The European fund for expanding technology companies starts investments, with an interest of 5 billion euros
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The Scaleup Europe Fund can invest directly in European companies in artificial intelligence, quantum technologies, biotechnology, and clean technologies, after the legal framework is finalized and EQT is designated as the manager. The first investments are expected in the coming weeks, and capital raising will continue until the target of 5 billion euros is reached.
The Scaleup Europe Fund can start investing directly in European technology companies with high growth potential, after the European Commission has finalized the necessary legal documentation for its operation. The first investments are expected in the coming weeks, and the fund will continue to attract public and private capital to reach a size of 5 billion euros.
In short
1. The fund will invest in European companies that are in the expansion stage, including in the fields of artificial intelligence, quantum technologies, biotechnology, and clean technologies.
2. The target of 5 billion euros represents the size sought by continuing to attract capital and not the amount that the fund has already announced it possesses.
3. The Scaleup Europe Fund was established within the framework of the European Innovation Council Fund, and the EU investment is supported by the Horizon Europe program.
4. The investment company EQT was selected through an open and competitive procedure and will make investment decisions independently, under market conditions.
5. The initial group of investors includes financial institutions, foundations, asset managers, and industrial investors from several European countries, along with the European Commission.
The fund is intended for companies that have surpassed the initial startup stage and need substantial capital for production expansion, staff recruitment, international development, or marketing technologies on a larger scale.
The Commission believes that Europe has strong scientific research and a large number of startups, but does not always provide the necessary capital for the next stage of development. Some European companies with high potential are seeking funding outside the continent to continue their expansion.
The Scaleup Europe Fund aims to reduce this deficit and allow companies to retain and keep a larger share of the value created in Europe. The Commission's document does not identify the firms that will receive the first investments and does not specify the value, number, or structure of the transactions that are prepared.
The fund is now operational after the adoption of the legal documentation and can operate at the capacity allowed by the attracted capital. It was established as part of the European Innovation Council Fund, the investment instrument associated with European programs for innovative companies.
The investment of the European Union is supported by Horizon Europe. The European contribution is combined with funds from private and institutional investors, so that public resources attract a larger volume of capital intended for expanding companies.
The communication does not specify the value of the Commission's contribution, the amount already committed by each investor, or the current size of the fund. The value of 5 billion euros is presented as the target to be achieved by continuing the capital raising process.
The investment manager is the private equity company EQT, selected through an open and competitive procedure. It can make investment decisions independently and under market conditions.
The separation between public institutions that contribute money and the manager that selects investments follows the application of commercial criteria in evaluating companies. The completion of the legal framework does not mean that all eligible firms will automatically receive funding.
EQT will need to identify projects, conduct financial and technological due diligence, and negotiate the terms of each transaction. The communication does not publish the detailed selection criteria, the minimum or maximum threshold of an investment, nor the participation that the fund can acquire in a company.
The areas mentioned for the first investments are artificial intelligence, quantum technologies, biotechnology, and clean technologies. The list indicates the fund's technological priorities, without being presented as a complete enumeration or as a pre-established allocation among sectors.
Financed companies must be European scale-ups considered capable of becoming global players. The document does not define in the presentation communication the complete geographical criterion and does not specify whether it is sufficient for the company to have its headquarters, main activity, or a significant part of its operations in Europe.
The founding group of investors brings together the European Commission and several public and private partners. Novo Holdings, a Danish organization that manages assets and invests specifically in the life sciences sector, is among the participants.
From Denmark, EIFO, the Export and Investment Fund, also participates. Spain is represented in the group by CriteriaCaixa and Santander, together with Mouro Capital.
Fondazione Compagnia di San Paolo participates alongside Intesa Sanpaolo, and Fondazione Cariplo is also part of the initial coalition of investors. The group thus includes Italian institutions from the banking and philanthropic sectors.
APG Asset Management participates on behalf of the Dutch pension fund ABP. Wallenberg Investments and Allianz are also included in the initial group.
The Commission's document does not detail the voting rights, governance structure, or the share of each investor in the fund's capital. Participation in the founding group does not automatically indicate that all organizations have committed the same amount or that they will have the same role in future decisions.
The investment attraction process will continue even after the fund becomes operational. As a result, the structure of investors and the available capital may change before the target of 5 billion euros is reached.
The President of the European Commission, Ursula von der Leyen, presented the fund as a tool through which European companies can find the necessary capital in Europe to become world leaders.
“When Europe invests in its innovators, Europe invests in its future. This is the goal of our Scaleup Europe Fund. From today, it will ensure our scale-ups can find what they need right here in Europe to grow into world-leading companies. To turn European innovation into our competitive edge,” said von der Leyen.
The European Commissioner for startups, research, and innovation, Ekaterina Zaharieva, stated that the fund aims to change the financing conditions for European technology companies and allow them to retain their base on the continent during expansion.
“Today’s announcement marks a change in the investment landscape for European technology companies. With the Scaleup Europe Fund we are building on Europe’s scientific prowess and strong performance in startups and closing the financing gap for our most promising companies to become global leaders while maintaining their base in Europe,” said Zaharieva.
The fund had been announced by the President of the Commission in the State of the Union speech in 2025. Its operationalization concludes the legal establishment phase and allows the manager to start selecting and making investments.
The timing of the first transactions is indicated only as being in the coming weeks. The communication does not provide a timeline for reaching the target of 5 billion euros and does not guarantee that the entire targeted capital will be raised.
Scale-up companies generally have a validated product or technology and are trying to rapidly increase their activity. Their capital needs are greater than in the initial phase, as expansion may involve factories, infrastructure, certifications, access to international markets, and recruiting a large number of employees.
The European Innovation Council Fund invests in companies developing high-risk technologies with significant market potential. The Scaleup Europe Fund operates within this structure but specifically seeks to finance companies that need capital for an advanced stage of growth.
Horizon Europe is the research and innovation program of the European Union. The support of the EU investment through this program does not turn the Scaleup Europe Fund into a grant scheme, as the fund makes direct investments in companies and follows decisions made under market conditions.
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