo, and Fondazione Compagnia di San Paolo. APG Asset Management joins on behalf of Dutch pension fund ABP. Wallenberg Investments and Allianz are also part of the group. EQT intends to invest its own capital alongside these backers.
The Scaleup Europe Fund is part of the EU Startup and Scaleup Strategy. European Commission President Ursula von der Leyen announced the initiative during her 2025 State of the Union address. The program aims to boost access to large-scale growth investments for European tech companies. The Commission has not disclosed any deal specifics or recipients. EQT will select the initial companies based on the fund’s commercial guidelines and approved investment rules.