European Commission backs €5 billion fund for AI and deep tech
Strategic technologies are becoming central to the Commission’s long-term economic competitiveness plans.
The European Commission has announced that the European Innovation Council Fund Board has selected EQT as the preferred investment adviser and fund manager for the new €5 billion Scaleup Europe Fund, an initiative designed to support European deep-tech scaleups.
According to the Commission, the fund will be the largest initiative of its kind launched in Europe and forms a central pillar of the EU Startup and Scaleup Strategy. It aims to provide late-stage growth capital for European companies operating in strategic technology sectors, including AI, quantum computing, semiconductors, clean technology, biotech, medical technologies, space and dual-use technologies.
European officials said the fund is intended to address the financing gap that has often pushed promising European scaleups to seek investment outside the continent. The aim is to help more high-growth technology firms remain headquartered and operational in Europe as they expand.
EQT was selected following what the Commission described as a competitive process focused on investment expertise, fundraising capability and operational experience in scaling technology companies.
The initiative is being developed alongside several major European institutional investors and financial organisations, including Novo Holdings, Allianz, CriteriaCaixa, ABP and Santander/Mouro Capital.
The Commission said legal agreements and investor approval processes are underway, with the Scaleup Europe Fund expected to begin investment operations in autumn 2026. The initiative will also be formally presented during the EIC Summit on 3 June 2026.
Why does it matter?
he fund reflects Europe’s concern that strategic technologies such as AI, quantum computing, semiconductors, biotechnology and space are increasingly tied to economic security and geopolitical influence. By creating a large European growth-capital vehicle, the EU policymakers are trying to reduce the pressure on scaleups to rely on foreign financing or relocate abroad, while strengthening Europe’s ability to retain innovation, industrial capacity and technological leadership.
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