EU Unveils Ambitious €5bn Scaleup Europe Fund to Boost Innovation and Growth

The European Commission Launches Scaleup Europe Fund to Support Fast-Growing Companies

The European Commission has finalized the establishment of the Scaleup Europe Fund, a new investment vehicle aimed at helping Europe’s fastest-growing companies expand globally. This fund, with a target of raising €5bn, will provide support to high-potential businesses in key technology sectors.

The Scaleup Europe Fund addresses the challenge of helping successful startups secure significant investments to become global market leaders without having to relocate overseas. The fund is now operational under the European Innovation Council (EIC) Fund, with the first investments expected to be made soon.

EQT, a global private equity firm, has been appointed as the independent investment manager for the Scaleup Europe Fund. President of the European Commission, Ursula von der Leyen, emphasized the importance of investing in innovators to secure Europe’s future competitiveness through this fund.

Addressing Europe’s Scaleup Funding Gap

European Commission President Ursula von der Leyen first announced the Scaleup Europe Fund in her 2025 State of the Union address as part of a strategy to strengthen Europe’s innovation ecosystem. Despite Europe’s strong research and technology startup pipeline, many companies have struggled to access the necessary growth capital to scale internationally.

The fund aims to bridge this financing gap by providing direct investments 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 Scaleup Europe Fund will prioritize investments in sectors crucial for Europe’s future competitiveness, such as artificial intelligence, quantum technologies, biotechnology, and clean technologies. By supporting companies at the scaleup stage, the Commission aims to bolster Europe’s position in global technology markets.

Commissioner for Startups, Research, and Innovation Ekaterina Zaharieva highlighted the fund’s role in supporting European technology companies to become global leaders while maintaining their base in Europe.

Public and Private Investors Collaboration

The Scaleup Europe Fund has garnered support from a diverse group of investors, including public institutions and major private investors. Participants in the founding investor group include Novo Holdings, EIFO, CriteriaCaixa, Santander through Mouro Capital, and others.

Fundraising efforts will continue to reach the €5bn investment target, with the goal of providing Europe’s scaleup companies with the capital needed to accelerate growth and compete globally.