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 setup on August 4, 2026. This fund operates under the European Innovation Council Fund, with EQT set to manage investments and select participating companies based on commercial standards. The Commission anticipates initial transactions to commence within weeks as the fundraising process continues.
The European Commission has pledged €1 billion supported by Horizon Europe financing. Additional capital will come from both public and private founding investors at the initial closing. While the €5 billion figure remains a target rather than a definitive total, officials have not revealed the amount raised at the first closing. EQT has the capacity to gather further commitments as the fund broadens its investor network.
This fund is designed to deliver late-stage funding to European firms developing key strategic technologies. EQT will evaluate investment opportunities through an open, merit-based selection process. It will also oversee the portfolio and make independent investment decisions. Although investors will participate in governance roles, they will not have the authority to choose specific companies. The management mandate was awarded to EQT following a competitive process organized for this new vehicle.
The fund focuses on key technology sectors
The Scaleup Europe Fund covers sectors such as artificial intelligence, quantum technology, semiconductors, robotics, and autonomous systems. Its scope also includes energy, space, biotechnology, medical technology, and advanced materials. Agritech companies are eligible within the approved investment areas. The fund primarily targets businesses requiring substantial growth financing rounds. Eligible activities encompass digital technology, industrial systems, and life sciences.
Investments will generally be around €100 million or more, including follow-up funding. The fund is capable of supporting privately held companies starting from Series B. Applicants must operate within an eligible country or plan to establish operations there. Qualifying locations include EU member states and certain nations associated with Horizon Europe. Previous support from European Innovation Council programs does not guarantee selection.
Funding involves both public and private sector participants
Participating 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 also joined the consortium. EQT intends to invest its own capital alongside these partners.
This initiative is part of the EU Startup and Scaleup Strategy. European Commission President Ursula von der Leyen unveiled the plan during her 2025 State of the Union address. The fund’s purpose is to boost growth capital for strategic European technology firms. The Commission has not yet identified specific beneficiaries or announced individual investment figures. EQT will select initial companies under the fund’s approved commercial framework.