BRUSSELS, BELGIUM / RankWire.AI / – The European Union has officially established 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. It is housed within the European Innovation Council Fund. EQT will oversee investments and select companies based on commercial criteria. The Commission anticipates initial transactions to start within a few weeks as fundraising efforts are ongoing.
The European Commission has pledged €1 billion through funding supported by Horizon Europe, while additional capital will come from public and private founding investors at the initial closing. The €5 billion figure is a fundraising goal rather than a confirmed final amount. Authorities have not disclosed how much capital will be included in the first closing. EQT has the capacity to secure further commitments as the investor base broadens.
The fund is designed to offer late-stage funding to European firms developing critical technologies. EQT will evaluate opportunities via an open, merit-based selection process. It will also independently manage the portfolio and make individual investment decisions. Although investors will participate in governance, they will not have a say in selecting specific companies. EQT was awarded the management mandate following a competitive selection process organized for the new fund.
Fund focuses on leading technology sectors
The Scaleup Europe Fund targets artificial intelligence, quantum computing, semiconductors, robotics, and autonomous systems. Its scope also includes energy, space, biotechnology, medical technology, and advanced materials. Agritech firms may qualify under the approved investment criteria. The fund will prioritize companies requiring substantial growth financing rounds. Eligible activities encompass digital tech, industrial systems, and life sciences.
Typically, individual investments will be around €100 million or higher, including follow-on funding. The fund is prepared to support privately owned companies from Series B onward. Applicants must operate in an eligible country or plan to establish operations there. Eligible regions include EU member states and certain associated countries with Horizon Europe. Prior support from European Innovation Council programs does not guarantee selection.
Public and private sector investors participate in the fund
Founding investors include Novo Holdings, EIFO, CriteriaCaixa, Santander, and Mouro Capital. Italian investors such as Intesa Sanpaolo, Fondazione Cariplo, and Fondazione Compagnia di San Paolo also participate. Dutch pension fund ABP is represented by APG Asset Management. Wallenberg Investments and Allianz have joined the group as well. 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 introduced this plan during her 2025 State of the Union address. The fund’s goal is to boost growth capital for strategic European technology enterprises. The Commission has not revealed any specific recipients or disclosed individual investment amounts. EQT will choose the initial companies in accordance with the fund’s approved commercial framework.