Key facts
- The Scaleup Europe Fund, a public-private vehicle, has been launched with a target of €5 billion ($5.7 billion).
- The fund's first investment was a co-lead in the Series F funding round for Finnish satellite intelligence company ICEYE.
- EQT, a Swedish asset manager, is managing the fund.
- The European Commission committed €1 billion to the fund's first closing.
- Founding investors include Allianz, APG, CriteriaCaixa, Mouro Capital, and several Italian and Danish institutions.
The European Commission has launched the Scaleup Europe Fund, a significant public-private initiative aimed at bolstering European startups and preventing them from seeking late-stage funding abroad. The fund, managed by Swedish asset manager EQT, has a target of €5 billion ($5.7 billion) and will focus on growth-stage companies in strategic sectors such as deep tech, life sciences, clean tech, advanced manufacturing, and digital technologies.
ICEYE, a Finnish satellite intelligence company now valued above $11 billion, has been named as the first startup to receive backing from the fund, which co-led its Series F round. This move signifies the fund's intention to support companies that are critical infrastructure for governments and aim for global competitiveness.
The Scaleup Europe Fund differs from other European institutional programs by being backed by private investors and managed by an experienced external firm, EQT, selected through an open call. The European Commission has committed €1 billion ($1.15 billion) as an anchor investor for the fund's first closing, alongside other institutional investors from across Europe, including Allianz, APG, CriteriaCaixa, Mouro Capital, and several Italian and Danish entities.
EQT's CEO Per Franzén described the initiative as a "big moment for Europe," emphasizing the need to scale European technology companies into global leaders while retaining their European roots. The fund's fundraising is expected to continue until 2027, with potential for non-European investors to participate in future rounds, possibly expanding the fund's total size to €25 billion ($28.9 billion).