BRUSSELS, BELGIUM / RankWire.AI / – The European Union has initiated the Scaleup Europe Fund with a target of raising €5 billion. The European Commission finalized the necessary legal procedures for this fund on August 4, 2026. Operating within the European Innovation Council Fund, the new vehicle aims to back key technology-driven companies. EQT will oversee the portfolio and make investment decisions based on commercial guidelines, with initial deals expected within weeks as fundraising efforts continue.
The European Commission has pledged €1 billion through Horizon Europe-supported funding, while public and private founding investors will contribute during the initial closing. The €5 billion goal remains a target, not a confirmed secured amount, and the total value of the first closing has not been disclosed. As fundraising progresses, EQT will pursue additional commitments from institutional investors, and the Commission will participate on the same financial terms as other investors.
Targeted at European enterprises needing substantial late-stage or growth funding, the fund will support companies based in EU member states or other qualifying Horizon Europe countries. Businesses planning expansion into these markets may also qualify. EQT will evaluate candidates through an open, merit-based process and will control deal selection, investment terms, and portfolio management. Investors will participate in governance but will not influence specific transaction decisions.
Focus on strategic sectors within the investment scope
The Scaleup Europe Fund aims to invest in companies involved in artificial intelligence, quantum computing, semiconductors, and robotics. Its mandate also includes autonomous systems, energy, space, biotech, and medical tech. The scope covers advanced materials and agri-tech as well. Investments are expected to be about €100 million or more per deal, which can include additional funding post-initial investment. Companies can apply from Series B onward.
EQT will identify potential investments and engage directly with companies seeking growth capital. Previous support from European Innovation Council programs does not guarantee selection, but existing EIC-backed firms can qualify if they meet the criteria. The new fund targets larger financing rounds than current EIC instruments, with EIC STEP funding currently capped at €30 million per company. Further details about application processes and engagement will be provided as activity unfolds.
Initial investors bolster the fundraising effort
The founding investor group includes Novo Holdings, EIFO, CriteriaCaixa, Santander, and Mouro Capital. Novo Holdings has already announced a €500 million commitment. Italian participants such as Intesa Sanpaolo, Fondazione Cariplo, and Fondazione Compagnia di San Paolo are involved, alongside APG Asset Management representing Dutch pension fund ABP. Wallenberg Investments and Allianz are also part of the group. EQT intends to contribute its own capital alongside these investors.
The Scaleup Europe Fund is a component of the EU Startup and Scaleup Strategy. European Commission President Ursula von der Leyen announced this initiative during her 2025 State of the Union speech. It aims to improve access to large-scale growth investments for European strategic tech firms. The Commission has not disclosed any specific recipients or deal values, and EQT will select the first companies based on the fund’s commercial criteria and approved investment guidelines.
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