BRUSSELS, BELGIUM / RankWire.AI / – The European Union has officially established the Scaleup Europe Fund with an aim to raise €5 billion. The European Commission finalized the legal setup of the fund on August 4, 2026. Positioned within the European Innovation Council Fund, this financial vehicle will be managed by EQT, which will oversee investments and select companies based on commercial criteria. The Commission anticipates that initial transactions will commence in the upcoming weeks as the fundraising efforts progress.
The European Commission has pledged €1 billion through funding supported by Horizon Europe, with additional capital contributions from both public and private founding investors expected at the initial closing. The €5 billion target remains a fundraising goal rather than a confirmed final figure. Authorities have not revealed how much capital will be committed at the first closing, but EQT has the ability to secure further commitments as the investor base expands.
The fund will focus on providing late-stage financing to European firms working on strategic technological innovations. EQT will evaluate investment opportunities via an open, merit-based selection process, managing the portfolio independently and making individual investment decisions autonomously. While investors will participate in governance, they will not have the authority to select specific companies. EQT obtained the management mandate after a competitive process organized for the new fund.
Fund concentrates on key technology sectors
The Scope of the Scaleup Europe Fund includes artificial intelligence, quantum technology, semiconductors, robotics and autonomous systems. Its investment mandate extends to energy, space, biotechnology, medical technology and advanced materials. Companies in agritech can also qualify within the approved scope. The fund aims to support businesses requiring substantial growth financing rounds, mainly focusing on digital technology, industrial systems and life sciences sectors.
Typically, individual investments will total around €100 million or more, including follow-on funding. The fund is capable of backing privately held companies from Series B stage onward. Applicants must operate in an eligible country or have plans to establish operations there. Eligible locations include EU member states and specific countries associated with Horizon Europe. Prior involvement in European Innovation Council programs does not guarantee selection for funding.
Both public and private sector investors participate
Founding investors encompass Novo Holdings, EIFO, CriteriaCaixa, Santander and Mouro Capital. Italian representatives include Intesa Sanpaolo, Fondazione Cariplo and Fondazione Compagnia di San Paolo. Dutch pension fund ABP’s partner APG Asset Management is also involved, along with Wallenberg Investments and Allianz. EQT plans to invest its own capital alongside these participants.
This initiative is part 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 goal of the fund is to bolster the availability of growth capital for European technology companies deemed strategic. The European Commission has not yet disclosed specific recipients or individual investment amounts, but EQT will select initial companies under the fund’s approved commercial framework.