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 legal setup of the fund on August 4, 2026. Operating within the European Innovation Council Fund, the vehicle will be managed by EQT, which will oversee investments and select companies based on commercial guidelines. The Commission anticipates initial transactions will commence within weeks as the fundraising process continues.
The European Commission has pledged €1 billion through financing supported by Horizon Europe, with additional capital from public and private founding investors expected at the initial closing. The €5 billion figure remains an objective for fundraising rather than a confirmed cap. Authorities have yet to reveal the amount of capital that will be included in the first closing. EQT is authorized to seek further commitments as the fund broadens its investor base.
The fund’s purpose is to provide late-stage funding to European firms working on strategic technologies. EQT will evaluate opportunities through an open, merit-based selection process, managing the portfolio and making independent investment decisions. While investors will take part in governance, they will not choose individual companies. EQT obtained the management mandate following a competitive process held for establishing the new vehicle.
Fund focuses on key technology sectors
The Scaleup Europe Fund targets artificial intelligence, quantum technology, semiconductors, robotics and autonomous systems. Its scope also includes energy, space, biotechnology, medical technology and advanced materials. Agritech companies may qualify within the approved investment framework. The fund aims to support companies requiring substantial growth financing rounds, focusing on 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 open to supporting privately held firms from Series B stage onward. Applicants must operate within an eligible country or plan to establish operations there. Eligible locations include EU member states and certain countries associated with Horizon Europe. Prior support from European Innovation Council programs does not guarantee selection.
Public and private sectors collaborate in fund formation
Participants in the founding of the fund 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 contribute its own capital alongside these investors.
This initiative is part of the EU Startup and Scaleup Strategy. European Commission President Ursula von der Leyen announced the plan during her 2025 State of the Union speech. The goal is to bolster growth capital availability for strategic European technology firms. The Commission has not disclosed any specific recipients or individual investment amounts. EQT will be responsible for selecting the first companies under the fund’s commercial framework.