The European Commission has completed the final legal steps required to establish the Scaleup Europe Fund, which will invest in European scaleup companies with the aim of helping them grow faster and compete globally. The fund is targeting a total size of EUR 5 billion, according to Business Review.
“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,” said European Commission President Ursula von der Leyen.
Following the adoption of its legal documentation, the Scaleup Europe Fund has been established as part of the European Innovation Council Fund.
Private equity firm EQT has taken up its role as investment manager and is now authorised to make investment decisions independently and on market terms. EQT was selected through an open and competitive process.
The fund is now able to operate at full capacity, with its first investments expected in the coming weeks.
Public and private capital for European scaleups
The Scaleup Europe Fund will invest directly in leading European scaleup companies operating in critical technology areas, including artificial intelligence, quantum technologies, biotechnology and clean technologies.
Its founding investor group includes the European Commission, Novo Holdings, EIFO, CriteriaCaixa, Santander and 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 and Allianz.
Further fundraising will continue with the objective of reaching EUR 5 billion.
“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,” said Ekaterina Zaharieva, European Commissioner for Startups, Research and Innovation.
The EU launched the Scaleup Europe Fund to help promising companies grow into global leaders and reduce their reliance on foreign capital. The initiative aims to address Europe’s financing gap, retain more value from innovation within the continent, and is supported by Horizon Europe.
Europe’s technology and innovation ecosystem is undergoing a pivotal transformation, driven by an urgent need to bridge the persistent funding gap between early-stage startups and global tech giants. At the heart of this strategy lies the Scaleup Europe Fund—a landmark initiative designed to mobilize institutional capital, retain high-growth companies within the continent, and solidify Europe’s technological sovereignty on the global stage.
The Scaleup Paradox: Why Europe Needs Large-Scale Capital
For decades, Europe has proven to be a powerhouse of scientific research, engineering talent, and early-stage startup creation. From London and Paris to Berlin and Tallinn, European founders have successfully launched thousands of innovative companies.
However, the ecosystem historically faced a structural vulnerability known as the “scaleup gap.” When European startups reached the growth phase (Series C and beyond)—requiring capital injections of €50 million to €100 million or more—local venture capital funds often lacked the depth to lead these massive rounds. Consequently, Europe’s most promising unicorns frequently turned to foreign investors, predominantly from the United States and Asia, or chose to relocate their headquarters and list on foreign stock exchanges like the NASDAQ.
The Scaleup Europe Fund was conceived to rewrite this narrative by offering late-stage European tech companies the capital required to expand globally while remaining anchored in Europe.
Key Pillars of the Scaleup Europe Initiative
| Core Objective | Strategic Focus |
| Capital Mobilization | Pooling public anchor investments alongside institutional private capital (pension funds, insurance firms, sovereign funds) |
| Growth-Stage Funding | Directing capital toward Series C, Series D, and pre-IPO financing rounds |
| Deep Tech Prioritization | Supporting strategic sectors including AI, quantum computing, clean energy, biotechnology, and cybersecurity |
| Retaining European Sovereignty | Preventing forced acquisitions by non-European conglomerates and keeping high-value intellectual property within Europe |
Mobilizing Institutional Investors
A central pillar of the fund’s strategy is unlocking Europe’s vast pool of institutional capital. Historically, European pension funds and insurance companies allocated a significantly lower percentage of their assets under management to venture capital compared to their North American counterparts.
By providing a structured, risk-mitigated vehicle supported by public institutions—such as the European Investment Fund (EIF) and national promotional banks—the Scaleup Europe Fund offers a secure pipeline for private institutional investors to gain exposure to high-yield European tech growth.
Strategic Importance for Deep Tech and Sustainability
The timing of the fund’s deployment coincides with Europe’s dual transition toward digital transformation and net-zero sustainability goals. Deep tech innovations—such as next-generation semiconductors, climate technologies, and advanced biotechnology—require longer development cycles and higher initial capital investments than traditional software platforms.
By backing large-scale funds capable of writing substantial checks, the initiative ensures that breakthrough European innovations transition from university laboratories into commercialized global market leaders.
Driving Global Competitiveness
As global competition intensifies around critical technologies, the Scaleup Europe Fund serves as a catalyst for economic resilience. By fostering an environment where founders can scale from local startups to global market leaders without leaving the continent, Europe is establishing a sustainable framework for economic growth, job creation, and technological leadership in the decades to come.
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