The European Innovation Council (EIC) Fund Board has selected EQT as the preferred investment advisor and fund manager for its new Scale Up Europe Fund, a €5 billion initiative aimed at accelerating Europe’s most promising deep tech companies.
The appointment is made following a competitive selection process that evaluates companies on their investment expertise, financing capabilities and operational capabilities.
The Scaleup Europe Fund aims to tackle one of Europe’s biggest startup challenges: the lack of late-stage funding for fast-growing technology companies.
European scale-ups often rely on foreign investors to secure large funding rounds, many of which end up relocating outside the EU. The new fund aims to reverse this trend by providing growth-stage capital within Europe.
The result is the launch of the largest deep technology scale-up investment vehicle ever assembled in Europe. The ScaleUp Europe Fund is backed by major institutional investors and the European Commission and is expected to begin investing in autumn 2026, following completion of legal and regulatory approvals.
Commenting on EQT’s selection, Ekaterina Zakharieva, Director General for Start-ups, Research and Innovation, said:
“The Scale Up Europe Fund is a bold step forward for us, uniting public and private capital behind a common vision for European leadership.
“With a newly selected fund manager and an alliance of Europe’s most respected long-term investors, this is proof of what Europe can achieve when it aligns its resources.”
ScaleUp Europe Fund targets strategic technology
The ScaleUp Europe Fund forms a central pillar of the EU Startup and Scaleup Strategy, which aims to strengthen Europe’s competitiveness in advanced technologies. The fund will focus on sectors deemed to be of strategic importance for Europe’s economic and industrial future.
These include artificial intelligence, quantum computing, dual-use technologies, clean energy, space innovation, biotechnology, and medical technology.
European policymakers are increasingly warning that the continent risks losing its technological leadership as the most successful startups struggle to secure late-stage funding at home.
Although Europe has produced a strong early-stage innovation ecosystem, scale-ups often turn to US or Asian investors when seeking the larger rounds needed for global expansion.
The Scaleup Europe Fund aims to help high-potential companies continue to build their headquarters and scale within Europe by creating a dedicated €5 billion growth capital platform.
Why EQT was chosen
EQT was chosen because of its experience supporting growth-stage technology businesses and its established infrastructure across Europe.
The investment firm has built a strong reputation in private equity and growth investing, particularly in the technology-focused sector.
According to the EIC Fund Board, EQT has demonstrated the operational capabilities required to manage a fund of this size, as well as a commitment to retaining a dedicated investment team based in the EU.
The selection process began with a public call for expressions of interest from December 2025 to February 2026.
Applicants were evaluated on several criteria, including track record of scale-up investments, ability to raise capital, and ability to support high-growth companies beyond capital deployment.
This decision paves the way for the Scale-Up Europe Fund to begin operations, although final contractual agreements and governance structures are still being finalized.
Major European investors support this initiative
The ScaleUp Europe Fund has already secured support from a coalition of Europe’s leading financial institutions and long-term investors.
The founding investor group includes Novo Holdings, EIFO, Criteria Caixa, Santander and its investment arm Mouro Capital, as well as major pension and insurance investors such as Dutch pension fund ABP and Allianz.
Italian institutional investors such as the Sanpaolo Foundation, Intesa Sanpaolo and the Calipro Foundation are also involved in shaping the fund’s investment framework.
Their participation signals growing confidence among Europe’s largest capital allocators that deep technology investments can generate both strategic value and long-term returns.
Additional investors have also reportedly expressed interest ahead of the fund’s first close.
First investment planned for fall 2026
EQT and the EIC Fund are currently working to finalize the legal structure, governance model and investment framework for the Scaleup Europe Fund. Founding investors are simultaneously going through internal due diligence and board approval processes.
These procedures are expected to be completed in the coming weeks, paving the way for the fund’s first formal closure.
The ScaleUp Europe Fund and its management team will be formally announced during the EIC Summit on 3 June 2026.
If all goes to plan, the fund is expected to make its first investments in autumn 2026, marking a major milestone in Europe’s efforts to build a stronger homegrown deep tech ecosystem.
Source link
