The shortage of large-scale growth capital has been one of Europe's biggest weaknesses for years. It often forces successful European companies to raise capital from US investors, who are more than happy to step in, as Adam Niewiński emphasized in the recent interview with Vestbee. The result is that companies created in Europe may move their headquarters, key operations, talent, or ownership elsewhere.
To address this issue, the EU launched the €5 billion Scaleup Europe Fund. To date, the new investment vehicle has already raised half of its initially planned target, with the potential to close oversubscribed. According to the fund’s manager, Swedish firm EQT, it is planning to announce the first investment as early as the beginning of autumn.
We gathered all information and rumors surrounding the Scaleup Europe Fund, and here is what founders need to know about its structure, the selection process, and investment strategy.
What is the Scaleup Europe Fund and what
The Scaleup Fund is a new growth and late-stage investment vehicle targeting approximately €5 billion. It was formally launched at the European Innovation Council Summit in Brussels on June 3, 2026, as part of Europe’s effort to provide more capital to technology companies entering their most expensive stage of growth.
The European Commission has committed €1 billion, while the rest is expected to come from private institutional investors. Novo Holdings has invested €500 million, and the Export and Investment Fund of Denmark — another €200 million. According to Sifted, around €2.5 billion had already been committed by the end of 2025.
Other founding investors include CriteriaCaixa, Santander and Mouro Capital, Wallenberg Investments, Allianz, APG Asset Management on behalf of Dutch pension fund ABP, and a group of Italian banks and foundations, including Fondazione Compagnia San Paolo, Intesa Sanpaolo, and Fondazione Cariplo. EQT, which will manage the vehicle, said it will make a significant commitment of its own capital as well.
For now, the official target remains €5 billion, but the fund could be considerably larger. Novo Holdings has referred to a potential hard cap of €6-7 billion, while EQT says the exact size will depend on how fundraising develops. Early demand appears strong — EQT CEO Per Franzén told the Financial Times that investor interest has been “beyond what we had anticipated.”
Who manages the Scaleup Europe Fund
The Scaleup Europe Fund is managed by Swedish private markets company EQT. The firm won the mandate through a competitive selection process involving 27 eligible fund managers. The final round came down to EQT and Atomico, while Eurazeo, Northzone, and Citruvian Partners were also shortlisted earlier in the process.
Who makes an investment decision
Although the European Commission is one of the fund’s founding investors, it does not select the companies that receive funding. EQT sources and assesses potential investments independently, making decisions on commercial terms. The Commission and other investors participate in the fund’s governance but do not approve individual deals.
It is worth noting that the Scaleup Fund is not a traditional EU grant programme in which companies submit applications and public officials select the winners. The new vehicle operates much more like a private growth fund, looking for commercially strong European technology companies.
Which companies can receive investment from the Scaleup Europe Fund
The fund focuses on European technology companies from Series B through to the pre-IPO stage. It will invest across strategic sectors, including AI and physical AI, quantum computing, semiconductors, robotics, dual-use technologies, clean energy, space, biotech, medical innovation and advanced industrial systems.
Companies must be located in, or planning to establish themselves in, an EU member state or another eligible country associated with Horizon Europe. The fund’s investment strategy caused a debate around the UK, which remains a grey area. London has been negotiating access to the fund, but France and several other EU countries have challenged the idea of allowing British companies to receive its capital.
Typical investments are expected to reach €100 million or more per company, including follow-on rounds. The fund will invest primarily through direct equity. It also plans to take substantial minority stakes and active roles on portfolio company boards.
How can companies apply to the Scaleup Europe Fund
Although the Scaleup Europe Fund is still in the pre-launch process, EQT says it has already opened the door to European founders. “If you’re building something extraordinary in Europe, we want to hear from you,” Christian Sinding, chair of the fund’s investment committee, wrote in June. The fund manager encourages founders to approach the team through EQT’s website.
However, EQT is not starting from zero. The firm says it has identified more than 1,000 potential investment targets, with over 125 companies already being actively on its radar.
For founders, preparing a major growth round, it is worth building a relationship with the team even before entering fundraising mode. The pitch should not focus only on being European or operating in a strategically important sector. EQT has repeatedly stressed that decisions will be commercial. Founders will still need to demonstrate a large market, defensible technology, strong growth, a credible path towards global leadership and a clear reason for raising such a large amount of capital.
The Scaleup Europe Fund is in talks to back Mistral AI
One company may already be close to securing the fund’s backing. According to Sifted, citing three sources with direct knowledge of the matter, EQT is in talks to lead or co-lead Mistral AI’s reported €3 billion Series D at a valuation of around €20 billion through the Scaleup Europe Fund. The deal could become the vehicle’s first investment, although neither EQT nor Mistral has confirmed the talks.
The potential deal has sparked debate over whether the fund should begin with Mistral AI, which can already attract substantial private capital. Backing Mistral AI could suggest that the fund intends to compete for Europe’s most strategically important technology deals, rather than only filling financing gaps. At the same time, it would also ensure that more European-backed capital supports one of the continent’s leading sovereign AI companies.
Isn’t that exactly what the Scaleup Europe Fund is for?
