EQT picked to manage EU's €5B Scaleup Europe Fund
The European Innovation Council (EIC) has chosen Swedish investment firm EQT to manage the €5B Scaleup Europe Fund — the largest fund of its kind ever mobilised in Europe. It will invest in deep-tech scaleups working on AI, quantum computing, clean energy, space technology, biotech, and dual-use technologies across the EU and associated countries.
EQT, which manages €269B in total assets, beat out London-based Atomico in the final round. The long list included France's Eurazeo and UK-based Vitruvian. Bloomberg first reported the win.
Around €2.5B had been committed as of late 2025: €1B from the EIC itself and €1.5B from private LPs including Novo Holdings, CriteriaCaixa, Santander/Mouro Capital, APG Asset Management, and Sweden's Wallenberg family. EQT will also commit significant capital of its own.
Europe has watched US and Chinese firms dominate frontier technology while its most promising startups sell to overseas buyers or relocate. AMD acquired Finnish AI lab Silo AI for $665M in 2024; UK quantum startup Oxford Ionics was bought by IonQ for over $1B in 2025.
The fund is designed to bridge Europe's late-stage financing gap and give scaleups a reason to stay on the continent. Companies that receive funding must maintain their headquarters and core operations in Europe. The EIC eventually hopes to grow the fund to €25B.
EQT faced scrutiny in early 2026 after concerns were raised about Lars Frølund , a former European Commission adviser who joined EQT as a part-time external advisor. A company spokesperson said "EQT strictly adheres to all applicable disclosure and governance rules," adding that Frølund is one of hundreds of external advisors.
There's also the question of whether a government-backed mega-fund can match the pace and flexibility of private venture capital — and whether requiring companies to keep headquarters in Europe will limit the pool of viable investments.
This is the EU putting serious money behind a long-standing complaint: that Europe creates world-class startups but can't scale them. The fund's structure — blending public and private capital with a mandate to back growth-stage companies raising €100M or more — reflects a broader shift toward industrial policy as a tool for tech competitiveness.
"Europe has proven its ability to create successful early-stage technology companies. The challenge is now to scale those businesses into becoming global leaders while maintaining their European roots," said Per Franzén , chief executive officer at EQT.
If it works, the Scaleup Europe Fund could become a template for how the continent competes with the US and China in the race for deep-tech supremacy.
Sources:
European Commission
EQT
Mirage News
Sifted
Bloomberg
Image credit:
EQT
J.V.
