The European Commission has announced it has joined forces with leading private investors to create the Scaleup Europe Fund, a new multi-billion euro initiative designed to help Europe's most promising technology companies grow into global competitors.
The fund aims to give a financial boost to innovative startups and scaleups — young companies preparing to expand rapidly — operating in strategic deep tech sectors, the Commission said in a statement on Tuesday.
According to the Commission and its partners, the move is in response to long-standing concerns that European innovators lack the funding to reach the size and influence of their US and Asian counterparts.
Despite an abundance of entrepreneurial talent and ideas, European startups often struggle to raise the large sums needed at later stages of growth, holding back the continent’s ability to compete globally, EU commissioners said.
EU President Ursula von der Leyen called the fund “an essential part of our work to make sure the best of Europe can choose Europe,” underlining that strong tech companies are crucial for jobs and competitiveness across the EU.
Backing Europe’s next tech leaders
The Scaleup Europe Fund will focus on providing large-scale investment to fast-growing companies working in key areas such as artificial intelligence, robotics, biotech, new materials, and clean energy.
Founding investors alongside the Commission include major European banks and investment groups, such as Novo Holdings, APG Asset Management, Santander’s Mouro Capital, Wallenberg Investments, and several foundations and national investment funds from Denmark, Spain, Italy, the Netherlands, Poland, and more.
A key goal of the fund is to fill the gap in late-stage investment—the financial support mature startups need to expand internationally, increase hiring, and drive innovation.
The Commission emphasised that, unlike previous initiatives, the Scaleup Europe Fund will be privately managed and co-financed, meaning it will operate according to market principles rather than under direct government control.
The Commission plans to select a management company through a public process in the coming months, with the fund expected to begin investing in early 2026.
Officials hope this landmark fund will encourage more top tech talent to stay and grow their businesses in Europe, rather than seeking opportunities abroad.
