Bloomberg reports that the Commission hopes to eventually grow the fund to €25bn.
The EU is bringing together a group of private investors to pump billions into the region’s deep-tech sector.
The new multibillion-euro ‘Scaleup Europe Fund’ aims to boost investments in scale-ups and close the gap with global leaders. It builds on the ‘Choose Europe to start and scale’ strategy launched earlier this year.
Alongside the Commission and the European Investment bank, potential participating investors include Novo Holdings, Denmark’s Export and Investment Fund, Spain’s CriteriaCaixa and the Netherland’s APG Asset Management.
Bloomberg reports that the fund has an initial goal of €5bn, and has already received commitments for €3bn.
An additional €1bn is set to come from the European Innovation Council (EIC), sources have said. The EIC’s budget to support deep-tech research and start-ups sits at around €1.4bn this year.
The Commission eventually hopes to raise €25bn for the scale-up fund, a spokesperson told the publication.
The EU notes that the region suffers from limited access to late-stage growth capital, as well as from fragmented investment markets, which has hindered scale-ups here to grow when compared to industry leaders in China and the US.
The fund is a fresh EU measure that aims to tackle these issues fueling growth capital and late-stage investments in a broad range of strategic tech, including AI, quantum, semiconductors, robotics and autonomous systems, energy, space, biotech, medtech, advanced materials and agritech.
Speaking to SiliconRepublic.com earlier this year, EIC board member Bart Becks said that the EU’s start and scale strategy targets regulation and funding – two aspects key to improving Europe’s position in the global start-up ecosystem.
“Europe has the ideas and the talent to build the most innovative companies in the world. But as they scale up we need to ensure they have the means to grow, attract investment and thrive right here at home,” said European Commission president Ursula von der Leyen.
“High-quality jobs and Europe’s overall competitiveness depends on it. The Scaleup Europe Fund is an essential part of our work to make sure the best of Europe can choose Europe.”
The fund will be privately managed and co-financed investing in scale-ups in major European-led investment rounds. The Commission and the founding investors are set to select a management company to implement the fund, with the aim of beginning investments by spring 2026.
“We are joining forces with leading private investors to build a multibillion-euro fund that will invest in the best European companies in strategic deep tech,” said Ekaterina Zaharieva, the EU commissioner for start-ups, research and innovation.
“We will ensure that companies can find the capital they need, right here in Europe, to drive European innovation and reinforce our continent’s position as a global leader in the industries that will shape our future.”
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