The European Commission has completed the final legal steps required to establish the Scaleup Europe Fund, a major new investment initiative designed to help Europe’s most promising technology companies grow into global market leaders.
With a target size of €5 billion, the Fund will invest directly in European scaleups operating in strategic technology sectors. Its first investments are expected to take place in the coming weeks.
The Scaleup Europe Fund forms part of the wider European Innovation Council Fund, while global private equity firm EQT will act as its independent investment manager. EQT will make investment decisions on commercial and merit-based grounds, independently from the European Commission and the Fund’s other investors.
Scaleup Europe Fund: Key Facts
- Target fund size: Approximately €5 billion
- European Commission contribution: €1 billion
- Investment type: Direct equity and growth capital
- Target companies: European technology companies at the growth and scaleup stages
- Fund manager: EQT
- Expected first investments: Within the weeks following the Fund’s legal establishment
- Geographical scope: EU Member States and countries associated with Pillar III of Horizon Europe
- Priority sectors: Artificial intelligence, quantum technologies, semiconductors, robotics, biotechnology, medical technology, clean energy, space, advanced materials and agritech
The European Commission’s participation is backed by Horizon Europe, the EU’s research and innovation framework programme.
What Is the Scaleup Europe Fund?
The Scaleup Europe Fund is a new late-stage and growth investment fund created to provide substantial capital to high-potential European technology companies.
Unlike a conventional EU funding call, the Fund will not primarily offer grants. It will make market-based equity investments in companies with the potential to grow rapidly, compete internationally and become global leaders while maintaining their operations and strategic value in Europe.
The initiative is intended to support major financing needs in the range of €100 million and above, including follow-on investments. It will therefore address a later stage of company development than existing EIC instruments such as the EIC Accelerator or EIC STEP Scale Up.
Why Has the Scaleup Europe Fund Been Created?
Europe has a strong research base, a growing startup ecosystem and an established pipeline of innovative companies. Nevertheless, many European scaleups face difficulties when they attempt to secure the large investment rounds required for international expansion.
As a result, promising companies may look outside Europe for growth capital. This can increase the risk of:
- Companies relocating their headquarters or key operations;
- Strategic European technologies coming under foreign control;
- Talent and intellectual property moving outside Europe;
- European markets becoming dependent on non-European technology providers.
The Scaleup Europe Fund seeks to close this financing gap by combining public and private investment in major, European-led funding rounds. Its wider objective is to keep the economic and strategic value created by European innovation within Europe.
Which Technology Sectors Will the Fund Support?
The Scaleup Europe Fund will focus on companies developing technologies considered strategically important for Europe’s competitiveness, resilience and technological sovereignty.
Priority areas include:
- Artificial intelligence and advanced digital technologies
- Quantum technologies
- Semiconductor technologies
- Robotics and autonomous systems
- Energy and clean technologies
- Space technologies
- Biotechnology and life sciences
- Medical technologies
- Advanced materials
- Advanced manufacturing
- Agricultural technologies
The final investment strategy and precise sectoral focus will be implemented by EQT in accordance with the Fund’s investment guidelines. The Fund is designed to remain sufficiently flexible to invest in emerging strategic technologies as markets evolve.
Which Companies May Be Eligible?
The Scaleup Europe Fund will target companies that are:
- At the growth or scaleup stage;
- Developing strategic or breakthrough technologies;
- Seeking substantial investment capital;
- Located in, or intending to establish themselves in, an EU Member State or a country associated with Pillar III of Horizon Europe.
The Fund is intended for companies with significant growth potential rather than early-stage startups requiring relatively small seed investments.
Previous participation in the EIC Accelerator, EIC STEP Scale Up or another EIC instrument may help demonstrate a company’s development history. However, the European Innovation Council has clarified that participation in an existing EIC programme will not provide automatic preference or guaranteed access to the Scaleup Europe Fund.
How Can Companies Apply?
The Scaleup Europe Fund will not initially operate like a standard EU call with a fixed deadline and an application form on the Funding and Tenders Portal.
As investment manager, EQT will manage the full investment process, including:
- Identifying potential investment opportunities;
- Engaging with European scaleup companies;
- Evaluating technologies and business models;
- Conducting commercial, financial and technical due diligence;
- Selecting investee companies;
- Negotiating and completing investments.
Company selection will follow an open, transparent and merit-based process aligned with the Fund’s investment guidelines. Further information about deal sourcing, company engagement and the investment process is expected to be communicated by EQT.
Therefore, interested companies should not assume that a traditional open grant application is currently available. They should instead monitor forthcoming information from the Fund manager and prepare to demonstrate their investment readiness.
