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 legal steps for the fund on August 4, 2026, which will operate under the European Innovation Council Fund to support key technology companies. EQT will oversee the investment portfolio and select deals according to commercial standards, with initial transactions expected within weeks as fundraising continues.
The European Commission has allocated €1 billion, supported by Horizon Europe funding, with founding public and private investors providing additional capital during the initial closing. The €5 billion figure remains a goal rather than an amount already secured, and the total for the first closing has not been disclosed. As the fundraising progresses, EQT will seek further commitments from institutional investors. The Commission will invest under the same terms as other participants.
The fund aims to back European firms that require substantial late-stage or growth financing rounds. To qualify, companies must operate within an EU member state or another eligible Horizon Europe country; businesses planning to establish operations there may also qualify. EQT will evaluate candidates through an open, merit-based process, maintaining control over individual deal selection, investment terms, and portfolio management. Investors will participate in governance but will not direct specific transactions.
Investment scope includes key sectors
The Scaleup Europe Fund will target companies involved in artificial intelligence, quantum computing, semiconductors, and robotics. Its mandate also covers autonomous systems, energy, space, biotechnology, and medical technology. Additionally, advanced materials and agricultural tech are within its scope. The fund anticipates individual investments of approximately €100 million or more, which may include subsequent financing rounds following an initial deal. Companies can qualify from Series B onward.
EQT will identify potential investments and hold direct discussions with companies seeking growth capital. Past support from European Innovation Council programs does not guarantee selection, but existing EIC-backed firms can still qualify if they meet the criteria. This new vehicle aims to support larger financing rounds than current EIC instruments, with EIC STEP funding currently reaching up to €30 million per company. EQT will share additional details about applications and engagement as the investment process unfolds.
Initial investors bolster funding efforts
The founding investor group includes Novo Holdings, EIFO, CriteriaCaixa, Santander, and Mouro Capital. Novo Holdings previously announced a commitment of €500 million to the fund. Italian investors such as Intesa Sanpaolo, Fondazione Cariplo, and Fondazione Compagnia di San Paolo are also participating. APG Asset Management joins on behalf of Dutch pension fund ABP, with Wallenberg Investments and Allianz forming part of the group. EQT will 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 launched the initiative during her 2025 State of the Union address. The goal is to boost access to large growth investments for Europe’s strategic technology companies. The Commission has not disclosed any recipients or individual deal values. EQT will select initial companies based on the fund’s commercial framework and established investment rules.