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 framework on August 4, 2026. This financial vehicle operates within the European Innovation Council Fund. EQT will oversee investments and select eligible companies following commercial guidelines. The European Commission anticipates that initial transactions will commence in the coming weeks as the fundraising efforts continue.
The European Commission has allocated €1 billion through financing backed by Horizon Europe. Additional funding will come from public and private founding investors at the initial closing. The targeted €5 billion figure remains a fundraising goal rather than a definitive total. Authorities have not disclosed the amount of capital expected at the first closing. EQT is authorized to gather further commitments as the investor base grows.
The fund’s purpose is to deliver late-stage funding 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 choices independently. While investors will take part in governance, they will not directly select specific companies. EQT was awarded the management mandate after a competitive process organized for the new fund.
Fund focuses on key technology fields
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 enterprises can qualify within the approved investment criteria. The fund is primarily interested in companies requiring substantial growth financing rounds. Eligible activities include digital technology, industrial systems, and life sciences.
Typically, individual investments will be around €100 million or higher, including follow-on funding. The fund intends to support privately owned companies starting from Series B. Applicants must be based in an eligible country or plan to establish operations there. Permissible locations include EU member states and certain countries associated with Horizon Europe. Prior support from European Innovation Council programs does not guarantee selection.
Investors from both public and private sectors participate
Initial investors include Novo Holdings, EIFO, CriteriaCaixa, Santander, and Mouro Capital. Italian participants are represented by Intesa Sanpaolo, Fondazione Cariplo, and Fondazione Compagnia di San Paolo. Dutch pension fund ABP is involved through APG Asset Management. Wallenberg Investments and Allianz are also part of the group. EQT plans to contribute its own capital alongside other investors.
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 address. The fund’s goal is to boost the availability of growth capital for key European tech firms. The European Commission has not announced specific recipients or individual investment amounts. EQT will identify the first companies to benefit from the fund’s approved commercial framework.