The European Innovation Council (EIC) has selected Swedish global investment firm EQT as the investment advisor and fund manager for the EU's new EUR 5 billion Scaleup Europe Fund (the Fund). Some of the founder investors of the Fund include - Allianz, Santander/Mouro Capital and the Dutch Pension Fund ABP. The aim of the Fund is to bridge the current gap in funding for scaling European companies that require investments above EUR 100 million in order to grow into major global companies. The European Commission has also outlined that the Fund will "strengthen the EU's economic and tech sovereignty".
Who is the Fund aimed at?
Companies seeking major investment located in (or who aim to locate to) any EU Member State or countries associated with Pillar III of Horizon Europe and which are developing strategic technologies like artificial intelligence, robotics, semiconductor technologies, space technologies, clean energy and medical technologies, for example, can apply to the Fund for investment. Separately, the United Kingdom (UK) is also currently negotiating with the European Commission to permit UK companies to access the Fund. An agreement is yet to be finalised.
When will the Fund launch?
Further information on the Fund will be presented at the EIC Summit in Brussels on 3 June 2026. The objective is that the Fund will commence investing in innovative companies in autumn 2026. Companies seeking to apply for funding should continue to monitor the EIC's website for details on the Fund's investment application process.
Conclusion
The overall aim of the Fund is to address the shortage of late-stage venture capital in Europe and to compete with non-European funds who are currently benefiting from investing in late-stage European Start-Ups. The Fund also ties in with the EU's 28th Regime's objectives which include reducing regulatory barriers to innovation and to address the fragmentation of the EU's capital markets due to different legal regimes in each EU Member State.
For more information, please contact Brian Walsh or your usual contact in Beauchamps LLP.
