European Commission Launches Scaleup Europe Fund to Anchor Deep-Tech Exits
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The €5 billion public-private vehicle aims to prevent EU startups from seeking late-stage capital abroad, starting with a Series F investment in ICEYE.
The European Commission has operationalized the Scaleup Europe Fund, a public-private vehicle designed to provide growth-stage funding for EU-based startups in strategic sectors, as TechCrunch first reported. According to TechCrunch, the fund's primary objective is to ensure deep-tech companies can scale into global leaders without relocating outside of Europe.
The fund's debut investment was a co-led Series F round for ICEYE, a Finnish satellite intelligence firm currently valued at over $11 billion. ICEYE CEO Rafal Modrzewski stated on LinkedIn that the fund is necessary so companies in critical infrastructure sectors do not have to leave Europe to compete globally.
Managed by Swedish asset manager EQT, Scaleup Europe has a target deployment of €5 billion ($5.7 billion). TechCrunch reports that the fund's first closing was anchored by a €1 billion investment from the European Commission, alongside a group of founding institutional investors. These include Allianz, APG (representing pension fund ABP), CriteriaCaixa, Mouro Capital, Fondazione Compagnia San Paolo, Intesa Sanpaolo, Fondazione Cariplo, EIFO, and Novo Holdings.
EQT CEO and managing partner Per Franzén described the initiative as a "big moment for Europe." The fund is mandated to invest in sectors including digital technologies, advanced manufacturing, clean tech, life sciences, and deep tech. While the current target is €5 billion, TechCrunch notes that the Commission has suggested the fund could eventually expand to €25 billion ($28.9 billion).
EQT was selected to manage the fund following an open call that included candidates such as Vitruvian Partners, Northzone, and Eurazeo, with Atomico serving as the final challenger.