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 structure on August 4, 2026. This fund operates within the European Innovation Council Fund framework. EQT will oversee investments and select participating companies according to commercial guidelines. The European Commission anticipates initial transactions to commence within weeks as the fundraising process is ongoing.
With €1 billion committed by the European Commission via Horizon Europe financing, additional capital from both public and private founding investors will be raised at the initial closing. The €5 billion target remains a goal rather than a definitive final amount. Authorities have not disclosed the specific capital amount at the first closing. EQT is authorized to secure further commitments as the investor base expands.
This fund aims to deliver late-stage funding to European firms working on strategic technologies. EQT will evaluate potential investments through an open, merit-based selection process. It will also handle portfolio management and make independent investment choices. While investors will participate in governance, they will not select individual companies. EQT was awarded the management mandate following a competitive process organized for the new 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. Agritech firms can also qualify within the approved investment scope. The fund’s primary focus is on companies requiring substantial growth financing rounds. Eligible activities include digital technology, industrial systems, and life sciences.
Typically, investments will be approximately €100 million or more, including follow-on funding. The fund may back privately held companies starting from Series B. Applicants must operate in an eligible country or plan to establish operations there. Eligible regions include EU member states and certain Horizon Europe associated countries. Prior support from European Innovation Council programs does not guarantee selection.
Funding sourced from public and private sector investors
Initial 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’s representative, APG Asset Management, is participating along with Wallenberg Investments and Allianz. EQT intends to contribute its own capital alongside these investors.
This initiative is part of the EU Startup and Scaleup Strategy. European Commission President Ursula von der Leyen introduced the plan during her 2025 State of the Union address. The fund’s goal is to boost the availability of growth capital for strategic European technology companies. The European Commission has not disclosed any specific recipients or individual investment amounts. EQT will choose the initial companies under the fund’s approved commercial framework.