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 fund’s legal framework on August 4, 2026. This fund operates within the European Innovation Council Fund. EQT will be responsible for managing investments and selecting companies based on commercial criteria. The Commission anticipates that initial deals could start within weeks as fundraising efforts are ongoing.
The European Commission has allocated €1 billion through financing supported by Horizon Europe. Additional capital will come from public and private founding investors at the initial closing. The €5 billion figure is a goal for fundraising rather than a confirmed total. Authorities have not revealed how much will be raised at the first closing. EQT has the capacity to secure further commitments as the investor base grows.
This fund aims to provide late-stage funding to European enterprises working on strategic technological developments. EQT will evaluate opportunities through an open, merit-based process. It will also oversee the portfolio and make independent investment decisions. While investors will have governance roles, they will not select individual companies. EQT earned the management mandate after a competitive process organized for the new fund.
Fund focuses on leading sectors within technology
The Scaleup Europe Fund targets artificial intelligence, quantum computing, semiconductors, robotics, and autonomous systems. It also encompasses energy, space exploration, biotechnology, medical technology, and advanced materials. Agritech firms may qualify under the approved investment scope. The fund will concentrate on companies requiring substantial growth financing rounds. Eligible activities include digital technology, industrial systems, and life sciences.
Investments are typically around €100 million or more, including follow-on funding. The fund can support privately owned companies from Series B onwards. Applicants must operate within an eligible country or plan to establish operations there. Eligible locations include EU member states and certain Horizon Europe associated countries. Support previously received from European Innovation Council programs does not guarantee selection.
Both public and private sector investors participate in the fund
Participants include Novo Holdings, EIFO, CriteriaCaixa, Santander, and Mouro Capital. Italian investors such as Intesa Sanpaolo, Fondazione Cariplo, and Fondazione Compagnia di San Paolo are also involved. Dutch pension fund ABP is represented by APG Asset Management. Wallenberg Investments and Allianz have joined 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 the plan during her 2025 State of the Union address. The goal is to boost growth capital for key European technology companies. The Commission has not specified any recipients or announced individual investment amounts. EQT will choose the initial companies under the fund’s approved commercial framework.