BRUSSELS, BELGIUM / RankWire.AI / – The European Union has officially launched the Scaleup Europe Fund with a target of raising €5 billion. The European Commission finalized the legal setup of the fund on August 4, 2026. The fund operates under the European Innovation Council Fund framework. EQT will oversee investments and select companies based on commercial guidelines. The Commission anticipates initial transactions to commence within weeks as the fundraising process continues.
The European Commission has pledged €1 billion through funding supported by Horizon Europe. Additional capital will come from public and private founding investors at the initial closing. The €5 billion goal is a fundraising target rather than a finalized amount. Details about the size of the first closing have not been disclosed. EQT has the option to raise further commitments as the investor base expands.
The fund intends to offer late-stage financing to European firms working on strategic technologies. EQT will evaluate opportunities through an open, merit-based selection process. It will also manage the portfolio and make individual investment decisions independently. Investors will take part in governance but will not select specific 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 covers artificial intelligence, quantum technology, semiconductors, robotics and autonomous systems. Its scope also includes energy, space, biotechnology, medical technology and advanced materials. Agritech companies may qualify under the approved investment framework. The fund aims to support businesses that require substantial growth financing rounds. Eligible activities include digital technology, industrial systems, and life sciences.
Typically, individual investments will be around €100 million or more, including follow-on funding. The fund is equipped to back privately owned companies starting from Series B. Applicants must operate within an eligible country or plan to establish operations there. Eligible locations encompass EU member states and certain countries associated with Horizon Europe. Prior support from European Innovation Council programs does not guarantee selection.
Public and private investors contribute to the fund
Founding investors include Novo Holdings, EIFO, CriteriaCaixa, Santander, and Mouro Capital. Italian investors are represented by Intesa Sanpaolo, Fondazione Cariplo, and Fondazione Compagnia di San Paolo. Dutch pension fund ABP is represented by APG Asset Management. Wallenberg Investments and Allianz also participate. EQT plans to invest its own capital alongside the other contributors.
This initiative aligns with 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 seeks to boost growth capital availability for key European technology companies. The Commission has not specified any recipients or disclosed individual investment amounts. EQT will select the initial companies under the fund’s authorized commercial framework.