BRUSSELS, BELGIUM / RankWire.AI / – On August 4, 2026, the European Union finalized the legal framework for the Scaleup Europe Fund, which aims to raise €5 billion. Managed within the European Innovation Council Fund, this initiative is designed to back key technology enterprises in Europe. EQT will oversee the investment portfolio and select deals based on commercial principles. The first investments are anticipated within weeks, as the fund manager continues efforts to raise capital.
The European Commission has allocated €1 billion, supported by Horizon Europe funding, towards this effort. During the initial closing, founding public and private investors will contribute additional capital. The €5 billion target remains an aspirational figure rather than an indication of already secured funds. The total value of the first closing has not been disclosed by officials. EQT will actively seek further commitments from institutional investors as the fundraising progresses. The Commission plans to invest on the same financial terms as other participants.
The fund’s focus will be on European firms requiring substantial late-stage or growth financing rounds. Eligible companies must operate within an EU member state or another Horizon Europe qualifying country. Companies planning to establish operations in these regions may also qualify. EQT will evaluate candidates through an open, merit-based process, maintaining control over individual deal selection, investment conditions, and overall portfolio management. While investors will participate in governance, they will not influence specific transactions.
The investment scope encompasses key sectors
Target companies in artificial intelligence, quantum technology, semiconductors, and robotics will be considered. Additionally, the mandate covers autonomous systems, energy, space, biotechnology, and medical technology, along with advanced materials and agricultural tech. The fund expects individual investments to amount to approximately €100 million or higher, which may include subsequent funding rounds following an initial deal. Eligible businesses can apply from Series B onward.
EQT will identify potential investment opportunities and engage directly with companies seeking growth capital. Prior support from European Innovation Council initiatives does not guarantee selection. Existing EIC-supported firms can still qualify if they meet the criteria. The new fund aims at larger funding rounds than current EIC instruments, such as the €30 million maximum for EIC STEP funding per company. EQT will provide further details on applications and engagement as investment activities unfold.
Major investors back the funding round
The founding investor group features Novo Holdings, EIFO, CriteriaCaixa, Santander, and Mouro Capital. Novo Holdings has previously committed €500 million 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 joins the group. Wallenberg Investments and Allianz are also participating. EQT intends to contribute its own capital alongside these investors.
The Scaleup Europe Fund is part of the EU Startup and Scaleup Strategy, introduced by European Commission President Ursula von der Leyen during her 2025 State of the Union address. The initiative aims to enhance access to sizable growth investments for European strategic technology companies. The European Commission has not disclosed any specific recipients or individual deal sizes. EQT will select the initial companies based on the fund’s commercial criteria and approved investment policies.