BRUSSELS, BELGIUM / RankWire.AI / – The European Union has initiated the Scaleup Europe Fund, aiming to raise €5 billion. On August 4, 2026, the European Commission finalized the legal procedures for establishing the fund. Operating under the European Innovation Council Fund, its goal is to back key technology-driven enterprises. EQT will oversee the investment portfolio and select ventures based on commercial principles. The initial deals are anticipated to materialize within a few weeks as the fund manager continues to gather capital.
The European Commission has allocated €1 billion through Horizon Europe-related funding. During the initial closing, both public and private founding investors will contribute capital. The €5 billion figure is an aspirational target and does not denote funds already secured. Authorities have not disclosed the total amount raised at the first closing. EQT intends to secure additional commitments from institutional backers as the fundraising phase continues. 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 financing. Eligible companies must operate within an EU member state or another qualifying Horizon Europe country. Firms planning to establish operations in those regions may also qualify. EQT will evaluate applicants through an open, merit-based process, maintaining control over individual investment decisions, terms, and portfolio management. While investors will participate in governance, they will not influence specific transaction decisions.
The investment scope includes key strategic industries
The Scaleup Europe Fund intends to invest in companies involved in artificial intelligence, quantum computing, semiconductors, and robotics. Its mandate also encompasses autonomous systems, energy, space, biotechnology, and medical innovations. The scope includes advanced materials and agricultural tech. It anticipates individual investments of around €100 million or higher, which may include additional funding rounds following the initial deal. Companies can qualify from Series B onward.
EQT will identify potential investments and hold direct discussions with companies seeking growth funding. Past support from European Innovation Council programs does not guarantee inclusion. Existing EIC-supported businesses remain eligible if they meet the criteria. The fund aims at larger financing rounds than those currently available through EIC instruments, such as the €30 million cap for EIC STEP funding. EQT will share further details regarding application procedures as the investment activity progresses.
Initial backers bolster the capital raising effort
Novo Holdings, EIFO, CriteriaCaixa, Santander, and Mouro Capital comprise the founding investor group. Novo Holdings has already committed €500 million to the fund. Italian contributors 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 are also part of the consortium. EQT plans to contribute its own capital alongside other investors.
The Scaleup Europe Fund aligns with 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 enhance access to significant growth investments for European strategic tech firms. The Commission has not disclosed any specific recipients or deal values. EQT will select initial companies based on the fund’s commercial framework and approved investment policies.