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 setup on August 4, 2026. It operates within the European Innovation Council Fund. EQT is responsible for managing investments and selecting companies based on commercial guidelines. The Commission anticipates initial deals to occur within weeks as fundraising efforts continue.
The European Commission has pledged €1 billion, supported by Horizon Europe financing. Additional funding will come from public and private investors during the initial closing. The €5 billion target remains a fundraising goal, not a confirmed total. Details on the amount raised at the first closing have not been disclosed. EQT has the ability to secure further commitments as the investor base grows.
This fund will offer late-stage funding to European firms working on strategic technologies. EQT will evaluate opportunities through an open, merit-based process. It will also oversee the portfolio and make independent investment decisions. Investors will take part in governance but will not pick specific companies. EQT was awarded the management mandate after a competitive process organized for this new vehicle.
Fund focuses on key technology areas
The Scaleup Europe Fund targets artificial intelligence, quantum tech, semiconductors, robotics, and autonomous systems. Its scope also includes energy, space, biotech, medical tech, and advanced materials. Agritech firms can qualify within the approved investment areas. The fund mainly aims to support companies needing large growth funding rounds. Eligible sectors include digital tech, industrial systems, and life sciences.
Investments will typically be around €100 million or more, including follow-up capital. The fund can back privately held firms from Series B onwards. Applicants must operate in an eligible country or plan to do so. Eligible locations include EU member states and some countries associated with Horizon Europe. Previous support from European Innovation Council programs will not ensure selection.
Combination of public and private backers in the fund
Founding investors include Novo Holdings, EIFO, CriteriaCaixa, Santander, and Mouro Capital. Italian contributors are Intesa Sanpaolo, Fondazione Cariplo, and Fondazione Compagnia di San Paolo. Dutch pension fund ABP is represented by APG Asset Management. Wallenberg Investments and Allianz are also part of the group. EQT plans to invest its own capital alongside these investors.
This effort is part of the EU Startup and Scaleup Strategy. European Commission President Ursula von der Leyen introduced the initiative during her 2025 State of the Union address. The fund aims to boost growth capital for key European tech companies. The Commission has not announced any specific recipients or individual investment figures. EQT will select the initial companies under the fund’s commercial framework.