BRUSSELS, BELGIUM / RankWire.AI / – European Union has initiated the Scaleup Europe Fund, aiming to raise €5 billion. On August 4, 2026, the European Commission finalized the legal procedures necessary for establishing the fund, which will operate under the European Innovation Council Fund to bolster key technology sectors. Managed by EQT, the fund will oversee the portfolio and make investment decisions based on commercial standards. Initial investments are anticipated within weeks, as the manager continues efforts to gather capital.
In early stages, the European Commission committed €1 billion, supported by Horizon Europe funding. Simultaneously, founding public and private backers are expected to contribute capital during the fund’s first closing. It’s important to note that the €5 billion target remains an aspirational goal and does not reflect funds already secured. The total amount raised in the initial closing has not been publicly disclosed. As fundraising advances, EQT plans to solicit additional commitments from institutional investors. The European Commission’s investment will mirror the same financial terms offered to other investors.
Targeting European firms that require substantial late-stage or growth financing, the fund will support companies operating within EU member states or other qualifying Horizon Europe nations. Businesses planning to establish operations in these regions may also qualify. The selection process will be open and merit-based, with EQT retaining control over individual investments, terms, and portfolio management. While investors will participate in governance, they will not influence individual deal decisions.
The fund’s focus on key technological sectors
In its investment scope, the Scaleup Europe Fund will consider companies involved in artificial intelligence, quantum technology, semiconductors, and robotics. It also encompasses autonomous systems, energy, space, biotech, and medical technology. Additionally, advanced materials and agricultural tech fall within the fund’s approved categories. The typical investment size is expected to be around €100 million or more, which may include subsequent funding rounds after an initial deal. Companies can qualify for funding starting from Series B onwards.
Throughout the process, EQT will actively source potential investments and engage directly with companies seeking growth capital. Prior support from European Innovation Council programs does not guarantee selection, though existing EIC-backed businesses can still apply if they meet the criteria. The new fund aims to support larger funding rounds than those currently available through EIC instruments, such as the €30 million maximum for EIC STEP funding. EQT will provide more details about the application process and engagement as the investment activities unfold.
Initial investors strengthen the fundraising efforts
The founding investor group comprises Novo Holdings, EIFO, CriteriaCaixa, Santander, and Mouro Capital. Novo Holdings has already announced a €500 million commitment to the fund. Italian contributors include Intesa Sanpaolo, Fondazione Cariplo, and Fondazione Compagnia di San Paolo. On behalf of Dutch pension fund ABP, APG Asset Management is participating, while Wallenberg Investments and Allianz also join the consortium. EQT intends 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 address. The program aims to improve access to significant growth investments for European strategic technology enterprises. The European Commission has not disclosed specific recipients or deal sizes. EQT will select initial beneficiaries based on the fund’s commercial framework and investment criteria.