Who Is Investing in the Scaleup Europe Fund?
The Fund is built around a public-private investment model. The European Commission is participating alongside a group of major European institutional and private investors.
The founding investor group includes:
- Novo Holdings;
- EIFO, the Export and Investment Fund of Denmark;
- CriteriaCaixa;
- Santander and Mouro Capital;
- Fondazione Compagnia di San Paolo;
- Intesa Sanpaolo;
- Fondazione Cariplo;
- APG Asset Management on behalf of Dutch pension fund ABP;
- Wallenberg Investments;
- Allianz;
- The European Commission.
Additional fundraising will continue with the objective of reaching the Fund’s €5 billion target. A subsequent fundraising round may also broaden and diversify the investor base.
The Role of EQT
EQT was selected through an open and competitive process to manage the Scaleup Europe Fund.
The company will operate as an independent and market-based investment manager. Although the European Commission and other founding investors will participate in the Fund’s governance as investors, they will not direct individual investment decisions.
This structure is intended to combine Europe’s strategic objectives with professional, commercially driven investment management.
Scaleup Europe Fund vs EIC STEP Scale Up
The Scaleup Europe Fund should not be confused with the existing EIC STEP Scale Up funding scheme.
EIC STEP Scale Up provides direct equity investments of between €10 million and €30 million, helping companies assemble larger financing rounds of €50 million or more. By comparison, the Scaleup Europe Fund is intended to address substantially larger growth-stage financing needs, potentially in the €100 million-and-above range.
There is no mandatory or formal link between the two initiatives. Companies do not need to be part of the existing EIC portfolio to be considered by the new Fund, although the portfolio may provide EQT with a potential pipeline of investment-ready European companies.
How Can European Scaleups Prepare?
Although detailed investment procedures have not yet been published, potential candidates can begin strengthening their investment readiness.
Companies should prepare to demonstrate:
- A scalable and defensible business model;
- Strong intellectual property or technological differentiation;
- Evidence of market traction and international growth potential;
- A credible strategy for deploying major growth capital;
- Strong governance and an experienced management team;
- A clear contribution to Europe’s strategic technological capabilities;
- A commitment to maintaining meaningful operations, talent or strategic assets in Europe;
- Readiness for extensive financial, technical, legal and commercial due diligence.
These are practical preparation measures rather than officially published selection criteria. Companies should review the final investment guidelines and engagement procedures once EQT releases them.
What the Fund Means for Europe’s Innovation Ecosystem
The Scaleup Europe Fund represents an important shift in European innovation policy. EU support has traditionally been strongly associated with research grants and early-stage innovation funding. This new initiative places greater emphasis on the large-scale equity capital required after technologies have been validated and companies are ready to expand internationally.
By bringing together institutional capital, private investors and EU backing, the Fund aims to create larger European-led investment rounds and reduce the need for successful European companies to depend primarily on foreign growth capital.
The initiative is also a central component of the EU Startup and Scaleup Strategy, which seeks to improve financing, accelerate market expansion, attract talent and create a more favourable environment for innovative companies to launch and grow in Europe.
Frequently Asked Questions
Is the Scaleup Europe Fund a grant programme?
No. It is principally a late-stage and growth equity investment fund. Selected companies will receive investment capital rather than conventional non-repayable grants.
How large will the Fund be?
The Fund aims to reach approximately €5 billion. The European Commission has committed €1 billion, with the remaining capital being raised from private and institutional investors.
When will the first investments be made?
Following the completion of the Fund’s legal establishment on 4 August 2026, the first investments are expected in the coming weeks.
Can an early-stage startup apply?
The Fund is primarily intended for growth-stage and scaleup companies seeking major investment amounts. Early-stage companies requiring smaller investments are more likely to fit other instruments such as the EIC Accelerator.
Do companies need previous EIC funding?
No. Previous participation in EIC programmes is not mandatory and will not provide preferential treatment.
Is there an application deadline?
No conventional application deadline has been announced. EQT will manage deal sourcing and engagement with potential investee companies, with more information expected as the investment process becomes fully operational.
A New Growth Opportunity for European Technology Companies
The Scaleup Europe Fund is designed to address one of Europe’s most persistent innovation challenges: transforming scientific and technological excellence into globally competitive companies.
Its success will depend not only on the amount of capital raised but also on its capacity to identify ambitious businesses, move at market speed and support companies through the demanding transition from promising scaleup to international technology leader.
European companies developing strategic technologies should now assess their investment readiness, strengthen their European growth strategy and closely follow the forthcoming engagement procedures from EQT.
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