The European Innovation Fund Council has chosen EQT as its preferred investment adviser and administrator for the Scaleup Europe Fund. This ambitious initiative, backed by a substantial budget of €5 billion, aims to fund high-potential deep tech companies in Europe, addressing the pressing need to reduce their reliance on external capital sources.
The Scaleup Europe Fund is being highlighted as the largest fund of this nature mobilized so far in Europe. Its primary goal is to support deep tech companies operating in several strategic sectors, including artificial intelligence (AI), quantum computing, dual-use technologies, clean energy, space technologies, biotechnology, and medical innovation. By investing in these critical areas, the fund seeks to foster the growth of European enterprises and enhance innovation across the continent.
Following a competitive selection process, EQT was selected based on its extensive experience in growth equity investments within the technology sector. The organization’s pan-European presence, institutional infrastructure, and operational expertise were significant factors that influenced this choice. The decision is expected to pave the way for the operational launch of the fund, with the necessary contractual agreements and approvals to be finalized shortly.
The Scaleup Europe Fund is integral to the EU’s broader strategy for startups and scaleups, as articulated by the European Commission. This fund is envisioned to bridge the funding gap faced by advanced-stage growth companies, encouraging promising startups to remain within Europe rather than seek financing abroad. This initiative addresses a critical challenge in the European innovation ecosystem, where many deep tech firms venture outside Europe for essential growth capital.
EQT, together with the EIC Fund, will soon finalize the legal agreements dictating the fund’s structure, governance, and investment framework. The formal commitments by the founding investors are progressing through their respective due diligence and internal approval processes, and these should conclude in the coming weeks. This will lead to the first closing of the fund and the commencement of investment activities.
The launch of the Scaleup Europe Fund is backed by a coalition of key founding investors who collaborated with the European Commission to shape the fund’s structure and investment parameters. This coalition includes notable names such as Novo Holdings, EIFO, and various financial institutions that typify long-term European capital. Their collective involvement adds significant credibility and reflects a robust market belief in the fund’s potential for returns.
The Scaleup Europe Fund is set to be officially presented during the EIC Summit on June 3, 2026, with initial investments anticipated in the fall of that year. Ekaterina Zaharieva, the Commissioner for Startups, Research, and Innovation, emphasized that this initiative represents a bold step towards scaling up European innovation by uniting public and private capital in a shared vision for European leadership.
Operating under the established framework of the EIC Fund, this new initiative is designed to ensure that investment decisions remain independent and market-driven, guided by a private sector manager. As part of this strategy, the European Union, along with leading private investors, aims to create additional funding rounds in the second half of 2026, thereby capturing more interest from potential investors aligned with the fund’s strategic objectives.
In summary, the Scaleup Europe Fund seeks to bolster the growth of European companies requiring capital to expand rapidly into global markets. By addressing the historical trend of deep tech companies seeking external financing, this initiative aims to fortify the European ecosystem, supporting innovation and economic security across the continent.
