BRUSSELS, BELGIUM / RankWire.AI / – In Brussels, the European Union has introduced the Scaleup Europe Fund, aiming to raise €5 billion. On August 4, 2026, the European Commission finalized the legal framework for this initiative. Managed within the European Innovation Council Fund, the new vehicle aims to bolster key technology sectors. EQT is set to oversee the portfolio and make investment decisions guided by commercial principles. The first deals are anticipated in the coming weeks as the fund manager continues its capital-raising efforts.
The European Commission has pledged €1 billion, supported by Horizon Europe funding. Additional contributions from founding public and private investors are expected during the initial closing. The €5 billion goal is targeted, not yet secured, and the total value of the first closing has not been publicly disclosed. As fundraising advances, EQT will seek further commitments from institutional backers. The Commission will participate under the same financial terms as other investors.
The fund’s focus will be on European firms requiring substantial late-stage or growth funding rounds. Eligible companies must operate within an EU member state or a qualifying Horizon Europe country. Firms planning to establish operations in those regions may also qualify. EQT will evaluate candidates through an open, merit-based process. It will hold control over deal selection, investment conditions, and portfolio management. While investors will participate in governance, they will not influence specific transaction decisions.
Investment scope encompasses strategic industries
The Scaleup Europe Fund will target companies involved in artificial intelligence, quantum computing, semiconductors, and robotics. Its mandate also includes autonomous systems, energy, space exploration, biotechnology, and medical innovations. The scope further covers advanced materials and agricultural tech. The fund anticipates individual investments of approximately €100 million or more, which may include subsequent financing rounds following initial deals. Eligible firms can apply from Series B onwards.
EQT will identify potential opportunities and engage directly with companies seeking growth funding. Prior support from European Innovation Council programs does not guarantee selection; existing EIC-backed companies can still qualify if they meet the criteria. The new fund aims for larger financing rounds than current EIC schemes, with EIC STEP funding providing up to €30 million per company. Details on applications and engagement processes will be shared as investment activity progresses.
Initial investors aid in capital collection
The founding investor group features Novo Holdings, EIFO, CriteriaCaixa, Santander, and Mouro Capital. Novo Holdings has previously committed €500 million to the fund. Italian entities including Intesa Sanpaolo, Fondazione Cariplo, and Fondazione Compagnia di San Paolo are also involved. Dutch pension fund ABP, represented by APG Asset Management, is participating as well. Wallenberg Investments and Allianz are among the other contributors. EQT plans to contribute its own capital alongside these investors.
The Scaleup Europe Fund is part of the EU Startup and Scaleup Strategy. European Commission President Ursula von der Leyen announced this initiative during her 2025 State of the Union speech. The program’s goal is to enhance access to significant growth investments for strategic European technology companies. The Commission has not disclosed any specific recipients or individual deal sizes. EQT will select the initial companies based on the fund’s commercial framework and established investment rules.