The ambition is unprecedented: to create a fund worth around 5 billion euros, capable of investing sums that the European ecosystem still struggles to raise when a company enters its hyper-growth phase. The fund is expected to make its first investments as early as autumn 2026.
This fund is not suitable for all start-ups
The first point to understand is that the Scaleup Europe Fund will not provide funding for start-ups that are still looking for their first customers.
It targets companies that have already achieved significant commercial success, possess tried-and-tested technology, and now need to accelerate their global expansion.
The aim is to finance funding rounds which European investors often find difficult to keep up with when they exceed several tens, or even hundreds, of millions of euros.
The Commission clearly refers to “late-stage growth”, that is to say, companies that have already moved beyond the traditional venture capital stage and are now seeking funding to scale up their production, enter new markets, make acquisitions or prepare for an initial public offering.
Who will be eligible?
The fund primarily targets European technology companies developing disruptive innovations.
Priority sectors include, in particular:
• artificial intelligence;
• semiconductors;
• quantum computing;
• cybersecurity;
• space technologies;
• robotics;
• biotechnology;
• climate technologies;
• new materials;
• digital infrastructure.
The idea, therefore, is not to support just any growing company, but rather those businesses considered strategic for European technological sovereignty.
How much will the fund be able to invest?
Unlike the EIC Accelerator, which generally invests a few million euros, the Scaleup Europe Fund aims to invest in much larger transactions.
The European Commission does not set a single investment amount, but explains that the fund will participate in large funding rounds alongside private investors. The aim is precisely to be able to support companies as they seek funding of several tens, or even more than, 100 million euros.
In practice, the fund will not replace private investors: it will complement them in order to increase the size of funding rounds.
It will not be a grant
The scheme is also very different from traditional EU aid.
The Scaleup Europe Fund will invest in equity. In other words, it will become a shareholder in the companies it finances and will aim to sell its stake at a later date at a profit, just like any private equity fund.
The aim is to demonstrate that it is possible to generate returns whilst retaining Europe’s future technology leaders.
Who’s paying?
The editing is probably the most original aspect.
The fund is not financed solely from the EU budget.
The European Commission is providing an initial injection of one billion euros to serve as seed capital, but the remainder must come from private institutional investors.
The first investors to be announced include, in particular, pension funds, financial groups and European long-term investors.
The idea is simple: to use EU funding as leverage to attract several billion euros’ worth of additional private capital.
Who will actually manage the money?
Unlike many European programmes, the European Commission will not make investment decisions directly.
It has chosen the Swedish fund manager EQT, one of Europe’s leading private equity firms, to manage the portfolio. Alongside the European Commission, the founding investors include Allianz, APG Asset Management (on behalf of the Dutch pension fund ABP), Novo Holdings, EIFO (Export and Investment Fund of Denmark), CriteriaCaixa, Santander/Mouro Capital, as well as Fondazione Compagnia di San Paolo, Intesa Sanpaolo and Fondazione Cariplo. The fund also remains open to new European institutional investors.
Decisions will therefore be taken on the basis of profitability and market criteria, even though the fund’s mandate remains focused on European strategic priorities.
Why create a new tool?
Europe is home to many innovative companies, but struggles to fund their expansion.
When their funding requirements exceed several tens of millions of euros, many of them raise capital from US investors, gradually shift their corporate governance – and sometimes even their headquarters – before eventually being taken over by foreign groups.
The Scaleup Europe Fund aims precisely to bridge this “valley of growth”, where Europe regularly loses its future unicorns.
This fund will not replace existing schemes
The Scaleup Europe Fund is the latest addition to an already crowded landscape.
The EIC Accelerator will continue to support innovative start-ups with grants and investments of up to several million euros.
The Step Scale Up programme, for its part, will continue to provide funding to certain strategic companies through investments ranging from 10 to 30 million euros.
The new fund comes into play even later in the life cycle of businesses, when they are seeking much larger amounts of funding.
