BRUSSELS, BELGIUM / RankWire.AI / – In Brussels, the European Union has officially established the Scaleup Europe Fund, aiming to raise €5 billion. The European Commission finalized the fund’s legal framework on August 4, 2026. This initiative is housed within the European Innovation Council Fund. EQT will oversee investment decisions and select participating companies based on commercial criteria. The Commission anticipates that initial investments could occur within weeks as fundraising efforts continue.
Since then, the European Commission has pledged €1 billion backed by Horizon Europe support. Additional funding from both public and private investors will be contributed at the fund’s initial closing. The €5 billion figure remains a target rather than a confirmed sum, and officials have yet to specify the amount secured during the first closing. EQT has the capacity to attract further commitments as the investor base grows.
Based in Brussels, the fund intends to provide late-stage capital to European firms developing essential technologies. EQT will evaluate opportunities through an open, merit-based process and will manage the portfolio independently. While investors will take part in governance, they will not have a say in individual company selections. The management mandate was awarded to EQT following a competitive bidding process designed specifically for this new vehicle.
Fund focuses on key innovation sectors
The Scaleup Europe Fund targets sectors including artificial intelligence, quantum computing, semiconductors, robotics, and autonomous systems. Its scope also encompasses energy, space, biotechnology, medical technology, and advanced materials. Additionally, agritech companies are eligible under the approved investment parameters. The fund’s primary focus is on companies requiring substantial growth financing rounds. Eligible activities include digital technology, industrial systems, and life sciences.
Typically, individual investments will total around €100 million or more, including follow-on funding. The fund is prepared to back privately owned companies starting from Series B funding onwards. Applicants must operate within an eligible country or plan to establish operations there. Eligible locations include EU member states and certain nations associated with Horizon Europe. Prior support from European Innovation Council programs does not guarantee selection for the fund.
Participation from both public and private sector investors
Among the initial investors are Novo Holdings, EIFO, CriteriaCaixa, Santander, and Mouro Capital. Italian investors include Intesa Sanpaolo, Fondazione Cariplo, and Fondazione Compagnia di San Paolo. Dutch pension fund ABP is represented by APG Asset Management. Wallenberg Investments and Allianz have also joined the pool. EQT intends to contribute its own capital alongside these partners.
This initiative aligns with the EU Startup and Scaleup Strategy. European Commission President Ursula von der Leyen announced the plan during her 2025 State of the Union address. The fund’s goal is to enhance growth capital availability for critical European technology companies. To date, the Commission has not disclosed any specific recipients or individual investment figures. EQT will identify the initial companies to receive funding under the fund’s established commercial framework.