Scaleup Europe Debuts with $5.7B Fund to Anchor Tech Sovereignty

The fund, managed by Swedish asset manager EQT, represents a strategic pivot for Brussels. Rather than relying on direct institutional handouts, the program leverages private capital to support companies operating in critical sectors like deep tech, biotech, and semiconductors. The European Commission has anchored the effort with a €1 billion commitment, joined by institutional heavyweights including Allianz, APG, and Denmark’s EIFO.

ICEYE, which recently secured backing in a Series F round co-led by the fund, highlights the mandate’s focus on companies that provide essential infrastructure. CEO Rafal Modrzewski noted that the fund is designed to ensure high-growth businesses can maintain their European roots while competing on a global stage. EQT, selected following an open call that included challengers like Atomico, is tasked with expanding the fund’s reach toward a potential €25 billion target by 2027. This scale remains an outlier in the European VC landscape, where multibillion-euro funds are historically rare compared to U.S. or Asian counterparts.