The European Commission has finalized the legal procedures to set up the Scaleup Europe Fund, creating a new investment tool aimed at assisting Europe’s rapidly growing businesses in scaling and competing internationally.
The fund aims to raise €5bn in the long run to back high-potential companies in key technology sectors.
The Scaleup Europe Fund was established to tackle a persistent challenge in Europe’s innovation landscape: assisting thriving startups in obtaining the substantial investments required to emerge as global market leaders while remaining in their home countries.
Initial investments are anticipated to occur in the next few weeks. Now that the legal structure is established, the fund is activated as a component of the European Innovation Council (EIC) Fund.
Global private equity company EQT has been chosen as the independent investment manager and will determine investment decisions based on commercial terms after being selected through an open and competitive procedure.
Discussing the fund, Ursula von der Leyen, President of the European Commission, stated: “When Europe supports its innovators, Europe secures its future." That is the objective of our Scaleup Europe Fund.
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“Starting today, we will enable our scaleups to locate everything they require within Europe to develop into globally leading firms.” Transform European innovation into our advantage.
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The project was initially revealed by European Commission President Ursula von der Leyen in her 2025 State of the Union speech as a component of a wider plan to enhance Europe’s innovation system.
Europe has continually generated top-tier research and a robust pipeline of technology startups, but numerous promising companies have faced challenges in obtaining the substantial growth capital needed for international expansion.
Consequently, some have pursued investment beyond Europe, transferring economic value and innovation overseas.
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The Scaleup Europe Fund aims to fill this funding void by offering direct investment to firms capable of evolving into global technology frontrunners while retaining talent, intellectual property, and economic advantages in Europe.