The European Commission has completed the final legal steps to establish the Scaleup Europe Fund, paving the way for a new investment vehicle designed to help Europe’s fastest-growing companies expand and compete on the global stage.
The fund has a long-term target of raising €5bn to support high-potential businesses across strategic technology sectors.
The Scaleup Europe Fund has been created to address one of Europe’s long-standing innovation challenges: helping successful startups secure the large-scale investment needed to become global market leaders without relocating overseas.
The first investments are expected to be made within the coming weeks. With the legal framework now in place, the fund becomes operational as part of the European Innovation Council (EIC) Fund.
Global private equity firm EQT has been appointed as the independent investment manager and will make investment decisions on commercial terms following its selection through an open and competitive process.
Speaking on the fund, President of the European Commission, Ursula von der Leyen, commented: “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 scaleups can find what they need right here in Europe to grow into world-leading companies. To turn European innovation into our competitive edge.”
Closing Europe’s scaleup funding gap
The initiative was first announced by European Commission President Ursula von der Leyen during her 2025 State of the Union address as part of a broader strategy to strengthen Europe’s innovation ecosystem.
Europe has consistently produced world-class research and a strong pipeline of technology startups, yet many promising companies have struggled to access the significant growth capital required to scale internationally.
As a result, some have sought investment outside Europe, shifting economic value and innovation abroad.
The Scaleup Europe Fund is intended to bridge this financing gap by providing direct investment to companies with the potential to become global technology leaders while keeping talent, intellectual property and economic benefits within Europe.
Focus on strategic technologies
The fund will prioritise investments in businesses operating in sectors regarded as strategically important for Europe’s future competitiveness.
These include artificial intelligence, quantum technologies, biotechnology and clean technologies, reflecting the EU’s wider industrial and digital policy objectives.
By supporting companies at the scaleup stage, the Commission aims to strengthen Europe’s position in emerging global technology markets.
Ekaterina Zaharieva, Commissioner for Startups, Research and Innovation, added: “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.
“The Scaleup Europe Fund also demonstrates what we can achieve in a short time when the Commission works hand in hand with leading private investors.”
Public and private investors unite
The founding investor group combines support from both public institutions and major private investors.
Participants include:
- Novo Holdings
- EIFO
- CriteriaCaixa
- Santander through Mouro Capital
- Fondazione Compagnia di San Paolo together with Intesa Sanpaolo and Fondazione Cariplo
- APG Asset Management on behalf of Dutch pension fund ABP
- Wallenberg Investments
- Allianz
- European Commission
Fundraising efforts will continue as the initiative works towards its €5bn investment target, with the goal of providing Europe’s scaleup companies with the capital needed to accelerate growth and compete globally.
