BRUSSELS, BELGIUM / RankWire.AI / – The European Union has officially established the Scaleup Europe Fund, aiming to raise €5 billion to back high-potential companies. The European Commission finalized the legal setup of the fund on August 4, 2026, situating it within the European Innovation Council Fund. EQT will oversee investment decisions and select target companies based on commercial criteria. The Commission anticipates initial transactions to commence in the coming weeks, with fundraising efforts ongoing.
The European Commission has pledged €1 billion through support from Horizon Europe, with additional funding expected from both public and private founding investors at the initial closing. The €5 billion figure remains a target rather than a guaranteed final amount, and officials have not revealed how much capital will be secured during the first closing. EQT retains the ability to attract further commitments as the fund expands its investor network.
Designed to offer late-stage financing to European firms working on strategic technological innovations, the fund will evaluate opportunities via an open, merit-based selection process. EQT will also be responsible for managing the portfolio and making individual investment choices independently. While investors will have a role in governance, they will not be involved in selecting specific companies. EQT obtained the management mandate through a competitive process organized specifically for this new fund.
Fund to focus on key technology areas
The Scaleup Europe Fund encompasses artificial intelligence, quantum computing, semiconductors, robotics, and autonomous systems. Its scope also includes sectors such as energy, space, biotechnology, medical technology, and advanced materials. Companies in agritech may qualify under the approved investment parameters, with the fund targeting firms that require substantial growth financing rounds. Eligible activities span digital technology, industrial systems, and life sciences.
Typically, individual investments are expected to be around €100 million or more, including follow-on funding. The fund is prepared to support privately held companies from Series B onwards. Applicants must operate in an eligible country or intend to establish operations there, with eligible locations including EU member states and certain Horizon Europe associated countries. Past support from European Innovation Council initiatives does not guarantee selection.
Participation from both public and private sector investors
Among the founding investors are Novo Holdings, EIFO, CriteriaCaixa, Santander, and Mouro Capital, with Italian representatives such as 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 participating. EQT intends to contribute its own capital alongside these partners.
This initiative is part of the broader EU Startup and Scaleup Strategy, introduced by European Commission President Ursula von der Leyen during her 2025 State of the Union speech. The fund’s goal is to boost the availability of growth capital for key European technology companies. To date, the Commission has not disclosed any specific recipients or announced individual investment amounts, but EQT will determine the first companies to receive funding under the fund’s commercial framework.