BRUSSELS, BELGIUM / RankWire.AI / – The European Union has formally created the Scaleup Europe Fund with a €5 billion fundraising target. The European Commission completed the fund’s legal establishment on August 4, 2026. The vehicle sits within the European Innovation Council Fund. EQT will manage investments and select companies under commercial guidelines. The Commission expects the first transactions to begin within weeks as fundraising continues.
The European Commission has committed €1 billion through financing supported by Horizon Europe. Public and private founding investors will provide additional capital at the initial closing. The €5 billion amount remains a fundraising objective rather than a confirmed final total. Officials have not disclosed how much capital the first closing will contain. EQT can raise further commitments as the fund expands its investor base.
The fund will provide late-stage financing to European companies developing strategic technologies. EQT will assess opportunities through an open and merit-based selection process. It will also manage the portfolio and make individual investment decisions independently. Investors will participate in governance but will not choose specific companies. EQT received the management mandate after a competitive process organized for the new vehicle.
Fund targets major technology sectors
The Scaleup Europe Fund covers artificial intelligence, quantum technology, semiconductors, robotics and autonomous systems. Its mandate also includes energy, space, biotechnology, medical technology and advanced materials. Agritech companies can also qualify under the approved investment scope. The fund will focus on businesses that need large growth financing rounds. Eligible activity spans digital technology, industrial systems and life sciences.
Individual investments will generally reach about €100 million or more, including follow-on capital. The fund can support privately held companies from Series B onward. Applicants must operate in an eligible country or plan to establish operations there. Eligible locations include EU member states and certain countries associated with Horizon Europe. Previous support from European Innovation Council programs will not guarantee selection.
Public and private investors join fund
Founding participants include Novo Holdings, EIFO, CriteriaCaixa, Santander and Mouro Capital. Intesa Sanpaolo, Fondazione Cariplo and Fondazione Compagnia di San Paolo represent Italian investors. APG Asset Management is participating for Dutch pension fund ABP. Wallenberg Investments and Allianz have also joined the group. EQT plans to invest its own capital alongside the other participants.
The initiative forms part of the EU Startup and Scaleup Strategy. European Commission President Ursula von der Leyen introduced the plan during her 2025 State of the Union address. The fund aims to increase available growth capital for strategic European technology companies. The Commission has not identified any recipients or announced individual investment amounts. EQT will select the first companies under the fund’s approved commercial framework.