BRUSSELS, BELGIUM / RankWire.AI / – The European Union has launched the Scaleup Europe Fund with a fundraising target of €5 billion. The European Commission completed the final legal steps for the vehicle on August 4, 2026. The fund operates within the European Innovation Council Fund and will support strategic technology businesses. EQT will manage the portfolio and choose investments under commercial guidelines. The first transactions are expected within weeks as the manager continues raising capital.
The European Commission has committed €1 billion through funding backed by Horizon Europe. Founding public and private investors will add capital during the initial closing. The €5 billion figure remains a target and does not represent money already secured. Officials have not published the total value of the first closing. EQT will seek further commitments from institutional investors as fundraising proceeds. The Commission will invest on the same financial terms as other participants.
The fund will focus on European companies that require large late-stage or growth financing rounds. Eligible businesses must operate in an EU member state or another qualifying Horizon Europe country. Companies planning to establish operations in those markets may also qualify. EQT will review candidates through an open and merit-based process. It will control individual deal selection, investment terms and portfolio management. Investors will take part in governance but will not direct specific transactions.
Investment mandate covers strategic sectors
The Scaleup Europe Fund will consider companies working in artificial intelligence, quantum technology, semiconductors and robotics. Its mandate also includes autonomous systems, energy, space, biotechnology and medical technology. Advanced materials and agricultural technology fall within the approved scope. The fund expects individual investments to reach about €100 million or more. That amount can include additional financing after an initial transaction. Eligible companies can enter the process from Series B onward.
EQT will source potential investments and conduct direct discussions with companies seeking growth capital. Previous support from European Innovation Council programs will not guarantee selection. Existing EIC-backed businesses can still enter the investment pipeline if they meet the criteria. The new vehicle targets larger financing rounds than current EIC instruments. EIC STEP funding currently reaches up to €30 million for each company. EQT will provide further application and engagement details as investment activity develops.
Founding investors support capital raise
The founding investor group includes Novo Holdings, EIFO, CriteriaCaixa, Santander and Mouro Capital. Novo Holdings previously announced a €500 million commitment to the fund. Italian participants include Intesa Sanpaolo, Fondazione Cariplo and Fondazione Compagnia di San Paolo. APG Asset Management is joining on behalf of Dutch pension fund ABP. Wallenberg Investments and Allianz also form part of the group. EQT plans to contribute its own capital alongside the other investors.
The Scaleup Europe Fund forms 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 program seeks to increase access to large growth investments for European strategic technology companies. The Commission has not named any recipients or released individual deal values. EQT will select the first companies according to the fund’s commercial framework and approved investment rules.